Coinbase (COIN) is rolling out stock trading and prediction markets on its app, making a big expansion from cryptocurrencies. The company does not allow trading in mutual funds, preferred stocks, bonds, some high-risk penny stocks, and new positions in options on their expiration dates in the last 30 minutes of the trading day. The company is named after Robin Hood, based on its mission to “provide everyone with access to the financial markets, not just the wealthy”. Its platform is available in the U.S., the UK, and, for trading cryptocurrency and tokenized stocks and ETFs only, in the European Union. A self-custody cryptocurrency wallet, Robinhood Wallet, and related services are offered through Robinhood Non-Custodial, Ltd. (a limited company organized in the Cayman Islands). In recent years, cryptocurrency has risen in popularity as a form of digital investment, and it is important to remember that the cryptocurrency market is highly volatile and there is no government guarantee or insurance for crypto assets.

• The company has 27.4 million funded customers and $279 billion in assets under custody.
• Robinhood Markets, Inc. is an American financial services company based in Menlo Park, California.
• “In recent years, the brokerage industry has continued to evolve and develop innovative services and technologies that have allowed millions of new investors to access the markets,” said Bill St. Louis, Executive Vice President and Head of Enforcement at FINRA.
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• Also in December 2020, Robinhood was sued in the United States District Court for the Northern District of California for failing to disclose to customers that it received payment for order flow, leading to inferior trade prices.

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FINRA regulates one critical part of the securities industry—member brokerage firms doing business in the U.S. The case was dismissed by the Miami federal court in November 2021 on the grounds that the plaintiffs fell short of providing direct evidence of an antitrust conspiracy and that its terms of service allowed the company to prohibit trading by customers. The company began once again allowing trading in the affected stocks on January 29.

In March 2025, Robinhood announced the launch of wealth management services. The following month, Robinhood launched its “Sherwood News” website and a rebrand of its financial newsletter Snacks. In February 2018, the company announced that it would be moving its headquarters from Palo Alto to the former headquarters of Sunset magazine in Menlo Park.

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• Robinhood operates a popular trading platform to buy and sell cryptocurrencies such as Bitcoin.
• FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public.
• To report on abuse or fraud in the industry

The top S&P 500 stocks look very different over the past month than they have all year. FINRA operates the largest securities dispute resolution fxcritical in the United States To report on abuse or fraud in the industry

In 2022, Attorney General Bonta urged Californians to stay informed and protect their money when investing in the cryptocurrency market by launching a new webpage with information on cryptocurrencies and how to avoid scams and other pitfalls. Despite these assurances, Robinhood did not tell customers that there were instances in which it arranged for trading venues to hold customer assets for extended periods. Robinhood also represented to its customers that Robinhood itself held all its customers’ cryptocurrencies purchased through Robinhood’s platform. Robinhood misled customers by advertising it would connect to multiple trading venues, to ensure customers receive the most competitive prices between the venues, which was not always true. The investigation by the California Department of Justice concluded that Robinhood sold commodities contracts in violation of the CCL by allowing customers, who hoped their investment would become more valuable shortly, to buy cryptocurrencies without actually delivering these assets to customers.

FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. FINRA’s use of fine monies is limited to specific purposes set forth in its public Financial Guiding Principles, which are approved by its Board of Governors. The decision to halt trading was criticized by customers as well as politicians including Ted Cruz and Alexandria Ocasio-Cortez. On January 28, 2021, several stockbrokers, including Robinhood, restricted the trading of certain stocks, most notably GameStop, to meet collateral requirements at its clearing house, the National Securities Clearing Corporation, following an effort by users of the r/wallstreetbets subreddit to drive up share prices. Robinhood Financial was also ordered to pay $3.75 million in restitution to certain customers whose market orders were restricted and canceled, leading them to re-enter their orders and receive executions at a less favorable price.

r/RobinHood Rules

Three months later, the company announced a $200 million Series G funding round from a new investor, D1 Capital Partners. The following September, Robinhood raised $13 million in a Series A round, with returning investors Index Ventures and Howard Lindzon, as well as new investors Ribbit Capital, Aaron Levie, Dave Morin, Jared Leto, Snoop Dogg, and Nas. In December 2013, Robinhood closed its seed funding round, securing $3 million in an investment led by Index Ventures, with participation from Andreessen Horowitz, Rothenberg Ventures, Tim Draper, and Howard Lindzon. Soon after, Robinhood received its MiFID and MICA licenses, allowing Robinhood Europe to operate as a cryptocurrency exchange.

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In September 2024, Robinhood paid $3.9 million and instituted changes to settle claims by the State of California that, between 2018 and 2022, customers could not make timely withdrawals of cryptocurrency from their Robinhood accounts to cryptocurrency wallets. Robinhood then began offering additional guidance and requiring additional criteria and education for customers seeking authorization to trade options. In March 2023, the company agreed to pay $10 million to settle class action lawsuits regarding trading losses due to the outages. On Monday, March 2, 2020, during the COVID-19 pandemic, likely due to high trading volumes, Robinhood suffered a systemwide, all-day outage that prevented users from accessing the mobile app on a day when the S&P 500 climbed more than 4.6%. Passwords were then hashed using the Bcrypt algorithm and the company advised customers to change their passwords. The Financial Industry Regulatory Authority fined Robinhood $1.25 million in December 2019 for failing to ensure that its customers received the best price for orders, instead routing orders based on payments that it receives from market makers.

The founders presented the mobile app at LA Hacks in April 2014 and launched a beta release in December on the Apple App Store. They aimed to design a mobile app that was free, easy to use, and addictive. Robinhood has targeted millennials as customers; in March 2025, the average age of its customers was 35. Approximately 2 billion option contracts are traded annually on the Robinhood platform. Sherwood Media, LLC produces fresh and unique perspectives on topical financial news.

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For more information, visit FINRA is a not-for-profit organization dedicated to investor protection and market https://xcritical.online/ integrity. FINRA publicly itemizes and discloses how it uses fine monies each year.

Account issue

The investigation into Robinhood resulted from consumer complaints of questionable behavior in the cryptocurrency industry. Robinhood operates a popular trading platform to buy and sell cryptocurrencies such as Bitcoin. FINRA also administers a dispute resolution fxcritical for investors and brokerage firms and their registered employees.

Investing

Investment products and services are offered through Moomoo Financial Inc., Member SIPC./FINRA. Real-time quote and/or trade prices are not sourced from all markets. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. The brokerage is teaming up with market maker Susquehanna International…

It provides an electronic trading platform that facilitates trades of stocks, exchange-traded funds, options, index options, futures contracts, outcomes on prediction markets, and cryptocurrency. “In recent years, the brokerage industry has continued to evolve and xcritical website develop innovative services and technologies that have allowed millions of new investors to access the markets,” said Bill St. Louis, Executive Vice President and Head of Enforcement at FINRA. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. During that period, customers could not withdraw their cryptocurrency and were forced to sell it back to Robinhood to exit the trading platform.

Securities and Exchange Commission in May 2024 alleging that the company had violated securities laws over crypto tokens traded on its platform; Robinhood countered that cryptocurrencies are not securities and are not covered by securities laws. The company went public via an initial public offering on the Nasdaq on July 29, 2021, raising approximately $2.1 billion and valuing Robinhood at about $32 billion. In June 2025, the company launched trading in tokenized ETFs and stocks in the European Union. In the second quarter of 2020, during the 2020 stock market crash, compared to the first quarter of 2020, trading volumes increased 139%, more than any other major brokerage. Robinhood was founded in April 2013 by Vladimir Tenev and Baiju Bhatt, who had previously built high-frequency trading platforms for financial institutions in New York City. Robinhood Markets, Inc. is an American financial services company based in Menlo Park, California.

Say Technologies, LLC provides technology services for shareholder engagement and communication. Account access and trade execution may be affected by factors such as market volatility. Electronic trading also involves risks.

In February 2024, the company paid $7.5 million and agreed to overhaul its digital engagement practices to settle the remaining claims. In August 2022, Robinhood’s cryptocurrency division was fined $30 million by the New York State Department of Financial Services for allegedly violating anti-money-laundering and cybersecurity regulations, in the department’s first cryptocurrency-related enforcement action. The company also was criticized for not responding timely to inquiries by Kearns about the negative balance. In June 2020, 20-year old University of Nebraska–Lincoln student Alexander E. Kearns committed suicide after seeing a negative cash balance of $730,000 in his Robinhood account after the expiration, exercise, and assignment of options positions, likely a bull spread. In November 2021, a voice phishing scheme on a Robinhood employee resulted in about 5 million customers having their email addresses stolen, 2 million customers having their full names disclosed and 300 customers having their dates of birth disclosed.

Options trading entails significant risk and is not appropriate for all customers. Robinhood is adding a futures and derivatives exchange and clearinghouse to better serve the firm’s prediction-markets platform, which offers trades on sports, the economy and other events. Robinhood Markets (HOOD) was the best-performing stock in the S&P 500 Wednesday, after the brokerage announced an expansion of its prediction markets offerings.