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Since Robin Hood is trending it is a good time to remind people that the brokerage recently settled with the SEC for a whopping $65,000,000 over a variety of misrepresentations about their platform, including the true costs of choosing to trade there. 
https://www.sec.gov/news/press-release/2020-321
https://www.sec.gov/news/press-release/2020-321
Robinhood has also been hacked, a situation that put at least 2,000 accounts in harm's way back in October of 2020.
Customers complained that they were unable to contact the firm's customer service by phone (there is no customer service phone number). https://www.bloomberg.com/news/articles/2020-10-15/robinhood-estimates-hackers-infiltrated-almost-2-000-accounts
Customers complained that they were unable to contact the firm's customer service by phone (there is no customer service phone number). https://www.bloomberg.com/news/articles/2020-10-15/robinhood-estimates-hackers-infiltrated-almost-2-000-accounts
In addition to the apparent deception and defrauding of customers, and the known hack, Massachusettes also charged Robinhood with targeting inexperienced investors *and* failing to prevent systemic outages that caused losses for some clients. https://boston.cbslocal.com/2020/12/16/robinhood-investing-galvin-charges-outages/
The problem with Robinhood's app crashing is something that was a regular crisis for clients during 2020.
Robinhood claimed they had the situation under control, and yet it happened several more times.
It's unclear if the problems are resolved now. https://www.cnn.com/2020/03/04/business/robinhood-outage-explanation/index.html
Robinhood claimed they had the situation under control, and yet it happened several more times.
It's unclear if the problems are resolved now. https://www.cnn.com/2020/03/04/business/robinhood-outage-explanation/index.html
The legal problems at Robinhood continue, as a class action complaint in the US District Court of Northern CA was filed on Jan 15th over, "material omissions, misrepresentations, and concealment" of its "dark pool" of payments for order flow arrangements. https://www.thinkadvisor.com/2021/01/22/robinhood-sued-over-issues-tied-to-dark-pool-of-payments/
Even after the October 2020 hack at Robinhood, customers have continued to complain about hacks.
This particular client alleges a $300,000 loss from a malware-related account breach.
When trying to call in a panic they found there was no phone number.. https://www.bloomberg.com/news/articles/2020-12-22/robinhood-user-says-300-000-restored-from-hack-then-taken-back
This particular client alleges a $300,000 loss from a malware-related account breach.
When trying to call in a panic they found there was no phone number.. https://www.bloomberg.com/news/articles/2020-12-22/robinhood-user-says-300-000-restored-from-hack-then-taken-back
Robinhood's Better Business Bureau profile shows 105 customer reviews with an average rating of 1.5/5 stars.
The BBB gives the firm an "F" rating.
The page shows 997 complaints over the last three years, and 743 complaints over the last 12 months closed.
https://www.bbb.org/us/ca/menlo-park/profile/financial-services/robinhood-1116-881958
The BBB gives the firm an "F" rating.
The page shows 997 complaints over the last three years, and 743 complaints over the last 12 months closed.
https://www.bbb.org/us/ca/menlo-park/profile/financial-services/robinhood-1116-881958
Ripoff Report shows about 20+ complaints when searching for "Robinhood", many of them related to the online brokerage Robinhood.
Many of the complaints allege fraud, deception, etc.
https://www.ripoffreport.com/reports/specific_search/robinhood
Many of the complaints allege fraud, deception, etc.
https://www.ripoffreport.com/reports/specific_search/robinhood
Investopedia, a well respected resource for investors, rates Robinhood as a 2/5 stars. Highlights:
-Trades appear to be routed to generate payment for order flow, not best price
-Quotes don't stream, delayed
-There is very little research or resources https://www.investopedia.com/robinhood-review-4587919
-Trades appear to be routed to generate payment for order flow, not best price
-Quotes don't stream, delayed
-There is very little research or resources https://www.investopedia.com/robinhood-review-4587919
Is it worth doing business with Robinhood? I leave that for you to judge after reading this thread. I would not do business with this firm. In my humble opinion there are far better brokers that also have free trades, better order execution, better customer service, and research.
