However, Robinhood is not legally bound to carry out every trade and the lawsuits will not succeed without evidence the company restricted trading for an improper reason, such as to favor certain investors, according to several legal experts. I've been using Robinhood since 2015, it's a good place to start but once you're serous look for a better broker. Once you verify your email address, secure your account with two-factor authentication.
To sign up for Robinhood, create a free account using your email address and a password. The lawsuits, brought in federal court, allege that the Menlo Park, California-based company breached its contractual obligation as a regulated broker to execute orders promptly and effectively. The user-friendly app allows users to quickly see the price of crypto, and place an order with a few clicks. Robinhood’s users were at the center of this week’s wild rally in a handful of stocks that had been heavily shorted by hedge funds and championed by individual investors in online chatrooms including Reddit’s WallStreetBets. Robinhood have successfully targeted themselves to young and new investors thanks to their commission free trading, low volume trading options and no account minimum deposit.
The owners of internet platforms where much of the discussion took place are likewise shielded from liability for users’ activity under a 25-year-old law known as Section 230.Īt least a dozen proposed class action lawsuits accuse Robinhood of breaching its contract with customers when it restricted trading on Thursday. Robinhood is a California based brokerage that proudly charges no commission fees on stocks, ETFs, options and cryptocurrency trading. REUTERS/Brendan McDermid/Illustration/File Photo
FILE PHOTO: Trading information for GameStop is displayed on the Robinhood App as another screen displays the Robinhood logo in this photo illustration January 29, 2021.