One unintended consequence of COVID-19’s impact on financial markets has been the influx of new retail investors. Online brokerages, such as Robinhood, provide a platform where almost anyone can deploy capital into public markets, regardless of their experience or financial means. While the goal of platforms like Robinhood is to “democratize” investing, the ease of…
Can Access to Financial Markets Be Democratized?
Robinhood Financial and their quest to democratize access to financial markets ran into another speed bump this week, with Robinhood agreeing to pay a $1.25M fine to FINRA as a result of failing to insure the order flow they sold to third parties for execution without considering such factors as “price improvement” and best execution….