Robinhood settles with Mass. regulator over its ‘gamification’ features

Robinhood will overhaul its practices to resolve allegations that it encouraged inexperienced investors to place risky trades.

Online brokerage Robinhood has agreed to pay a $7.5m fine and retool its practices to resolve allegations by Massachusetts’ securities regulators that it encouraged everyday investors to place risky trades.

Massachusetts Secretary of State Bill Galvin filed an enforcement action in 2020 alleging Robinhood’s app-based service used gamification strategies that

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