Robinhood rejects Massachusetts regulator's charges it encourages risky trading

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By Nate Raymond
BOSTON (Reuters) - Online brokerage Robinhood on Friday accused Massachusetts securities regulators of creating a "false impression" that it encourages inexperienced investors to place trades without limits and inappropriately approved customers for risky trading.
Robinhood's lawyers filed a response to administrative charges filed against it in December. On Thursday, Robinhood came under criticism for restricting trading in some hot stocks including GameStop. It later eased those restrictions.
Massachusetts Secretary of the Commonwealth William Galvin, the state's top securities regulator, accused Robinhood of using aggressive tactics to attract inexperienced investors and failing to prevent outages on its platform.
He accused the app-based service of using strategies that treated trading like a game to lure young, inexperienced customers, including having confetti rain down for each trade made on its ...


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