Robinhood Financial

Robinhood Financial, LLC has agreed to a settlement and fine of $1.25M for best execution violations related to its customers' equity orders, in that it routed its customers’ non-directed equity orders to four broker-dealers, all of which paid Robinhood for that order flow.

Robinhood did not reasonably consider FINRA Rule 5310 execution quality factors (such as price improvement) that the firm could obtain from alternative markets nor did it perform systematic best execution reviews of several order types, such as nonmarketable limit orders, stop orders, and orders received outside of regular trading hours.