Robinhood Informs that the Company Does not Sell Customer Information

Robinhood, the zero-fee trading platform has decided to release a statement in which they inform that they do not sell customer information. Robinhood has been accused of selling user data to other firms in the financial world.

Robinhood disclosed its financial report for the second quarter of the current year with the intention to be compliant with the U.S. Securities and Exchange Commission (SEC). The report spread in the community and several analysts believe that the platform is selling information to other companies and earning millions of dollars because of it.

Nonetheless, the Head of Communications of Robinhood, Jack Randall, released a statement on behalf of the company. He explained that Robinhood participates in rebate programs that help customers get additional price improvement for their orders.

Sharing our press statement about how Robinhood routes its orders. We shared this with bloggers four days ago but no one corrected or updated their articles…facts, nuance, and following regulation aren't always interesting to cover, unfortunately. pic.twitter.com/obdKhuncTK

— Jack Randall (@TheJGR) September 17, 2018

Moreover, the platform informed that they are committed towards eliminating conflict of interest at the time of executing the orders of the customers. This is the reason why the platform has the same payment rate with leading execution venues.

The statement released by the company reads as follows:

“Robinhood algorithmically routes orders to a variety of different execution venues based on which is most likely to provide the greatest execution quantity and price improvement on that order in addition to the NBBO. No other facts impact where customers orders are routed.”

Furthermore, Randall clarified that the platform does not sell data from their customers. The company informs that they take the security and privacy of the users ‘extremely seriously.’ In addition to it, he explained that they did not sell customer information in the past and that they do not plan to do that in the future.

Robinhood is the second most valuable private fintech company with more than 4 million customers. The company makes money by lending shares to short-sellers and charging borrowers a fee. Additionally, Robinhood offers a premium subscription service known as Robinhood Gold, which features more advanced features for its users.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

153 +