The suicide of a 20 year old who was using the popular trading app Robinhood has set off alarm bells for the company and the industry; late last week lawmakers sent a letter to Robinhood asking about safeguards so something like this does not happen again; “Robinhood has been very successful in marketing itself as an easy to use and low-cost brokerage service among first-time retail investors, especially in recent months,” the letter states according to American Banker. “By seeking to cultivate a customer base of relatively inexperienced investors, you have also taken on an especially great responsibility to make sure your customers are protected and always provided with clear and accurate information.”; the letter asks ten questions about options trading and who is eligible to do so; the company write a blog post last month setting out changes to the platform and how they plan to increase access to educational materials; with all the bad news of late Robinhood was still able to secure more than $300mn in fresh capital last week. American Banker.
