Robinhood fined $ 1.25 million for failing to ensure optimal execution when sending customer orders

Crypto trading platform Robinhood was fined $ 1.25 million by the U.S. Financial Industry Regulatory Agency (FINRA), and FINRA blamed the company for failing to conduct proper due diligence to ensure that customer orders are executed in the best markets of 2016-2017. At that time, Robinhood sent the client's securities orders to four broker-dealers for execution, while receiving payments for the order process. In a press release issued on Thursday, FINRA announced that it had reached a settlement with Robinhood on the issue. In addition to paying fines, Robinhood also uses execution analysis software from an independent vendor, hires a best executive manager, and agrees to retain an independent consultant to review the company's enforcement procedures.