Do we like Robinhood?
Commission-free trading and crypto app for stocks, options and crypto, based in Menlo Park, California.
Our score: 4 out of 10. Made investing easy for ordinary people, but it has a long record of regulator fines for compliance and customer-protection failures. We'd be cautious.
Robinhood was founded by Vlad Tenev and Baiju Bhatt on the idea of commission-free trading for everyone. Tenev has been sole CEO since November 2020 and is still in charge in 2026, according to the sources we found.
The regulators have had a lot to say. In 2021 FINRA hit it with a record penalty of about $70 million. FINRA said Robinhood had negligently given customers false or misleading information, and it cited app outages and unreported complaints.
It didn't stop there. In January 2024 Robinhood paid $7.5 million to settle Massachusetts allegations that it encouraged inexperienced investors to place risky trades. In 2025 came a $45 million SEC deal and a $29.75 million FINRA package.
So we'd say mixed, leaning cautious. The product is popular and has widened access to investing, but the same compliance failures keep coming up. We'd want a clean run before backing it with our own money.