Robinhood's track record in recent years has been completely dismal.Systemic FailuresRobinhood, an investment platform, has agreed to pay a fine in excess of $70 million to the Financial Industry Regulatory Authority. This US organization is responsible for regulating brokerage firms as well as exchange markets. Why? Robinhood is simply terrible at what it does.According to a press release, the financial penalty was imposed by FINRA because Robinhood's systemic supervision failures and the significant harm that millions of customers suffered.Robinhood, which has provided misleading or false information to millions of its customers, has caused several system outages and approved extremely risky trades according to the filing.Robinhood's track record in recent years has been nothing but a disaster. Customers should think twice about signing up.AdvertisementAdvertisementInadvertently misleading MillionsFINRA's investigation revealed that the platform provided misleading information about customers balances, whether they could trade on certain days, their buying power, and what risk they were taking by completing certain transactions.Things became so bad that Alex Kearns (a 20-year old customer) was led to believe that he owed $720,000. CNBC reported that he owed half of the debt.Constant outagesRobinhood suffered three outages in a single week of March 2020 as US stocks plunged by historic margins. In May, Robinhood experienced yet another outage as alternative cryptocurrency Dogecoin soared. Customers were left with no way to make huge gains.Robinhood also stopped purchases of GameStop stock, AMC and BlackBerry stock in January. Popular subreddit, r/WallStretBets caused them go haywire. Tesla CEO Elon Musk suggested in a CNBC interview, that something may have gone wrong.AdvertisementAdvertisementRobinhood customers have suffered over $7 million in losses due to misstatements. The organization is asking the platform to compensate these customers with more than $7,000,000 in restitution.Despite Google's best efforts, the platform's popularity has plummeted in the past year despite its 100,000 negative reviews.However, FINRA's fine should be a warning to all: Keep your distance from Robinhood and keep your cash away.READ MORE: Robinhood will pay $70 Million in fines after causing customers significant and widespread harm [CNBC]AdvertisementAdvertisementMore Robinhood: Robinhood went down yet again, this time due to Dogecoin SpikeFuturism readers are invited to join the Singularity Global Community. This is our parent company's forum for futuristic science and technology discussions with other like-minded people around the globe. Sign up today to get started!
