In the first quarter of 2020 alone, Robinhood racked up 2 million new accounts, exceeding the combined number of new users at Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Corp. during the period. As of May, the firm had 13 million accounts, up from 10 million at the end of 2019. The firm’s revenue from selling orders was $180.1 million for the second quarter, double what it took in for the prior three months, according to a regulatory filing.
The scrutiny over payment for order flow isn’t the only SEC probe Robinhood faces. The agency -- along with brokerage watchdog the Financial Industry Regulatory Authority -- is also investigating a March outage of the company’s app that sidelined customers for almost two days, Bloomberg reported Monday, citing people familiar with the matter. Among the issues the agencies are investigating is how Robinhood responded to client complaints.
This article was provided by Bloomberg News.