Robinhood CEO: Our company has been attacked by critics who say our platform is “gamified”
‘Disconnected Investors’ Attack Without Minimum Commission or Brokerage, Says Robinhood Markets Inc (NASDAQ: HOOD) CEO Vlad Tenev.
What happened: In a recent opinion piece published in the Wall Street Journal, Tenev said the company had “been the subject of attacks from critics” who insist the platform is “gamified.”
“They point to features like stock and exchange-traded fund listings that help people discover investments and stock movement notifications that help them stay informed,” Tenev said.
“Investing isn’t a game, but does it have to be dark and hard to understand? “
In his opinion, platforms like Robinhood have helped people left behind by Wall Street build wealth like never before.
“Following Robinhood’s example, many brokerages in the industry gave up their commissions in late 2019 after having billed them for decades. According to one estimate, this put about $ 13 billion back into the hands of retail investors, ”he said.
Critics have publicly denounced these retail investors themselves and not just the modern investment platforms chosen by them, the CEO wrote.
Some critics have even suggested that the new investors are “uninformed gamers looking to get rich quick,” Tenev said.
“Not only are these stereotypes offensive, the data tells a whole different story. “
The CEO then addressed the controversy surrounding payment for order flow – one of Robinhood’s main sources of income.
“A ban on payment for the flow of orders is unlikely to help retail investors get better prices and would likely re-erect the barriers that have kept so many people from entering the market,” Tenev argued.
“One wonders if the push to ban checkout payment and over-regulate modern design is about investor protection or really control.”
HOOD price action: Robinhood shares were down 1.59% pre-market Tuesday at $ 44.05.