Robinhood’s Most Important Lesson: We Need a Truth-in-Investing Act
In one of our EconomicEquality blog posts, I extolled commission-free, fractional trading as a pathway to wealth equality.  It wasn’t because I admired Robinhood – quite the contrary.  At the time, I was thinking of established brokers with effective customer-service and security safeguards such as Charles Schwab, but no matter.  I was still wrong.  I should have looked more carefully behind the “democratization” panegyrics draped in front of a business model which, like so many other “democratizing” financial services before it, supported wealth accumulation first, foremost, and pretty much exclusively for company owners, not vulnerable customers.