Robinhood, an app that allows users to trade stocks largely commission free, was recently fined by the SEC for not being transparent about how they monetize their consumer’s data.

The fine? Just $2m Robinhood’s valuation? $11.2 bn.

Like Facebook, Robinhood does not think of its investors as customers but rather as products whose data can be sold to the highest bidder.

Robinhood sells data on trades its investors make to other hedge funds who front run these trades or use it to glean insight about what the dumb money is doing.

Robinhood traders also trade 88 times more options than competitors.

“Options” are exotic financial instruments that are not for novice investors. Most of Robinhood’s investors are young men simply do not understand the complexities of some Wall Street trades.

When Robinhood had an outage recently volatility sky-rocketed and volume went way down.  Like Uber and Facebook, Robinhood are a tech firm that are disruptive in their markets in a way that often does more harm than good.

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