Major Investing Firm Robinhood Financial has copped a $93 Million fine from the Financial Industry Regulatory Authority

Robinhood will pay close to $93 million AUD to settle a wide range of allegations, including that the investment firm gave customers misleading information while also allowing some users to make riskier trades after they lied about their trading experience.

The financial penalty is the largest ever ordered by the Financial Industry Regulatory Authority.

The FIRA is a non-governmental organisation that oversees the brokerage industr.

Head of FIRA’s department of enforcement Jessica Hopper said that the fine “reflects the scope and seriousness of Robinhood’s violations,”

Since its 2014 launch, Robinhood has shaken up the brokerage industry with zero-commission trading.

The investment firm is also renowned for its easy-to-use app that’s drawn a new generation of investors into the market.

Robinhood already has more than 31 million customers

Many of the finance firms customers were earlier getting left behind as the stock market rose without them. But it’s also faced criticism and penalties from a range of regulators over allegations that it encouraged novices to make trades too risky for them and hurt them in other ways.

Robinhood neither admitted nor denied the allegations in the settlement

Robinhood detailed how it has improved support for its customers, including the ability to call in and talk with a service representative for some issues that they encounter on the platform.

Robinhood is preparing to sell its own stock on the market in one of Wall Street’s most anticipated initial public offerings.