Commission-free trading app Robinhood has promissed to take proper measures after a 20-year-old customer died by suicide thinking he incurred losses of over $730,000. In his suicide note the trader expressed confusion over the platform’s product.
The founders of the trading app said Friday they’re introducing changes and hiring an education specialist to help users navigate sophisticated trading strategies.
Alexander Kearns was struck by a train on June 12 after he had seen a negative cash balance of $730,165 in his account, that was likely the result of a glitch inside the app.
Although the details of Kearns’ trades have not been made public, there is reason to believe that his negative cash balance was merely temporarily displayed as various trades settled, and he was not in fact $730,000 in debt as he believed.
The commission-free trading app is now making changes to various aspects of its product, including improving in-app messages and emails sent to customers about multi-leg options spreads, a sophisticated style of trading involving two or more options.