TradeZero America, Inc. agreed to pay a $250,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Between July 2020 and October 2022, TradeZero America paid "influencers" on social media sites to promote the company in social media posts, which resulted in the dissemination of unfair, unbalanced, exaggerated, or promissory information on behalf of the company. Consequently, TradeZero America violated FINRA Rules 2210(d)(1) and 2010.

During the same period, TradeZero America did not review or retain the influencers' videos posted on social media platforms before their publication, nor did it review or retain the influencers' posts on online interactive electronic forums.

TradeZero America also failed to establish, maintain, and enforce a system, including written supervisory procedures (WSP), to reasonably supervise the retail communications disseminated by its influencers on behalf of the company. Thus, the company violated Section 17(a) of the Securities Exchange Act of 1934, Rule 17a-4(b)(4) of the Exchange Act, and FINRA Rules 2210(b), 4511, 3110, and 2010.

Additionally, between January 2020 and January 2022, TradeZero America did not accurately disclose the extent to which the company would use customers' non-public personal information in the privacy notices provided to clients, violating Rule S-P of the Securities Exchange Act of 1934, Rule 4 (17 CFR § 248.4), and FINRA Rule 2010.

In addition to the fine, the company also agreed to a censure.