Robinhood rises after the SEC report that states payment for order flow is not being banned

Shares of Robinhood increased following the news that they would not be banned from making payments for order flow.

Bloomberg News reported that the SEC might not ban payment for order flow, potentially making changes that would alter how profitable it is.

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Robinhood soared in response to the news that they won't be eradicated.

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Robinhood and other brokerage firms typically receive payment for order flow, which allow these companies to provide free trading with no upfront cost.

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Gary Gensler, the SEC commissioner, is critical of the practice wherein market makers get special deals on brokerage services, which can affect the execution price of customers' trades.

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When market prices were based on a commission, they were not always what you wanted. Likewise, other costs and providers are not necessarily in your best interest.

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After the report from CNBC, Robinhood climbed to its highest price yet.

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