Robinhood Relaxes Some Trading Curbs in Tricky Balancing Act

Robinhood Markets is finding it hard to make anyone happy.

The online brokerage pared back trading curbs imposed in the wake of a Reddit-fueled market frenzy, but as the tumult entered a second week, that hasn’t quelled customers’ suspicions of its motives. And with eyes across Wall Street on the firm after it raised fresh capital, the coming days will test whether the popular trading app is able to protect its users, trading partners and itself.

Chief Executive Officer Vlad Tenev has tried in public appearances -- including with Elon Musk -- to explain why Robinhood halted trading in popular ...