Author: Aaron Webber
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Robinhood Markets, Inc., also known as Robinhood, is an American financial company based in California. It is best known for its electronic trading platform available on smartphones that allows users to engage in commission-free trades of stocks, cryptocurrencies, individual retirement accounts, and exchange-traded funds.
The Robinhood app launched in 2015 and has grown to over 10 million active monthly users in August of 2023. The largest population of Robinhood users is the millennial generation and first-time traders, being attracted to the platform by its no-commission trades, ease of use, and simple and straightforward design.
In order to offer commission-free trading, Robinhood makes money through interest on its customers’ cash balances, selling order information to high-frequency trading groups and organizations, and the rates on margin lending. The lower barrier to entry allowed millions of young people who had not considered trading stocks to experiment with the markets. Robinhood currently gives new users their first stock for free so they can begin trading immediately.
The main features that contribute to Robinhood’s success include:
- Commission-free trading of ETFs, options, and stocks in whole or partial shares
- Commission-free crypto trading and digital currency management
- 24-hour trading (m-f)
- 24/7 customer service
- The Robinhood Cash Card: a debit card that helps users invest extra money when they make purchases
- High-level financial analysis and market reports to help you invest smarter and maximize your earnings
- A 1% match for every contribution to your IRA account (with a 3% match for Robinhood Gold accounts)
- A 3% bonus for every 401(k) rollover or IRA transfer to Robinhood.
- A generous referral system, offering account funds for every referral.
- The Robinhood Gold account which allows for lower margin trading rates, more in-depth financial analysis, and more.
Read our stories below for reviews, in-depth guides, and more about Robinhood.
Robinhood Stories
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News and Analysis
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