Robinhood

From CryptoMarketsWiki
Jump to: navigation, search
WedbushFutures-200px.gif


Robinhood
Robinhood.png
Founded 2013
Headquarters Menlo Park, California
Key People Baiju Bhatt (Founder, CEO); Vlad Tenev (Co-founder)
Employees 200-500
Products Robinhood trading app
Twitter @robinhoodapp
LinkedIn Profile
Facebook robinhoodapp
Website Robinhood Home
Blog Robinhood Blog

Robinhood is a fintech company founded in 2013. Its primary product is an investment app that offers trading services for stocks, options, ETFs, and cryptocurrency.[1][2]

Overview

Robinhood's investment platform is protected by the SIPC, which insures its investors up to $500,000.[3] It is also regulated by FINRA and is listed on FINRA's BrokerCheck.[4]

The app offers its trading services free of commission fees. In place of these fees, the company makes its revenue by selling premium services, selling order flow to stock exchanges, and by charging interest on funds users keep in their Robinhood accounts.[5][6]

Robinhood was designed for "the next generation" of traders. On its website, it encourages new traders to learn about trading using various tools integrated into the app's user interface, such as candlestick charts, which were added in September 2018.[7][8]

In December, Robinhood launched a new feature that allowed users to essentially hold a checking account through the platform. The company said these accounts would be insured by the Securities Investor Protection Corp (SIPC). Stephen Harbeck, president and CEO of the SIPC, said in a Bloomberg interview that these accounts were not insured by the SIPC.[9]

Company History

Robinhood announced the development of its app, including the promise of "zero-commission trading," in 2013.[10] The same year, Robinhood received approval from FINRA to operate as a broker-dealer.[11] The company raised $3 million in seed funding from Index Ventures. The following year, the company raised an additional $13 million from investors; notable investors besides Index Ventures included Stockwits co-founder Howard Lindzon, Jared Leto, and Snoop Dogg.[12]

Robinhood's CEO, Baiju Bhatt, said at a public TechCrunch Disrupt SF talk on September 6, 2018 that the company had begun the processes of looking for a CFO to expand their business, as well as undergoing audits from the SEC and FINRA. Around the same time, the company announced plans to launch an IPO.

In September 2018, Robinhood had over 5 million worldwide users.[13]

New York Trading Licenses

In January 2019, the New York State Department of Financial Services (DFS) gave Robinhood official approval to trade cryptocurrency. The DFS also gave Robinhood license to carry out money transfers.[14][15]

References