Robinhood Markets Inc. is a U.S. based financial services company founded in 2013 and headquartered in Palo Alto, California. The Robinhood smartphone app allows individuals to invest in publicly traded companies and exchange-traded funds listed on U.S. exchanges without paying a commission.
The firm was founded by Vladimir Tenev and Baiju Bhatt who had previously built high-frequency trading platforms for financial institutions in New York City. Tenev and Bhatt realized that high-frequency traders and electronic trading firms pay effectively nothing to place trades on the market. This inspired Tenev and Bhatt to bring existing technology to the retail brokerage market with Robinhood, a commission free stock brokerage. As of March 2016, it has nearly one million customers.
Robinhood is a mobile-first stock brokerage for iPhone, Apple Watch, and Android, allowing customers to buy and sell stocks on U.S. exchanges with zero commissions.
As of May 2015, the firm is the only major brokerage to offer $0 trading commissions for U.S. listed stocks as well as $0 account minimums.
The firm is a FINRA-approved broker-dealer, registered with the U.S. Securities and Exchange Commission,and is a member of the Securities Investor Protection Corporation (SIPC).
Robinhood launched out of stealth on the crowdsourced technology news website Hacker News, leading to articles about the company in TechCrunch, PandoDaily, VentureBeat, TheStreet and others. Initially the firm had a waiting list, and in under 30 days there were 100,000 signups. In mid-to-late February of 2014, co-founders Baiju Bhatt and Vladimir Tenev were on CNBC and Bloomberg TV.
By September 2014, the waiting list had reached 500,000 people. In March 2015, the company announced those still on the waitlist could create accounts and any U.S. residents, 18 and older, could apply for an account.
Eighty percent of the firm's current customers belong to the demographic "millennials" (people between the ages 18 and 29, and the current average customer age is 26). Fifty percent of users who have made a trade use the app daily and 90 percent come back to the app weekly.
Robinhood has raised a total of $66 million in venture capital funding.
It received $3 million in seed capital from Google Ventures, Andreessen Horowitz, Index Ventures, IT Ventures, Social Leverage, and Elefund with several angels. It announced it had raised an additional $13 million in Series A funding in September 2014. Jan Hammer of Index Ventures led the round and joined the Robinhood board. Also joining the round were Ribbit Capital; Howard Lindzon, co-founder of StockTwits and general partner at Social Leverage; Aaron Levie, founder of Box; Dave Morin, founder of Path; Jared Leto; Snoop Dogg; and Nasir Jones of QueensBridge Venture Partners.
It raised an additional $50 million in Series B funding in May 2015, led by New Enterprise Associates (NEA). Existing investors Index Ventures, Ribbit Capital and Social Leverage joined the round, along with new investor Vaizra Investments. As part of the financing, NEA General Partner Kittu Kolluri joined the Board of Directors.
|Trading Platforms||Robinhood Mobile Platform, Robinhood Gold Mobile Platform|
|Address||Palo Alto, California, USA|
Submitted usual info to open a Robinhood account and got an email back REQUIRING I UNFREEZE MY CREDIT. Apparently they ran a credit check without my consent and found they couldn't because I had frozen my credit. They say they could not verify my identity with the social security # provided. Baloney. If you had a problem with a social security number wouldn't you email and say "Perhaps there was an input error, would you provide your ss number again?" Instead, they ran an unauthorized credit check? I'm not asking for credit. What kind of SCAM IS ROBINHOOD PULLING? Getting info to send you an unasked for credit card? Setting you up for margin trades? Would people open accounts on Robinhood if they knew credit checks were being run on them? Obviously you would never know unless you had frozen your credit. This routine SCAM has ramifications that the public has yet to feel. BEWARE.
ROBINHOOD uses trade delay in the market to to capitalize profit. they do not make you aware of any trade delay so you blindly buy stock at a different price that what is shown on their app.
share with all your Friends,Family colleague protect those you love
Can you trade Options on Robbinhood ?
looking to establish a "level 2" brokerage account - never traded stocks always commodities etc so I'm plowing new ground & looking for suggestions
I've been using Robinhood for over 6 months now with minimal problems besides the waiting 4-5 days to access funds after selling a stock (which you can kind of manage with enough money in your acct where as you sell one stock you have the money from another sale available). But recently, I upgraded to Robinhood instant. Today, I sold one of my more volatile stocks thinking it would go down due to Brexit, but it was basically unaffected. Realizing this, I decided I would just buy back in. Robin hood would not let me because they said that I had already sold a volatile stock that day and would not let me buy another (the same) volatile stock until the next trading day (Monday).... The stock went up about 12% ....
When I first installed and started trading on RobinHood I placed some "Market" orders and the order was not purchased. I called RobinHood and complained. They stated that in order to make sure an overnight order is executed, I must place orders as "Limit" orders. I have only placed "Limit" orders since that call and all the orders have executed. BUT, today I looked under my history and I received a REJECTED order. It was a very important trade and I placed the order as a "Limit" order and the order was rejected. This is going a bit too far! This company is complete trash!
I'd like to share my Robinhood experience. I'm in my 50s. I joined the Robinhood bandwagon in September 2015, and was recently upgraded to Robinhood Instant. All it took to get approved for Instant was convincing one friend to sign up with a $100.00 investment. Hint: This is what family members are for : )
Why did I join Robinhood? Because I hate paying commissions. Back in September, I was upset that my personal stock portfolio had lost significant value in 2015. Rather than make the same mistake I made in 2012 and sell too quickly, I held on to my positions, but wanted to stop looking at them every day, "hoping" they would go back up. And then I saw an advertisement for Robinhood. I did some research and convinced myself that it was legit. So I took $25K cash (with $5K profit), generated from a company buyout, out of my Fidelity account and invested a little bit of money in most of my deflated stock positions, plus a couple of new ones. I've been doing okay. My dogs are mostly recovering, and I made some good gains on two new positions. I added stop-loss orders to make sure I keep those profits when they drop again. I'd like to ask if anyone on this blog has had better success with setting trailing stops instead of stop loss orders.
When I started trading with Robinhood, I alleviated my fear that Robinhood might profit in a bad price on a market order -- they claim they don't do that -- by placing limit orders. This is a good practice anyway, and it teaches patience. I was pleasantly surprised to see a couple of my orders filled BELOW my limit price, which shows me that Robinhood is on the up and up.
However, a couple of weeks ago, someone -- either on this blog or somewhere else -- claimed that he could put money in, but couldn't take it out of Robinhood. That scared me a bit, so I gave it a test on June 9. I'm happy to report that my $100.00 cash withdrawal appeared in my checking account on June 10, even though Robinhood still reported it as pending, with estimated availability on June 15 (4 business days). I think this is an artifact of the old system, prior to Instant. The same thing happens when I add money to Robinhood. Even though it shows up on my trading platform as available, the automated message tells me it will take 4 business days to post.
As for how Robinhood makes money with "zero" commissions? Everyone wants to know. Let me add my own speculation. I think they do make some money on the float, like in the movie, "Office Space". I realize it's fiction, but there's some truth embedded in there too. More importantly, Robinhood wants to setup a platform for discount margin trading. That's how they'll remain profitable enough to stay in business, which is what all their venture capitalists are counting on. So, let's go Robinhood! Making your platform available in China may give you bragging rights, but China isn't going to let you get rich off of them. Get that margin trading platform going ASAP!
Robinhood does not make sales immediately reusable -yet-. That's called Robinhood Instant, and is currently not available for all users. Seems to be in beta. So unless you get access to Instant, you do still have the 3 day waiting period for your sale funds to become buying power again. The instant buying power of funds transferred from a bank account under $1000 is accurate.
Fantastic app though. The fact that the real time statistics are available for free isn't mentioned as something important by many reviews of it, but having it right there and having such a comprehensive list of stocks you can add to or take from to watch is really quite nice. Makes having a second app for that same purpose irrelevant. Not to mention this isn't some ad ridden crap. It's a beautifully streamlined piece of art, from the app perspective. You just put in your pin and you're in and ready to go, I can tap the app and make a trade in under 30 seconds if I need to.
On the other hand, on my phone, I can't even get Snapchat to be up and functional in that same amount of time. Robinhood is incredibly well coded.
Once I decide I want transfer some of my funds back into my linked bank account, Is there a fee of $75? Is there also a fee to transfer money to my Robinhood account?
A very good idea of free access and no fees! But it rather suspicious. The only free cheese is in the mousetrap.
There is a similar broker - freetrade: https://freetrade.io/?kid=BGA76 It also has zero comissions.