Robinhood (company)
Robinhood was founded in April 2013 by Vladimir Tenev and Baiju Bhatt. The company’s revenue comes from interest earned on customers’ cash balances, selling order information to high-speed traders and margin lending. As of 2020, Robinhood had 13 million users. Robinhood raised a total of USD 539 million in venture capital funding.
About Robinhood (company) in brief
Robinhood was founded in April 2013 by Vladimir Tenev and Baiju Bhatt, who had previously built high-frequency trading platforms for financial institutions in New York City. The company’s revenue comes from three main sources: interest earned on customers’ cash balances, selling order information to high-speed traders and margin lending. As of 2020, Robinhood had 13 million users. Robinhood raised a total of USD 539 million in venture capital funding, with the last valuation at USD 5. 6 billion, up from their previous valuation of USD 1. 3 billion. During the 2020 stock market crash,Robinhood trading increased. The subsequent market rise was partially attributed to Robinhood traders, but a study indicated that Robin Hood traders had little daily impact on major shares. In May 2020, it was reported that Robinhood was in talks to obtain a U.S. banking license from the United States, claiming the company is the first banking company to offer commission-free trading of Bitcoin and Etherum to users in California, Massachusetts, Missouri, and Montana. In November 2019, the company announced its expansion to the United Kingdom. In January 2019, several major brokerages such as E-Trade, TD Ameritrade, and Charles Schwab announced in quick succession they were eliminating trading fees. The waitlist had grown to more than 1,250,000 by the end of the day on January 25, 2018, and Robinhood announced a waitlist for automatic dividend reinvestment was introduced in January 2019.
In February 2018, the firm announced that it would be moving its headquarters from Palo Alto to the former headquarters of Sunset magazine in Menlo Park, California. In August 2017, the. company began offering free stocks in exchange for referring new users. In September 2016 they launched Robinhood Gold, a premium subscription plan that offers up to USD 50,000 in instant deposits, margin trading, and more market analytics. In May 2018, Robinhood expanded its trading platform to New Mexico, Wisconsin and Montana, and in June 2018, it reported that it was in negotiations with the Bank of Mexico to obtain the company’s license to trade Bitcoin and other cryptocurrencies. The firm has prohibited its users from purchasing some high-risk penny stocks, such as banning purchases of Helios and Matheson Analytics, the owner of MoviePass, in August 2018. Services not offered include retirement accounts, mutual funds and bonds. In October 2019, Charles R. Schwab said it was within its intentions to eventually eliminate trading fees, as the firm historically had historically been a discount broker.
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This page is based on the article Robinhood (company) published in Wikipedia (as of Feb. 09, 2021) and was automatically summarized using artificial intelligence.
