![]() ![]() Investors can trade stocks, bonds, ETFs, crypto and more (they can also use the gifting feature to send bitcoin, ether and other tokens to others). If you do some proper research, Robinhood can, at the very least, serve as a good introduction to investing. Some critics say the way Robinhood makes investing akin to a game is dangerous - since overtrading can have serious consequences - and the company has made some adjustments in the face of that criticism, like getting rid of its digital confetti.īut Robinhood is not limited to Redditors taking on risky investment moves. It’s been known to target younger investors specifically: last fall, the company gave college students $15 to trade if they opened a new account. The app is popular among young, first-time investors. Here's everything you need to know about the trendy (and controversial) financial app - including whether or not you should use it. “And while trading individual stocks IS one way to build wealth, that’s not where most young people should be starting.” “It’s made many people think, ‘this is how you invest, this is how you build wealth,’” Falcone says. The platform’s model allows users to make trades at no cost, but according to financial planner Tara Falcone, that comes at a steep price. (Robinhood uses a practice called “payment order flow," in which a brokerage firm sends customer orders to high-speed trading firms in return for cash payments). In December 2020, Robinhood was fined $65 million by the Securities and Exchange Commission (SEC) for allegedly misleading customers about one of its revenue sources. In early 2021, Robinhood curtailed users’ ability to trade certain meme stocks like GameStop and AMC, generating the wrath of U.S. In June of 2021, the company faced the largest financial penalty ever issued by the Financial Industry Regulatory Authority, agreeing to pay $70 million for various regulatory allegations, including system outages, misleading users and allowing customers to trade options - a risky investing move - when it was not appropriate to do so. Over the years, Robinhood has seen its fair share of criticism. Many trading platforms, including Robinhood, have seen a decrease in trading activity. The Federal Reserve has been hiking interest rates to tamp down inflation, which has weighed on stocks, bonds, crypto and other assets. While the company's revenue hit $565 million in the second quarter of 2021- thanks in part to a surge in crypto trading - its most recent earnings report from the quarter that ended in December 2022 showed just $380 million in revenue.įinancial markets have struggled since early 2022. ![]() Robinhood went public in July 2021, trading on the Nasdaq under the ticker symbol HOOD. The Silicon Valley darling - which launched in 2013 and grew its following amid an investing surge and cryptocurrency boom during the COVID-19 pandemic - is a commission-free trading platform, meaning users can invest in everything from exchange-traded funds (ETFs) to Dogecoin without going through a traditional brokerage. The investing app is a favorite among everyday traders who congregate in online forums like Reddit’s r/WallStreetBets, and currently has around 11.4 million monthly active users. If you are at all interested in investing, you’ve almost certainly heard of Robinhood. Start investing with a $10 sign-up bonus for opening an account and linking your bank account See expert ratings of stocks and funds to help inform your investment choices You can learn investing in clear and simple language For a limited time only, make a deposit and they'll double it up to $75 ![]()
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