Robinhood Markets, Inc. is a stock brokerage firm that lets customers invest in cryptocurrencies, stocks, options, and ETFs with zero commission. It is an American financial services company situated in Menlo Park, California. The company is well known for its commission-free trades of cryptocurrencies, stocks, and exchange-traded funds via a mobile application. Robinhood brokerage firm was founded by Baiju Bhatt, and Vladimir Tenev in April 2013.
The founder members of the company were producing a high-frequency trading platform for financial institutions in New York City. The main objective of the company is to provide access to everyone to financial markets where people can invest at their own pace and on their terms. The idea to make a financial platform that allows people to trade in stocks, cryptocurrencies and Options with zero commission came after Vladimir noted that most of the financial institutions are charging customers for trading.
Robinhood introduced its mobile app at LA Hacks for the first on AppStore in December 2014, and it was officially launched in March 2015. As per the latest data, Robinhood has more than 31 million users. The company is registered with U.S. Securities and Exchange Commission, and it is a FINRA regulated broker-dealer. The revenue of the firm comes from selling order information to high-frequency traders, interest earned on customers’ cash balance, and margin lending.
Robinhood: An Overview
|Name of the Company||Robinhood Markets, Inc.|
|Founded||18th April 2013|
|Name of the Founders||Vladimir Tenev and Baiju Bhatt|
|Headquarters at||Menlo Park, California, U.S.|
|Key services||Electronic trading platform, Stockbroker|
|Number of employees||More than 1300|
|Stock Symbol||NASDAQ: HOOD|
|Subsidiaries||Robinhood Crypto, LLC Robinhood Financial, LLC Robinhood Securities, LLC|
Robinhood Cryptocurrency Trading
Robinhood offers trading in cryptocurrency, equity, and options as well as cash management accounts. The company lets people access the financial market, and provide equal opportunities for all who want to trade or invest online.
Robinhood announced free cryptocurrency trading on 25th January 2018. It offers commission-free trading while other similar platforms are charging up to 4%. Initially, the company started trading in Bitcoin and Ethereum to the users in Massachusetts, California, Montana, and Missouri. Now, the company has expanded its cryptocurrencies trading business to most of the cities in the US.
The Bitcoin Cash, Ethereum Classic, Dogecoin, and Litecoin were introduced later. Services like a cryptocurrency wallet and deposits or withdrawals of cryptocurrencies are not available on Robinhood. However, the company is planning to add these features in the coming days.
Banking, Stock and ETF Trading with Robinhood
Robinhood lets you trade in Stock and ETF and provides banking or Cash management services also. The users need to create an account on the Robinhood platform for availing the services like buying and selling stocks, ETF trading, paying bills and sending checks, etc. After creating an account, users can invest in stocks or cryptocurrencies. There is no commission fee on purchasing or selling cryptocurrency on Robinhood. On the other hand, most crypto exchanges and financial institutions are charging users up to 4% brokerage.
Robinhood Sign Up Process
The users can set up an account Robinhood platform to invest in cryptocurrencies and stocks. The crypto exchange charge is zero, while other exchanges take 4% and earn huge money. One needs to go through the sign-up procedure first to create an account on the Robinhood platform:
- Go to the official website of the company, i.e. robinhood.com.
- Locate the Sign-Up button at the right corner of the web page.
- Tap the same and open the sign-up page.
- Enter your legal name as per the government ID.
- First name and last name must match with your government ID.
- Enter e-mail address in the given field.
- Set your password and ensure it should be strong enough.
- Tap the continue button and follow the prompts.
- The user may be asked to furnish information like mailing address and government ID details.
- Once the set-up is complete, keep your login credentials safe for future reference.
Note: The users can also set up an account on the mobile application. The process for creating an account is the same with PC or mobile.
Robinhood Login Process
- Visit the official website, i.e. robinhood.com.
- Click on the Login button.
- A login page will open.
- Enter the e-mail address and password.
- Tap the ‘Sign In’ button, then your account will open.
- If you forgot your password, recover the same by clicking on the ‘Forgot your password?’ link.
Who is eligible to open a Robinhood Account?
- The applicants must be at least 18 years or older.
- One must have a U.S. residential identity.
- One who has a valid Social Security Number
- Permanent residence proof is required to open an account.
- The company may grant an account to the US Military official stationed abroad.
Products of the Robinhood
Robinhood deals in different products where users can invest in stocks, cryptocurrencies, and Options trading, etc. The product of the are as under:
The users can easily buy or sell Crypto on Robinhood, and interestingly, there is no charge. Other crypto exchange platforms like Coinbase, Gemini, and Venmo are charging up to 3%.
- Stocks & Funds
The company aims to democratize finance for all. People can buy stocks of the different companies and sell accordingly to gain profit. The stock market is the place where both buyers and sellers come together, and people take part in share trading.
Users can trade in Options with no commission fees and no per contract fees. However, users should have a basic understanding of Options trading.
Robinhood Gold allows users to get access research reports and advanced market data, larger instant deposits, and borrow money at the 2.5% interest rate subject to the eligibility -all for $5 per month. There is instant access to $5K to $50K when you make a deposit, based on your account balance. Access to the 1700 stock research, Level II market data, and access to the margin investing.
- Cash Management
Users can invest, spend, and earn interest with Cash Management on Robinhood. Pay bill of groceries, rent and all other market opportunities in easy steps. Earn 0.30% APY interest on your un-invested cash while having complete access to it. There is no hidden fees, no minimum balance, transfer fee, and overdrafts.
Benefits of using Robinhood
- The fast sign up process let people start investing early. Users can access their Robinhood account within a few minutes.
- Users can create an account and buy crypto in 5 minutes without any commission fees.
- The users can start by buying as little as $1. There is no requirement to purchase the whole coin.
- One can trade in Bitcoin, Dogecoin, Ethereum, Ethereum Classic, Bitcoin SV, and Bitcoin Cash.
- The company provides full protection to your investments. There is a top security feature of the industry.
- Cold storage for the vast majority of customers’ coins.
- Insurance against crime, theft, and cybersecurity breaches.