Ten years ago, while the ripples of the 2008 recession were still being felt, there was a growing desire among the general public to have a more vested interest and exposure to the world of investing. People wanted to take control of their financial future and have a say in where their money was going. This is where Robinhood Markets Inc. HOOD, one of the first companies to help successfully democratize finance, came into the picture.
Starting in 2013 with the beta version of their app, which introduced commission-free stock trading, the company seems to have quickly gained attention. In subsequent years, it launched premium offerings such as Robinhood Gold, expanded its user base and introduced features like commission-free options trading and cryptocurrency trading.
Robinhood’s mission has always been clear – to provide accessible investing opportunities for all, as seems evident from the company’s name. It has focused on actively engaging with traders and building products that not only meet their needs but also bring along everyone else in the process. Over the years, Robinhood has introduced innovative products that have furthered its quest to make investing accessible to the masses.
A prime example of this is Robinhood Retirement, the first Individual Retirement Account (IRA) with a 1% match, where no employee contribution is necessary. This initiative helps ensure that retirement planning is achievable and accessible to all, regardless of their income or employment status. Additionally, Robinhood Gold offers customers 4.9% interest on their uninvested brokerage cash, enabling them to earn money on their idle funds.
Another example of their commitment to democratizing finance was the launch of a fractional shares offering in 2019, enabling customers to buy fractions of stocks and ETFs for as little as $1.
Despite their achievements so far, Robinhood is far from finished. The company continues to disrupt various parts of the financial system by introducing new platforms and initiatives. For instance, its recent acquisition of X1 presents an opportunity to provide its customers with access to credit. Robinhood also has plans to introduce futures and advisory services, further expanding its range of offerings.
The company’s business seems to be proving fruitful. They currently boast over 325,000 funded IRA accounts, with Robinhood Retirement managing over $1 billion in assets. It’s worth noting that the majority of Robinhood customers use the platform for long-term investing rather than active trading. Robinhood is popular among younger generations as well, highlighting its commitment to expanding investment opportunities to more people. Currently, the median age of Robinhood customers is 33.
Robinhood’s impact is not limited to the United States alone. Its self-custody wallet, Robinhood Wallet, has gained traction internationally. Since its launch earlier this year, it has been downloaded hundreds of thousands of times in over 140 countries, demonstrating a global demand for accessible financial services.
The year 2021 marked multiple milestones for Robinhood. The company launched IPO Access, allowing users to buy shares at the initial public offering price. 2021 was also the year when Robinhood Markets, Inc. became a publicly traded company listed on Nasdaq, solidifying its position in the market.
In the following years, Robinhood continued to innovate. The company introduced features like Stock Lending, allowing customers to lend their fully paid securities, and launched the Robinhood Cash Card, a debit card linked to a spending account.
In recent years, Robinhood has made significant strides in diversifying its product portfolio. It launched Robinhood Retirement for long-term planning, expanded its international presence with the introduction of Robinhood Wallet, and introduced the disruptive Robinhood 24-Hour Market, which allows users to trade popular ETFs and stocks 24 hours a day, five days a week.
With the formation of Sherwood Media, LLC, and the announcement of Robinhood Connect, which simplifies funding Web3 wallets for Robinhood customers, it is clear that Robinhood’s ambitions extend far beyond traditional finance.
Robinhood has played a pivotal role in helping democratize finance over the past ten years. Through its innovative products, commitment to accessibility, and continuous disruption of the financial system, the company has empowered individuals to take control of their financial futures. It seems evident that Robinhood remains dedicated to expanding globally and continuing to push boundaries in the quest for broader financial inclusion.
Featured photo by Aditya Vyas on Unsplash.
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Image and article originally from www.benzinga.com. Read the original article here.