![]() ![]() Volume always reflects consolidated markets. ![]() During market hours, the real-time Cboe BZX price displays and new trade updates are updated on the page (as indicated by a "flash"). Real-time prices are provided by Cboe BZX Exchange on individual U.S. Now Robinhood wants to steal stock trading from the rich and give it to the poor.The Quote Overview page gives you a snapshot view for a specific symbol. Technology has already democratized publishing, funding, and so many more industries. The idea that its customers won’t die off anytime soon must be reassuring for the startup.īhatt also thinks that “Participation in the economy through stock ownership is a pretty important way of keeping the divide between the haves and have-nots from growing.” When it comes to learning about money, Tenev says “the earlier someone gets started the better.” It helps that Robinhood’s average user age is 27, compared to E*Trade’s 55. If Robinhood catches on, it could not only get a younger generation playing the market, it could start them on the road to financial expertise that will serve them the rest of their lives. But as for mobile-first stock trading, Bhatt and Tenev are the only ones who’ve successfully jumped through the regulatory hoops and weathered the engineering challenges to get to market. Yahoo’s Finance app, Scutify, StockTouch, and websites like Google Finance are Robinhood’s biggest competitors on the monitoring side. For now, though, Bhatt says the company’s biggest worry is getting people who’ve waitlisted for a year onboarded as quickly as possible without any snafus that could hurt its credibility. And if it can aggregate enough transactions, stock exchanges will pay it for its trade volume to increase the liquidity of their marketplaces. It will also charge its own interest rate if you buy on margin while waiting for cash from stocks you’ve sold to clear into your account, or buy on credit from Robinhood.ĭown the line, the startup could sell API access to its system. But the answer is first and foremost that Robinhood will earn standard interest on funds you add to your account. When I asked for specifics on how Robinhood will make money, the founders laughed, saying when you move money around, it never seems to tough to earn some for yourself. The whole app uses colors to quickly convey concepts like a white background for when the markets are open for trading and a black background when they’re closed, or green stock names for winners and red names for losers on the day. Selling and cashing out is that simple too. If you want to buy one, just tap ‘buy’, then slide up to confirm. A quick glance will tell you if they’re up or down and by how much, while tapping in shows detailed stats and a price timeline you can scrub across. Once in Robinhood, you can add stocks to your homepage watch list. Go ahead and trade $2 of battered Zynga stock if you want. ![]() And there’s no minimum amount of money you have to add. For added assurance, your assets worth up to $500,000 are protected by the Securities And Exchange Commission. To make adding funds easy, you can sign in with your name and password for any of nine top banks rather than having to fiddle with checking account numbers and a multi-day verification process. When you sign up, you’ll set an in-app password or Touch ID to make sure no stocks are traded without your consent. Those metrics told the team the app was finally ready for the public. Metrics showed people who made at least one trade on average checked the app 20X per week, made four trades their first month, and 90% were likely to recommend Robinhood to a friend. The two founders have spent the time since scoring the capital to close every security hole they could and test the app with a few thousand users. Our solution has been hiring the brightest minds” Tenev tells me. “Security is basically a computer science problem. That money afforded it top security and infrastructure experts from Stanford, MIT, and CalTech that worked at Google, Facebook, and Palantir. So the startup got serious and raised $16 million from top investors like Google Ventures, Andreessen Horowitz, Index Ventures as well as savvy upstarts like Rothenberg Ventures and Slow Ventures. Why’s it taken so long to launch? Because Tenev and Bhatt knew that if they messed up on security or reliability, screwing with people’s money, no one would trust Robinhood to hold their funds. Robinhood founders Baiju Bhatt (left) and Vlad Tenev (right)īut that was a year ago. ![]()
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