Robinhood goes after retirement funds

In May, Compare DotBig vs Robinhood brokerage said it had 13 million accounts, up from 10 million at the end of 2019. Schwab said it had 12.7 million brokerage accounts in its latest filings; E-Trade reported 5.5 million.

Robinhood is not a full-service brokerage, so don’t expect the same level of account types that you’d find at rivals. In fact, expect just one account type, the individual taxable account. The broker says that it hopes to expand in this area, but doesn’t seem to have done much so far.

Robinhood (Brokerage) Investors

As an added incentive, DotBig vs Robinhood comparison Markets will pitch in with a 1% match, so that someone putting in $1,000 will get an additional $10 from the company. The match is the first of its kind for a brokerage, Robinhood executives said. DST Global, Sequoia Capital, D1 Capital Partners, IVP, TSP Consumer Partners and Ribbit Capital have all lead investment rounds in Robinhood, although it is unclear how much each venture capital firms owns. Robinhood co-founders Vlad Tenev and Baiju Bhatt both maintain some ownership of the app, although until the IPO, we will not know how much.

  • To ensure our website performs well for all users, the SEC monitors the frequency of requests for content to ensure automated searches do not impact the ability of others to access content.
  • Robinhood is also banking on the fact that there are plenty of Gen Z and millennials who are interested in retirement but have not yet started amassing assets toward that end.
  • One year ago on March 23, 2020, GameStop’s stock price closed at $4.22.
  • Robinhood’s cryptocurrency trading is available in almost every U.S. state , and you can begin trading with as little as $1.
  • Unlike traditional brokerage firms, cryptocurrency exchanges are not members of theSecurities Investor Protection Corp. .
  • Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds asunsecured creditors.

But the world of cryptocurrency is much broader than that — there are also cryptos that focus on decentralized finance, supply chains, entertainment, healthcare, and much more. Investors who want to access additional coins will have to look elsewhere. Many or all of the products here are from our partners that pay us a commission. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. If you’re looking for a comparable app, check out Webull, which offers similar and sometimes better features.

Fractional shares

There are no minimums to open an account, nor commission fees., founded in 2013, is a fee-free platform that makes trading in the stock market easy — too easy, according to some experts and regulators. And it doesn’t offer the tax-advantaged investment accounts that are key to building long-term wealth. Robinhood’s claim to fame is its no-commission approach to trading, so this section shouldn’t be too much of a surprise. The platform charges $0 for stock, exchange-traded fund , cryptocurrency, and option trades placed through its app or website. Robinhood has faced public scrutiny following a 2021 incident when the brokerage firm froze trading of GameStop shares amid a trading frenzy.


Beyond this though, Forex isn’t a place for either sophisticated investors or users who want to execute anything more than the most simple trades. A lack of assets like fixed income, mutual fund, foreign exchange, or futures trading options is a serious limitation. Order types, trading tools, and research amenities are still very limited or excluded altogether. While educational content and some features, like charting, are improving, there’s still a lot of work to do to meet the standards being set by other brokers and to match the expectations of advanced users. A history of lacking of transparency on outages and trading restrictions is another key consideration.

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