How Robinhood and Covid launched thousands and thousands to the inventory market
These first-time merchants, many of their 20s and 30s, discovered the inventory market accessible. Excessive costs had stored many on the sidelines for years. As sports activities occasions had been canceled, sports activities betting was changed with inventory buying and selling.
Shares went to historic lows, and lots of younger traders opened their Robinhood app. Robinhood has been the fintech darling of Silicon Valley, based by Vladimir Tenev and Baiju Bhatt in 2013. The app has amassed 13 million consumer accounts and led the best way for zero-commission payment buying and selling. Very quickly, it has created model consciousness and recognition in contrast to that of the legacy brokerages corresponding to Charles Schwab and Constancy, or its app-first opponents like Webull and Dough.
In a Dec. 4, interview on CNBC’s “Mad Cash,” Bhatt informed Jim Cramer, “The factor that makes Robinhood actually distinctive is that it is extremely environment friendly in the best way that it operates as a result of we’re from the bottom up a know-how firm which permits us to construct actually trendy techniques which have our techniques be far more automated far more steady by simply having code execute.”
As a fintech chief and with such massive development, Robinhood has met a number of challenges. It is battling the SEC, lawsuits, and rising competitors from conventional Wall Avenue companies.
Watch the video above to learn how Robinhood plans to maintain up with the calls for of its customers — and with the rising consideration of regulators.