Robinhood Financial
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| Basic information | |
|---|---|
| Founded | 2013 |
| Legal structure | Subsidiary |
| Industry | Financial Services |
| Official website | http://robinhood.com/ |
Background
Robinhood Financial, LLC, is a wholly-owned subsidiary of Robinhood Markets, Inc. The US app based brokerage company offers commission free stock and ETF trading ( exchange-traded funds ). Founded in 2013 by two former Stanford University room mates, the app was launched in 2015. Robinhood's mission is to democratize finance for all.
- Democratizing: Removing fees and simplifying investing for retail investors.[1]
- Accessibility: Offering fractional shares, a mobile-first platform, and educational resources.[1]
- Inclusivity: Targeted young and less wealthy investors that historically were excluded from traditional brokerage services.[2]
Public sphere
January 2021 restrictions on customer trading
On January 28, 2021, Robinhood systems restricted customer trading in certain securities for companies with heightened stock volatility,[3] including GameStop,[4] AMC Entertainment, and Bed Bath and Beyond. CNBC reported that the brokerage firm Interactive Brokers (IB) also imposed trading restrictions on the same day.[5] Additionally, CNBC noted that other brokerages, such as TD Ameritrade and Charles Schwab, had increased margin requirements the day before—a move described as less 'drastic' compared to outright trading halts.[6]
Customers should be aware that brokerages, including Robinhood, may take similar actions in the future. This poses a risk of economic harm, as investors could be artificially prevented from entering or executing trades during critical market movements.
References
- ↑ 1.0 1.1 DCF Team, The. "Mission Statement, Vision, & Core Values of Robinhood Markets, Inc. (HOOD)". dcfmodeling.com.
- ↑ Boorstin, Julia (May 25, 2021). "Robinhood's disruptive force: The good, the bad and the controversy". CNBC.com.
- ↑ "Keeping Customers Informed Through Market Volatility". Robinhood. 28 Jan 2021. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Fitzgerald, Maggie (28 Jan 2021). "Robinhood restricts trading in GameStop, other names involved in frenzy". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Fitzgerald, Maggie (28 Jan 2021). "Interactive Brokers restricted GameStop trading to protect the market, says Chairman Peterffy". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link) - ↑ Stevens, Pippa (28 Jan 2021). "GameStop shares jump 68% on Friday, bringing gains for the week to 400%". CNBC. Retrieved 5 Apr 2025.
{{cite web}}: CS1 maint: url-status (link)