The beginning of 2020 created a unique moment for retail: increased market volatility, home orders and zero commission fees on all trading platforms led to an increase in activity and an increase in first-time dealers.
These first-time traders, many in their twenties and thirties, found the exchange accessible. High prices had kept many on the sidelines for years. With sporting events canceled, sports betting has been replaced by stock trading.
Stocks hit historic lows and many young investors opened their Robinhood app. Robinhood was Silicon Valley's fintech darling, founded by Vladimir Tenev and Baiju Bhatt in 2013. The app has amassed 13 million user accounts and has pioneered the trading of commission fees. In no time it has built brand awareness and popularity, unlike the old brokers like Charles Schwab and Fidelity or its app-first competitors like Webull and Dough.
A user is browsing the stocks in the Robinhood app
Users download Robinhood as it can easily start trading in seconds. For the first time ever, young investors felt they had the power to act and make their own decisions about how to invest their money. The app came from Silicon Valley, not Wall Street, and its smooth user interface and "playful" features quickly caught young, first-time stock traders.
In an interview on CNBC's Mad Money on December 4th, Bhatt said to Jim Cramer, "What makes Robinhood really unique is that it works incredibly efficiently because we're a technology company from the ground up, that allows us to To create really modern systems where our systems are much more automated and stable just by running code. "
As a leading fintech provider and with such rapid growth, Robinhood has overcome many challenges. It fights the SEC, lawsuits, and growing competition from traditional Wall Street firms.
Watch the video above to find out how Robinhood is keeping up with the demands of its users – and with the growing attention of regulators.