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'''Robinhood Markets, Inc.''' is an American financial services company headquartered in [[Menlo Park, California]]. The company provides an [[electronic trading platform]] accessible via [[mobile app]] that facilitates [[commission (remuneration)|commission]]-free trades of [[stock]]s, [[exchange-traded fund]]s and [[cryptocurrency]], as well as [[cryptocurrency wallet]]s, [[credit card]]s and other banking services.<ref name=10K/> The company's revenue comes primarily from [[payment for order flow]] (53% of Q1 2024 revenues), net interest income (primarily from [[Margin (finance)|margin]] lending, interest earned on customers' cash balances, and credit cards; 41% of Q1 2024 revenues), and [[subscription fee]]s (6% of Q1 2024 revenues).<ref name=earnings/><ref name=10K/> The company has 23.9 million funded customers, 13.7 million monthly active users, and $130 billion in assets under custody.<ref name=earnings>{{Cite press release | url=https://www.globenewswire.com/en/news-release/2024/05/08/2878177/0/en/Robinhood-Reports-First-Quarter-2024-Results.html | title=Robinhood Reports First Quarter 2024 Results | publisher=[[Globe Newswire]] | date=May 8, 2024}}</ref>
The company is named after [[Robin Hood]], based on its mission to "provide everyone with access to the financial markets, not just the wealthy", with no commissions or minimum account balances.<ref name=forget>{{Cite news | url=https://www.forbes.com/sites/halahtouryalai/2014/02/26/forget-10-trades-meet-robinhood-new-brokerage-targets-millennials-with-little-cash/ | last=Touryalai | first=Halah | title=Forget $10 Trades, Meet Robinhood: New Brokerage Targets Millennials With Little Cash | work=[[Forbes]] | date=February 26, 2014 | archive-url=https://web.archive.org/web/20140912013656/http://www.forbes.com/sites/halahtouryalai/2014/02/26/forget-10-trades-meet-robinhood-new-brokerage-targets-millennials-with-little-cash/ | archive-date=September 12, 2014 | url-status=live}}</ref><ref name=behind>{{Cite news | url=https://www.thestreet.com/investing/behind-label-robinhood | title=Behind The Label: Robinhood | first=KEVIN | last=LEVICK | work=[[TheStreet.com]] | date=August 6, 2021}}</ref> The company has been credited for forcing the elimination of trading fees by several stockbrokers.<ref>{{Cite news | url=https://techcrunch.com/2019/10/02/robinhood-e-trade-schwab-ameritrade/ | title=Lookout, Robinhood. E*Trade, Schwab, Ameritrade go zero-fee | first=Josh | last=Constine | work=[[TechCrunch]] | date=October 2, 2019}}</ref><ref>{{Cite news | last=Fitzgerald | first=Maggie | date=October 1, 2019 | title=Charles Schwab is ending commissions on stock trading and the brokerage shares are tanking | url=https://www.cnbc.com/2019/10/01/charles-schwab-is-eliminating-online-commissions-for-trading-in-us-stocks-and-etfs.html | work=[[CNBC]] | archive-url=https://web.archive.org/web/20191106150809/https://www.cnbc.com/2019/10/01/charles-schwab-is-eliminating-online-commissions-for-trading-in-us-stocks-and-etfs.html | archive-date=November 6, 2019 | url-status=live}}</ref><ref>{{Cite news | url=https://www.wsj.com/articles/charles-schwab-ending-online-trading-commissions-on-u-s-listed-products-11569935983 | last2=Beilfuss | first1=Alexander | last1=Osipovich | first2=Lisa | title=Schwab Cuts Fees on Online Stock Trades to Zero, Rattling Rivals | work=[[The Wall Street Journal]] | date=October 1, 2019 | url-access=subscription | archive-url=https://web.archive.org/web/20191105072253/https://www.wsj.com/articles/charles-schwab-ending-online-trading-commissions-on-u-s-listed-products-11569935983 | archive-date=November 5, 2019 | url-status=live}}</ref><ref>{{Cite AV media | title=Famed Investor Charles Schwab on The David Rubenstein Show | url=https://www.youtube.com/watch?v=SdF06ViElNQ | first=David | last=Rubenstein | via=[[YouTube]] | date=February 20, 2020}}</ref> Robinhood has targeted [[millennials]] as customers; in 2022, the average age of its customers was 32.<ref>{{Cite news | url=https://www.wsj.com/podcasts/google-news-update/robinhoods-new-index-gives-insight-into-younger-investors/fb35cc42-9373-4133-a1c8-996e018b432c | title=Robinhood’s New Index Gives Insight Into Younger Investors | first1=Alexander | last1=Osipovich | work=[[The Wall Street Journal]] | date=September 12, 2022}}</ref>
As the majority of the company's revenues are from [[payment for order flow]], described as a [[Kickback (bribery)|kickback]], the company has been criticized for routing orders to [[market maker]]s that pay the most instead of those that offer the best order execution. It has also been criticized for undisclosed markups on cryptocurrency transactions.<ref name=review>{{Cite web | last=Royal | first=James | title=Robinhood Review | url=https://www.bankrate.com/investing/brokerage-reviews/robinhood/ | website=[[Bankrate]]}}</ref>
==History==
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The firm showcased its app publicly for the first time at [[LA Hacks]], first published it on AppStore in December 2014 and then officially launched the app in March 2015.<ref>{{Cite web |last=Long |first=Heather |date=March 12, 2015 |title=New Robinhood app offers free trading. Millennials jump in |url=https://money.cnn.com/2015/03/12/investing/robinhood-app-free-trading-millennials/index.html |url-status=live |archive-url=https://web.archive.org/web/20190717221609/https://money.cnn.com/2015/03/12/investing/robinhood-app-free-trading-millennials/index.html |archive-date=July 17, 2019 |access-date=July 17, 2019 |website=CNNMoney}}</ref>
As of January 2015, 80% of the firm's customers belonged to the "[[Millennials|Millennial]]" demographic and the average customer age was 26.<ref>{{Cite news |last=Huang |first=Daniel |date=January 6, 2015 |title=Young, Poor and Looking to Invest? Robinhood Is the App for That |work=[[Wall Street Journal]] |url=https://blogs.wsj.com/moneybeat/2015/01/06/young-poor-and-looking-to-invest-robinhood-is-the-app-for-that/ |url-status=live |url-access=subscription |access-date=August 4, 2017 |archive-url=https://web.archive.org/web/20170911123820/https://blogs.wsj.com/moneybeat/2015/01/06/young-poor-and-looking-to-invest-robinhood-is-the-app-for-that/ |archive-date=September 11, 2017}}</ref> Fifty percent of users who have made a trade use the app daily and 90% use the app weekly.<ref name="raises">{{Cite news |last=Constine |first=Josh |date=September 23, 2014 |title=Robinhood Raises $13M To Democratize Stock Market With Zero-Commission Trading App |work=[[TechCrunch]] |publisher=[[AOL]] |url=https://techcrunch.com/2014/09/23/robinhood-stock-app/ |url-status=live |access-date=March 17, 2017 |archive-url=https://web.archive.org/web/20170318085217/https://techcrunch.com/2014/09/23/robinhood-stock-app/ |archive-date=March 18, 2017}}</ref> As of 2022, Robinhood had 22.8 million funded accounts and 15.9 million monthly active users.<ref name="users">{{Cite news |date=April 28, 2022|title=Robinhood's revenue fell more than expected at year's start|url=https://apnews.com/article/technology-business-ccf01fb8d5cd5e32750afa934e6f7bc5|publisher=[[Associated Press]]}}</ref>
In April 2017, Robinhood raised $110 million at a $1.3 billion valuation led by [[Yuri Milner]] of [[Mail.ru Group|DST Global]], Greenoaks Capital, and [[Thrive Capital]].<ref>{{Cite news |last=Irrera |first=Anna |date=April 26, 2017 |title=Trading startup Robinhood raises $110 million in new funding round |work=[[Reuters]] |url=https://www.reuters.com/article/us-robinhood-investment/trading-startup-robinhood-raises-110-million-in-new-funding-round-idUSKBN17S1WV |url-status=live |access-date=August 27, 2018 |archive-url=https://web.archive.org/web/20180828001809/https://www.reuters.com/article/us-robinhood-investment/trading-startup-robinhood-raises-110-million-in-new-funding-round-idUSKBN17S1WV |archive-date=August 28, 2018}}</ref><ref>{{Cite news |last=McBride |first=Sarah |date=April 26, 2017 |title=Robinhood's Stock Trading App Is Valued at $1.3 Billion |work=[[Bloomberg News]] |url=https://www.bloomberg.com/news/articles/2017-04-26/robinhood-s-stock-trading-app-is-valued-at-1-3-billion |url-status=live |url-access=subscription |access-date=May 14, 2017 |archive-url=https://web.archive.org/web/20170514021529/https://www.bloomberg.com/news/articles/2017-04-26/robinhood-s-stock-trading-app-is-valued-at-1-3-billion |archive-date=May 14, 2017}}</ref>
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The [[Financial Industry Regulatory Authority]] fined Robinhood $1.25 million in December 2019 for failing to ensure that its customers received the best price for orders. All of Robinhood's trades between October 2016 and November 2017 were routed to companies that paid for order flow, and the company did not consider the price improvement which may have been obtained through other market makers.<ref>{{Cite web |last=Matt Robinson |date=December 19, 2019 |title=Robinhood Fined $1.25 Million Over How It Routed Customer Orders |url=https://www.bloomberg.com/news/articles/2019-12-19/robinhood-fined-1-25-million-over-how-it-routed-customer-orders |url-status=live |archive-url=https://web.archive.org/web/20200102194617/https://www.bloomberg.com/news/articles/2019-12-19/robinhood-fined-1-25-million-over-how-it-routed-customer-orders |archive-date=January 2, 2020 |access-date=January 2, 2020 |website=[[Bloomberg News|Bloomberg]]}}</ref> Robinhood was sued in a [[Class action law suit|class-action law suit]] in December 2020 for failing to disclose that a large portion of its revenue relied on payment for order flow.<ref>{{Cite news |date=December 24, 2020 |title=Robinhood Financial Hit With Class-Action Suit for Selling Stock Orders |language=en |work=[[Bloomberg News|Bloomberg]] |url=https://www.bloomberg.com/news/articles/2020-12-24/robinhood-hit-with-class-action-suit-for-selling-stock-orders |access-date=December 24, 2020}}</ref>
On September 2, 2020, the ''[[Wall Street Journal]]'' reported that Robinhood was under SEC investigation for failing to fully disclose selling clients' orders to high-speed trading firms, with a potential $10 million-plus fine.<ref name="wsj.com">{{Cite Q|Q115746646|access-date=December 17, 2022}}</ref> Robinhood paid $65 million to settle the SEC investigation on December 17, 2020.<ref>{{Cite web |date=December 17, 2020 |title=File No. 3-2017, In the matter of: Robinhhood Financial, LLC, Respondent |url=https://www.sec.gov/litigation/admin/2020/33-10906.pdf |access-date=December 17, 2020}}</ref>
===Security breaches===
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