The Business Model of Robinhood

Robinhood's app and website allow users to trade stocks, ETFs, options, and cryptocurrencies commission-free. As a result, users are not charged any fees, and commissions on stock orders are also completely waived. Robinhood Gold is the company's premium edition, which costs five dollars each month. Users can make fast deposits of up to 50,000 USD instead of 1,000 USD and get access to margin investments. If margin investments are used and the margin exceeds USD 1,000, annual interest of 2.5 percent is additionally accrued on the difference. Additionally, gold customers have access to Morningstar research publications and more detailed market data from Nasdaq. Additionally, Robinhood offers a service called Cash Management. This implies that Robinhood users will earn a guaranteed 0.3 percent annual interest on their sweep cash, or surplus liquidity, credited to their clearing account. Cash Management subscribers receive a debit card for ordinary money transactions through a partnership with Sutton Bank, which is licensed by Mastercard.

Robinhood Business Model
2013
Founded
1.886
Employees
Menlo Park, CA
Headquarter

Hard Facts

Business Model Canvas

This canvas shows a detailed explanation of how the business model of Robinhood is structured.
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Business Model Patterns

The business model patterns of Robinhood help to understand the mechanics behind the business model. Furthermore you can learn more about the specific business model pattern by clicking learn more.
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SWOT Analysis

The SWOT Analysis of Robinhood is about the strengths, weaknesses, opportunities and threats of the companies business model. By clicking the i you can see a detailed description.
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What makes Robinhood special?

This section is all about the secret sauce of the business model of Robinhood. If there is any incredible information about the founding team (like how they started the business, etc.) you can learn from you can find it here!
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Marketing Insights

Last but not least in this section we analyse the marketing activities of Robinhood. Which kind of marketing Robinhood is doing?
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