Robinhood first reported about 4.3 million transactions per month on its platform. This key industry rate was higher than all major brokerage firms and more than E-Trade and Charles Schwab combined.
Startup brokerage Robinhood industry company on Monday published its first monthly trade data on its platform.
Robinhood Markets is very popular among newbie investors discount brokerage company that offers trading without Commission through its website and mobile app.
One of the key indicators used in the brokerage industry, the average daily income from trading (Daily Average Revenue Trade – DART) at Robinhood in June exceeded the same at all available on the market brokerage firms.
DART has traditionally represented the average number of transactions per day, which brought fees or charges. Although many companies have moved to zero Commission, the DART remained the key metric that allows analysts and others to compare the performance of companies and identify General trends in the industry.
After 2014 began Robinhood to offer free trades by the end of 2019, to remain competitive, on the ground the Commission had to go to many major brokerage firms.
The number of DART Robinhood in June amounted to 4.3 million transactions from TD Ameritrade, this figure was 3.84 million, Interactive Brokers has registered 1.8 million DART, and Charles Schwab and E-Trade: 1.8 million and 1.1 million, respectively.
According to the company, the number of DART Robinhood for the entire second quarter more than doubled compared with the previous first quarter. All three of his best day in trading volume was accounted for by June 2020.
In the absence of Commission Robinhood receives income through the “discount from market makers and trading platforms”, so a large volume of trading is so important for profit of the private brokerage company.
Data research companies indicate that payments for a large number of transactions brought Robinhood approximately $69 million of revenue in 2018, which is 227% higher than in the previous year, and amounted to more than 40% of total revenue.
Other sources of income Robinhood include a monthly fee of $5 per additional membership Robinhood Gold, which gives the customer access the transaction using the debit card companies and investment instruments.
At the beginning of 2020 platform Robinhood has attracted about 3 million new customer accounts, the total number now exceeds 13 million.
The company also said that “over time, many customers Robinhood use the strategy “buy and hold” and spend more time on the platform, “most of them are buying more shares than selling.”
In June Robinhood introduced additional criteria, eligibility requirements, and changes to their options, as well as learning tools after the suicide of a client. The company will also change the user interface of its platform.
“We have not forgotten that our company and our services have become synonymous with retail investing in America and that this has resulted in millions of new investors made their first investment through Robinhood”, – said the Director General. “We are aware of this huge responsibility and take it lightly. Our desire to innovate, to lead and to go beyond the status quo”.
In addition, in early August, Robinhood announced that it removes some customer data from its website.
The representative Robinhood said in an interview with CNBC that the company will no longer publish the number of customers owning one or another action, because this data is often “incorrectly interpreted” and “has been misunderstood” and did not reflect how the client base is using Robinhood.
The company also plans to limit access to its API, used by third-party sites such as RobinTrack.com to demonstrate retail interest in such shares, as Virgin Galactic and Kodak.
After the closing of the financing round series F market valuation Robinhood reached $8.6 billion.
Source:
CNBC
