Robinhood Financial LLC Company Profile - Overview (2024)

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What is the company profile of Robinhood? ›

Robinhood Financial LLC operates as an institutional brokerage company. The Company provides online and mobile application-based discount stock brokerage solutions that allows users to invests in publicly-traded companies and exchange-traded funds.

2:21‐cv‐01571‐BJR (W.D. Wash.) (the “Lawsuit”). The Lawsuit alleges that Robinhood violated Washington law by substantially assisting in the transmission of unsolicited commercial text messages to prospective customers as part of its refer-a-friend marketing program.

Robinhood Financial LLC: Overview

The company offers trading of stocks and funds, options and gold. Robinhood allows trading in real time with any minimal amount. The company's offers three types of accounts, such as Robinhood 9, Robinhood Gold and Robinhood Cash.

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Stock trading costs: 5 out of 5 stars

Robinhood provides 100% commission-free stock, options, ETF and cryptocurrency trades, making it attractive to investors who trade frequently. Still, these days many big-name brokers also offer free trades, so it makes sense to compare other features when picking a broker.

Who owns the Robinhood company? Institutional investors own 31.9% of Robinhood's stock, with retail investors holding 25.2%, private equity firms 21%, individual investors 15%, and private companies accounting for 6.4%, according to Simply Wall Street.

The Class Representatives and Robinhood have now agreed to a Settlement to resolve the Lawsuit, as described below. Deadlines unrelated to the Settlement of the Lawsuit are currently stayed while the parties notify the Settlement Class of the proposed Settlement and seek final approval of the Settlement from the Court.

The company provides an electronic trading platform accessible via mobile app that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrency, as well as cryptocurrency wallets, credit cards and other banking services.

Robinhood is funded by 87 investors. Emergent Fidelity Technologies and 9Yards Capital are the most recent investors.

We don't charge you fees to open or maintain your account. However, the following regulatory organizations charge Robinhood fees for trading that we do pass on to you to cover our costs: The Financial Industry Regulatory Authority (FINRA) charges a regulatory transaction fee and trading activity fee for sell orders.

What are the benefits of an LLC for stock trading? ›

The management flexibility, tax benefits and protection of personal assets offered by LLCs make it a great vehicle for investment opportunities. Since there can be more than one member, it's often the business entity of choice when multiple people are looking to invest in something as a group.

All Robinhood customers are beneficial shareholders because the shares they own are held by Robinhood Securities as the “street name” (as the Robinhood Securities' name, rather than the names of the individual legal owners).

Your securities and cash are protected by SIPC

Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash) for each investing account, including IRAs.

According to the notice, Robinhood has complied with earlier subpoenas from the SEC regarding its “cryptocurrency listings, custody of cryptocurrencies, and platform operations.” Through its subsequent investigation, the SEC said that it found Robinhood in violation of Sections 15(a) and 17A of the Securities Exchange ...

Robinhood requests personal information, including financial and tax identification information, in order to comply with U.S. government laws and FINRA rules.

Robinhood Markets, Inc. is an American financial services company headquartered in Menlo Park, California.

Robinhood is funded by 87 investors. Emergent Fidelity Technologies and 9Yards Capital are the most recent investors.

Largest shareholders include Vanguard Group Inc, Index Venture Associates VI Ltd, Galileo (PTC) Ltd, Ribbit Management Company, LLC, BlackRock Inc., ARK Investment Management LLC, Sumitomo Mitsui Trust Holdings, Inc., Nikko Asset Management Americas, Inc., Newlands Management Operations LLC, and Thrive Capital ...

The company competes with other brokerages, such as Charles Schwab and E*Trade, but is a relatively new player in the field. It typically generates the bulk of its revenue from payments for order flows, but due to the favorable rate environment in 2023, it generated the bulk of its revenue from interest. Robinhood.