Robinhood launches social media platform for traders
What's the story
Robinhood, the popular US trading platform, has launched a new social media network called Robinhood Social. The feature was announced at the company's annual conference for active investors. The move is aimed at attracting more users to its brokerage platform and keeping them engaged. The new platform will allow users to follow other traders, discuss strategies and market moves, as well as share verified trades.
Platform details
Exclusive platform for verified traders
Unlike other social media networks, Robinhood Social is a platform exclusively for verified traders. Users need to have a brokerage account to sign up, which gives the network an edge over existing platforms where the authenticity of shared information can be questionable. "If a customer chooses to share a trade, we can verify that the trade is real," said Abhishek Fatehpuria, VP of Product Management at Robinhood.
Business growth
Robinhood's product launch spree and stock performance
Robinhood has been on a product launch spree, introducing new features and services to win over its millions of customers. The company's stock has also seen a massive surge, rising 215% this year and 496% over the past 12 months. "Robinhood is no longer just where you trade—it's your financial superapp," said Robinhood CEO Vlad Tenev, emphasizing their goal to be the top platform for active traders.
User statistics
User base growth and expansion of services
Robinhood's user base has grown significantly, with a record 26.5 million funded customers at the end of Q2. The average platform assets per customer also increased to $10,500 from $5,800 in Q2 2024 and $3,800 in Q2 2023. This growth is attributed to the company's expansion of products and services such as retirement accounts and Robinhood Legend.
Market response
Creating a close-knit community for active traders
Active traders often use multiple brokerage platforms and social media networks like Reddit and X for investment ideas. Robinhood Social hopes to create a close-knit community for these traders. The company believes this will help it attract and retain active traders more effectively than other platforms where information authenticity can be an issue.
Launch details
Future plans for Robinhood Social and new features
Currently, Robinhood Social is an invite-only platform. The company plans to make it available to more customers early next year at no additional cost. This move comes as part of Robinhood's strategy to improve its trading platform with features like an AI-powered investing assistant called Robinhood Cortex, which will help active traders analyze trends and research trades more easily.