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Robinhood Markets Inc (HOOD)

Robinhood Markets Inc. is an American online broker that allows its clients to trade stocks and ETFs commission-free via the Robinhood mobile app. According to the company's founders, its name derives from the company's mission to "provide everyone with access to the financial markets, not just the wealthy".

The company's revenue comes from the following sources:

  1. Earning interest on clients' trading account balances by depositing funds with banks that are insured by the Federal Deposit Insurance Corporation (FDIC) of the United States
  2. Margin lending
  3. Selling information about its customers' stock market requests to high-frequency traders
  4. Issuing and servicing branded deposit cards
  5. Cryptocurrency trading through its subsidiary company.

In addition, the company provides a wide range of additional services, including educational and informational ones.

In 2020, the company took in $958.8 million in revenue, 245% more than the year prior ($277.5 million). Transaction and brokerage costs grew at a slower rate in 2020, amounting to $111.1 million, an increase of 148% compared to 2019, when they amounted to $45.5 million. 

Operating profits in 2020 came to $13.8 million, compared to $27.6 million in 2019. In late July 2021, the online broker went public through an IPO.

Trading opportunities 

Robinhood Markets has the potential to significantly expand its business operations. A 2020 survey by Gallup revealed that 68% of Americans aged 18-29 don't invest in the stock market at all. Survey respondents reported that a major hurdle preventing them from trading was the lack of a convenient investment tool, one now offered by Robinhood. Since the company's stock began trading on the Nasdaq, its daily average volatility has been 14.4%.

How to buy and sell Robinhood Markets Inc. (HOOD)

If you want to buy or sell Robinhood Markets Inc. (HOOD) stock, you'll need access to stock exchanges. But if all you care about is making money on any changes in the price of its stock, using a broker or trading platform is a much better option. Such platforms include MetaTrader 4 or 5 or Libertex. Trading on these platforms is convenient, leverage can be used, and you can even earn if the asset's value goes down.