BrokAIr Reviews

Robinhood Review

"Robinhood is one of the most popular online brokerages, but its aggressive marketing tactics have raised some ethical questions - is Robinhood sacrificing its customers' safety for profit?"

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Overview of Robinhood

Robinhood is an online brokerage that was founded in 2013 by Vladimir Tenev and Baiju Bhatt. It is a pioneer in commission-free trading and has revolutionized the world of online investing by providing free stock trades to its users. Robinhood is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which are government-backed organizations that protect investors.

Pros of Robinhood

Robinhood has several advantages that have made it popular among investors. These include:

Cons of Robinhood

Despite its popularity, Robinhood has some drawbacks that may be important for some investors. These include:

Public Opinion of Robinhood

Overall, Robinhood has received positive reviews from users and the media. Many investors appreciate the ease of use, low fees, and wide range of features offered by the platform. However, some have expressed concerns about the lack of customer service options and high margin rates. In 2019, Robinhood was also involved in a controversy regarding its marketing practices, though it ultimately resolved the issue with the U.S. Securities and Exchange Commission (SEC).

Newsworthy Events

In June 2020, Robinhood announced it had raised $320 million in Series F funding at a valuation of $11.2 billion. This marked the largest venture capital round ever raised by a brokerage firm. In October 2020, the company launched its first-ever advertising campaign on TV and digital channels. The campaign highlighted its mission to make investing accessible to everyone and featured stories from customers who have benefited from using the platform. In December 2020, Robinhood was sued by Massachusetts regulators for allegedly failing to protect its customers from excessive risk taking. The case is still ongoing.