Robinhood Overview
Robinhood is a FINRA-regulated broker-dealer, earning revenue from interest on cash balances, selling order information, and margin lending. As a brokerage, it provides access to various investment options for users.
Robinhood Expansion and Services
In November 2019, Robinhood expanded to the UK, offering commission-free trading and attracting a new wave of investors. It focuses on simplicity for beginners and offers limited services compared to traditional brokers.
Robinhood as a Broker-Dealer
Robinhood is a FINRA-regulated broker-dealer registered with the U.S. Securities and Exchange Commission. It acts as an agent when trading on behalf of clients, does not own client stocks, and proves ownership electronically. The platform charges fees for margin trading and Gold subscriptions.
Robinhood provides access to stocks, options, ETFs, and cryptocurrencies, with competitive pricing and a user-friendly interface for retail traders. It is important to consider the advantages and disadvantages before choosing Robinhood as a broker.