The Robinhood App: For Commission-Free Stock Trading Raises $50 M

Investing in stock markets gets easier with the Robinhood app which allows users to download the app for free and start trading on stocks without any minimum balance or commission-per-trade. The app allows for quick buying and selling of US stocks listed on the New York Stock Exchange and NASDAQ. The company has recently raised $50 million in the Series B funding.

Robinhood is a boon for the traders as it saves commission charges of $7 to $10 generally charged by few brokerages and does not require a minimum balance of $500, which is otherwise necessary for trading through brokerages.

Trading through the Robinhood app:

The process beings with a quick sign-up; after the sign up, the company does a background check and provides access to the user to start trading, with a display of popular stocks among its users. The user may choose to follow the displayed stock or not and can then link the app directly to their bank account to begin trading.

The app shows tickers in green if the stock is up on the day and red if down. Another unique feature of the app is that the entire background of the app screen will be green if the market is open for the day and black if closed.

About the app:

The Robinhood app is currently available for download on the iPhone, the iPad and the Apple Watch. The Android version of the app is still in the beta phase which the users can request for access from the website.

The iOS version of the app allows the users to:

  • Access market data and quotes in real-time
  • Build a personalized stock watchlist with historical market data and detailed charts
  • Place market limit, stop loss, stop limit and good-till-cancelled orders
  • Track portfolio through the notification center widget
  • Quickly tell when the markets are open and closed with simple color schemes

Robinhood’s features on the Apple Watch allows users to:

  • Check their portfolio’s overall performance
  • Peek at their watchlist and view detailed information
  • Buy and sell stocks

About the company:

Headquartered in Palo Alto, California, Robinhood was founded in 2013 by Vladimir Tenev and Baiju Prafulkumar Bhatt. . The company has recently raised $50 million in the Series B funding led by New Enterprise Associates (NEA), Index Ventures, Ribbit Capital and Social Leverage who were the investors in the previous round of funding have also joined the Series B funding round bringing the total funding till date to $66 million.

Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for cash claims).