Is Robinhood financially stable? (2024)

Is Robinhood financially stable?

Robinhood (HOOD) is a popular financial services company with 10.3 million monthly active users (MAU) as of November 2023. 1 It's considered a safe option for investors' securities and cash for various reasons: Robinhood is a member of the Securities Investor Protection Corp. (SIPC).

How is Robinhood doing financially?

Total net revenues increased 24% year-over-year to $471 million, due to higher net interest, transaction-based, and other revenues. Net interest revenues increased 41% year-over-year to $236 million, driven by growth in interest-earning assets and higher short term interest rates.

Is my money safe with Robinhood?

Yes. Robinhood carries insurance of up to $500,000 for stocks for each user. Cash, on the other hand, is swept into U.S. bank accounts and is covered by up to $250,000 worth of F.D.I.C. insurance.

Will Robinhood ever be profitable?

Chief Financial Officer Jason Warnick, in a post-earnings call with analysts, said Robinhood expects strong revenue growth in 2024 and is focused on driving net deposits higher.

Does Robinhood have any debt?

Robinhood Markets annual net long-term debt for 2021 was $3.552B, a INF% increase from 2020.

Is Robinhood good in 2024?

It's been a fantastic start to 2024 for Robinhood Markets (HOOD -4.34%). As of this writing, shares are up 46% this year. This gain was boosted by Q4 2023 financial results that were certainly well-received by the market. Investor enthusiasm seems to be on the way up with this booming fintech stock.

What is the average account balance in Robinhood?

The average account balance for Robinhood users is reported to be around $1,000-$5,000. How many users have been active on Robinhood in the last year? Over 13 million users were active on Robinhood within the past year.

Why not to use Robinhood?

Further, Robinhood does not offer many popular securities, including mutual funds, bonds, stocks that trade on foreign exchanges and preferred stocks, which makes it hard to diversify your portfolio.

What is the downside to Robinhood?

Robinhood's range of offerings is extremely limited in that it only offers stocks, ETFs, options, and cryptocurrency trading. Robinhood doesn't support mutual funds or fixed-income products, and you can't trade commodities, forex, or futures.

Why is Fidelity better than Robinhood?

While Fidelity offers clients access to more than 10,000 mutual funds, including many proprietary funds, Robinhood doesn't allow mutual fund trading at all. Fidelity also offers the opportunity to buy CDs and bonds, and Robinhood doesn't.

What is the future outlook for Robinhood?

Average Price Target

Based on 15 Wall Street analysts offering 12 month price targets for Robinhood Markets in the last 3 months. The average price target is $19.21 with a high forecast of $30.00 and a low forecast of $12.00. The average price target represents a 15.97% change from the last price of $16.57.

Is Robinhood backed by FDIC?

Is my money insured? Cash in your Robinhood spending account is eligible for FDIC insurance coverage of up to a total maximum of $250,000.

Should I use Webull or Robinhood?

Those who prefer easier access to technical data may prefer Webull and its advanced charting. On the other hand, Robinhood's intuitive trading platform makes it an ideal choice for investors hoping to keep things simple. Robinhood's IRA match may appeal to retirement investors.

What happens to my money if Robinhood shuts down?

Robinhood is a member of the Securities Investor Protection Corp. (SIPC). This means that any loss of an investor's securities (e.g., stocks and bonds) and cash held by Robinhood is protected up to $500,000 in the event the firm fails or goes out of business. This includes up to $250,000 protection for cash holdings.

Is Robinhood still a good company?

Robinhood is quite well-regarded by users of the app. It has a rating of 4.2 out of five stars among 4.2 million iOS users on The App Store, and 4.1 out of five stars among 481,000 Android users on Google Play.

What is the Robinhood investment scandal?

Robinhood is also being sued by investors who sold nine meme stocks at a loss in late January and early February 2021. Shares of Robinhood were up 3 cents at $10.83 at midday on Thursday. The case is In re January 2021 Short Squeeze Trading Litigation, 11th U.S. Circuit Court of Appeals, No. 22-10669.

Is Schwab or Robinhood better?

Charles Schwab is better-suited for people who want a full suite of investments and services, including fixed-income securities, robo-advisor portfolios, and mutual funds. However, if you want to trade cryptocurrencies or trade options commission-free, Robinhood may be the better fit.

What is the best trading platform?

What app is better than Robinhood?

Overall, Fidelity has a much more comprehensive platform and suite of services than Robinhood. It's a well-rounded brokerage that works for all investors, including beginners. It also has the advantage of being a massive company with a solid reputation (that Robinhood lacks at times) and nearly $10 trillion in assets.

How many users does Robinhood have in the US?

As of December 2023, Robinhood had 23.4 million funded accounts and 10.9 million monthly active users. In April 2022, Robinhood rolled out a cryptocurrency wallet to more than 2 million users. Robinhood Markets, Inc.

How many active users does Robinhood have?

The number of users grew from half a million in 2014 up to 17.3 reaching a peak in 2021. While the number of active monthly users now rests at under 11 million, the Average Revenue Per Users (ARPU) has increased.

Who runs Robinhood?

Vlad Tenev is a Co-Founder of Robinhood and, since November 2020, has served as Chief Executive Officer (“CEO”) and President of Robinhood.

Why is Robinhood shady?

The basic idea is that Robinhood gets a small payment from market makers who pay for the right to execute the transaction. This is bad for the customer because it means they may not get the best trade price when entering an order, effectively costing them money on every “free” transaction.

Is it safe to have a million dollars in a brokerage account?

Is My Money Safe in a Brokerage Account? Cash and securities in a brokerage account are insured by the Securities Investor Protection Corporation (SIPC).

Should I close my Robinhood account?

Reasons to close your Robinhood account include engaging in more day trading, preferring less risky traditional brokerages, or switching to more risky, non-traditional brokerages. To close the account, ensure a $0 balance by selling positions and withdrawing funds or transferring assets to another brokerage.