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Robinhood

American financial services company

Robinhood, based in Menlo Park, California, offers commission-free trading of stocks, ETFs, and cryptocurrencies through a mobile app. It is regulated by FINRA and the SEC, with revenue streams from various sources. As of December 2023, Robinhood had millions of funded accounts and active users.

Related

Hedge Fund Coinbase Cathie Wood Morgan Stanley Larry Fink Wall Street Oaktree Capital Management Carl Icahn Goldman Sachs Citigroup

Timeline

Occupy Wall Street movement leads to the conception of Robinhood app

In response to accusations of profiteering from an unequal system, Vladimir Tenev and Baiju Bhatt were inspired to create Robinhood in 2012. The app aimed to level the playing field by offering commission-free trading, disrupting the traditional brokerage model.

Founding of Robinhood Markets, Inc.

Robinhood Markets, Inc. was established in April 2013 by Vladimir Tenev and Baiju Bhatt, who aimed to democratize access to financial markets by offering commission-free trades through a mobile app.

Robinhood launches on Apple's App Store

In 2014, Robinhood officially launched on Apple's App Store after building up a significant user base through a referral-based waiting list strategy. The app's commission-free trading model attracted a large number of users.

Official Launch of Robinhood App

Robinhood officially launched its mobile app in March 2015, providing users with a platform for commission-free trading of stocks, ETFs, and cryptocurrencies.

Introduction of Instant Deposits

In February 2016, Robinhood introduced instant deposits, allowing users to be credited instantly for deposits up to $1,000, which was a significant improvement from the previous three-day waiting period for funds to appear via ACH transfer.

Launch of Robinhood Gold

In September 2016, Robinhood launched Robinhood Gold, a premium subscription plan that provided users with benefits such as up to $50,000 in instant deposits, margin trading, and enhanced market analytics.

Execution of Over $30 Billion in Trades

As of February 2017, Robinhood had executed over $30 billion in trades, showcasing the platform's growing popularity and user activity in the stock market.

Offering Free Stocks for Referring New Users

In August 2017, Robinhood started offering free stocks to users who referred new members to the platform, aiming to attract more users through a referral program.

Introduction of Options Trading

In December 2017, Robinhood introduced options trading to its platform, expanding the range of investment opportunities available to its users.

Robinhood closes $363 million Series D financing round

On May 10, 2018, Robinhood concluded a $363 million Series D financing round with DST Global as the lead investor, bringing their total venture capital funding to $539 million.

Robinhood Checking Account Interest Controversy

After introducing a checking account with 3% interest, Robinhood faces backlash and is forced to retract the offer. It is revealed that the SIPC guarantee for user deposits was not accurate, leading to concerns about the company's banking practices.

Robinhood App Leverage Loophole Exploited

Users of the Robinhood app uncover a loophole that allows for unlimited leverage in trades. A trader showcases leveraging a $1 million position with just a $4,000 deposit, raising questions about risk management and oversight within the platform.

FINRA fines Robinhood for best execution failure

On December 19, 2019, the Financial Industry Regulatory Authority (FINRA) imposed a $1.25 million fine on Robinhood for not ensuring customers received the best deal on their orders. Robinhood, a brokerage firm, failed to meet the requirement of best order execution and had to settle with FINRA.

Robinhood platform outage during market volatility

On March 2, 2020, Robinhood experienced a platform outage during a highly volatile day in the equities market. Users were unable to trade or access funds for most of the trading hours, causing traders to miss out on potential profits as stock indices surged more than 4% throughout the day.

Travis Taaffe files class action lawsuit against Robinhood

On March 4, 2020, Travis Taaffe, a Robinhood investor, files a class action lawsuit in the US District Court for the Middle District of Florida in Tampa. The lawsuit aims to recover damages due to Robinhood's alleged failure to provide and maintain a suitable platform for its users.

Robinhood Platform Outage

On March 9, 2020, Robinhood experienced another outage, rendering the platform partially or completely inaccessible from 6:30am to 12:30pm. This outage coincided with a significant drop in the Dow Jones Industrial Average, reminiscent of the 2008 financial crisis.

Robinhood Compensation Offer

On March 26, 2020, Robinhood announced a compensation of $75 for traders who suffered losses due to the previous outages. Interestingly, the same amount of $75 was required by users to withdraw funds or transfer shares of stock.

Federal Judge Denies Request to Stop Robinhood Communication

A federal judge rejects a plea to halt Robinhood from contacting users about a $75 goodwill credit, citing lack of evidence of abusive communications by the company.

Robinhood's Billionaire Founders

Vladimir Tenev and Baiju Bhatt, founders of Robinhood, created a stock trading app aiming to democratize finance by offering zero-commission trades. However, the primary revenue source was selling customer trades to market's notorious operators.

Class Action Suit Against Robinhood in Miami-Dade District Court

Robinhood faces a class action lawsuit in Miami-Dade District Court, accusing the app of not warning its inexperienced investors about potential stock value fluctuations.

Massachusetts Securities Division files complaint against Robinhood

The regulatory arm of the Massachusetts Securities Division filed a complaint against Robinhood, accusing the company of failing to protect customer assets and exposing them to unnecessary trading risks, including the 'gamification' of trading.

Robinhood settles with SEC for $65 million

Robinhood paid $65 million to the SEC to settle charges related to making repeated misstatements about receiving payments from trading firms for routing customer orders and failing to seek the best terms for executing customer orders.

Class-Action Lawsuit Against Robinhood for Market Manipulation

A class-action lawsuit was filed against Robinhood on January 28, 2021, in the Southern District of New York, alleging market manipulation by removing the stock 'GME' from its platform during a stock rise.

Limited Buys Reallowed by Robinhood

On January 29, 2021, Robinhood announced that it would reallow limited buys of the stocks that were previously restricted.

House Committee on Financial Services Hearing with Robinhood CEO

The House Committee on Financial Services questioned Robinhood CEO Vlad Tenev during a hearing on February 18, 2021, regarding the trading restrictions and controversy.

Robinhood Faces Lawsuits Related to Gamestop Fiasco

Robinhood disclosed in a regulatory filing that it is facing 46 class actions and three individual lawsuits due to the Gamestop controversy. Additionally, four class actions have been filed regarding Robinhood's trade order flow, which is a key revenue source for the company.

Robinhood Financial LLC hit with $70 million penalty by Finra

On June 30, 2021, Robinhood Financial LLC received a record $70 million penalty from Finra due to trading outages that resulted in financial losses for investors.

Robinhood's Initial Public Offering (IPO) on NASDAQ

On July 29, 2021, Robinhood went public through an initial public offering (IPO) and started trading on the NASDAQ under the ticker symbol HOOD. The IPO was highly anticipated and garnered significant attention from investors and the media.

Extension of Extended Trading Hours

In March 2022, Robinhood announced an extension of four additional hours to its extended trading period, moving towards the goal of providing 24/7 equities trading for clients.

Introduction of Cryptocurrency Wallet by Robinhood

In April 2022, Robinhood rolled out a cryptocurrency wallet to over 2 million users, expanding its services to include storage and trading of digital assets.

Launch of Stock Lending Program

In May 2022, Robinhood introduced a stock lending program, enabling users to lend out fully paid stocks in their portfolio, expanding the platform's financial services.

Robinhood's cryptocurrency division fined by New York State Department of Financial Services

In August 2022, Robinhood's cryptocurrency division faced a $30 million penalty from the New York State Department of Financial Services for alleged violations of anti-money-laundering and cybersecurity regulations.

Robinhood tags AMC stock with bankruptcy label

On May 1, 2023, Robinhood briefly labeled AMC stock with a bankruptcy tag for three minutes, leading to potential legal action from AMC's CEO Adam Aron.

Robinhood acquires X1 credit card issuance startup

On June 22, 2023, Robinhood announced the acquisition of X1, a credit card issuance startup, for $95 million, expanding its services into the credit card sector.

End of the Timeline
Robinhood

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