Robinhood was founded in 2013 by Baiju Bhatt and Vlad Tenev, both Stanford physics graduates who previously built high-frequency trading systems for Wall Street firms. The insight behind Robinhood was that trading commissions were a barrier to entry for younger, smaller investors — so they eliminated them entirely.
The app launched in 2015 and grew rapidly, particularly among millennials and Gen Z users attracted by its clean mobile interface and zero-commission model. Robinhood forced the entire brokerage industry to drop trading fees — Schwab, TD Ameritrade, and others all went commission-free in late 2019.
Robinhood went public on Nasdaq in July 2021 at a $32 billion valuation. The IPO came months after the GameStop/AMC meme stock frenzy, during which Robinhood controversially restricted trading in certain stocks, prompting congressional hearings and widespread criticism.
The platform offers trading in US stocks, ETFs, options, and cryptocurrencies. Robinhood Gold, a $5/month subscription, provides margin trading, larger instant deposits, professional research, and higher interest on uninvested cash. The company added retirement accounts (IRAs) with a 1% match in 2023 and launched a credit card.
As of 2024, Robinhood has over 23 million funded accounts and around $130 billion in assets under custody. Revenue comes from payment for order flow, net interest, and Gold subscriptions. The company is headquartered in Menlo Park, California, with about 2,300 employees.
Robinhood also acquired Bitstamp, a major European crypto exchange, in 2024, signaling international expansion ambitions.
