Robinhood appears to be shifting toward offering more advanced tools for seasoned investors, marking its expansion from a commission-free trading app popular with retail investors to a full-fledged financial services provider competing with traditional brokerages.
The new platform provides features like real-time data and customizable layouts. Users can trade futures on assets such as the S&P 500 index, oil, and bitcoin, with fees lower than industry peers.
Premium “Gold” members pay 50 cents per futures contract, while non-Gold members pay 75 cents, compared to fees of US$2.25 per contract at Schwab and US$1.50 at E*TRADE.
Robinhood’s expansion aims to capture a larger share of the brokerage market dominated by giants like Vanguard and Fidelity, especially among more experienced traders.
Despite concerns over charging retail traders for futures trading, analysts suggest this expansion could boost Robinhood’s market share.
Robinhood reported 11.8 million monthly active users and 1.98 million premium Gold members as of June 30, with the company’s stock gaining over 100% year-to-date due to its focus on profitability and growth.