The Robinhood trading app is one of the first of its kind and its sole purpose is to democratize financial markets. It allows users to purchase and sell stocks without any commission. The app was hailed by stock market tycoons all around the states as it provided them with a platform to invest in the stock market without any commission costs!
On the other hand, many brokerage firms have started articulating different ways to keep their client base as this application is giving them a run for their money. Recently, Robinhood has started raising funds to completely annihilate brokerage corporations and with the help of DST they have managed to accumulate staggering funds that have increased their stock value to $1.3 Billion in just a few months. The underlining reason behind this rapid growth, and also the reason behind the growth Robinhood has achieved in such a small time frame, is the fact that they are providing a platform for the younger generation to start investing in the stock market.
Currently almost every other brokerage firm has a variety of formalities that restrict the amount of people investing in the stock market. Some have a required investment price bracket that has to be met in order for an entrepreneur to even start buying stocks; besides this, they generally charge $10 per change. But Robinhood has solved this dilemma by reducing the barriers of entry in the stock market and has empowered people with all the tools necessary to become stock market tycoons. Previously, the stock investment was only limited to the rich or those that had ample savings, but now Robinhood has changed that situation completely by allowing people to begin investing with very little funds. This is a step in the right direction as not only is it beneficial for the public at large but also for public companies that have their stocks listed in the market.
What will change with this application?
Now since more people can invest in stocks, almost every other company will face a surge in stock values as the proportion of investments will increase. This will help these companies accumulate more profits and can help revitalize many different industries that have been denied the lucrative benefits that the stock market provides.
Besides this, Robinhood has completely removed the unnecessary complications of buying and selling stocks. Currently people can only make transactions through the official website, which is very complicated. If people understood the intricate details of buying and selling stocks then this will defy the purpose of brokerage firms and people will start taking over their stock transactions on their own. This is another aspect that Robinhood has targeted; their application has simplified the whole process of buying and selling stocks. It has a user-friendly interface that will constantly notify the users about changes and empowering them to make the decisions to get the best out of their stock investments.
Only time can tell how this application will revamp the stock market industry, but one thing is certain -Robinhood will reach new horizons with the help of its latest investment by DST global. DST has helped many different companies such as Facebook and Twitter become a dominant force in the market, and it seems it might be Robinhood’s turn now.