Robin caravans in the stock markets: is it worth buying Robinhood stock

Medieval Robin Hood claimed to rob the rich to give money to the poor. Eight years ago, this concept was a strategy by an American online brokerage company. So it was called – Robinhood. It recently went public, and by August 3, its shares had risen in price by 26%. Fintalk explains how Robinhood makes money and whether it’s worth buying its stock.

Sometimes a beautiful slogan and a non-standard business model are enough to make a business skyrocket. Approximately this was offered to the market by Vladimir Tenev and Baiju Bhatt – the founders of Robinhood. Although the names are American, the creators have emigrant roots, as you can see from the characters: Tenev – Bulgarian, Bhatt – Indian.

In 2013, two gentlemen decided to start their own business. They gained experience in finance in New York, where they developed applications for high-frequency trading (when many transactions in a fraction of a second). As the name Shadow and Bhatt chose the famous character of the British epic Robin Hood.

A fighter for justice who stole from the rich for the poor. The founders of the company (just like the legendary robber) stated that their goal is the accessibility of trading for everyone, not just for all the rich and powerful of this world. Very often, mobile applications and computer brokerage programs are challenging to learn.

A beginner cannot figure out the intricacies: where to click, how to buy, how many shares to buy, what commissions will from him, and so on. The Robinhood mobile app turned out to be extremely clear and straightforward. In addition, the company offered its clients to carry out transactions without commission.

These are altruists, aren’t they? The fish pecked. Robinhood app has started to gain popularity rapidly. Especially among millennials (those born from 1981 to 1996). People were flattered by the unprecedented generosity of brokerage. But is the company so selfless and straightforward? What’s the secret?