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A comment on Robinhood stock trading app confirms $110M raise at $1.3B valuation. Parent comment

Re:Robinhood stock trading app confirms $110M raise at $1.3B... by huac on Wednesday April 26, 2017 @11:29AM (#14203789)
Robinhood knows that people can just buy index funds and sit (which is what I do). But this doesn't make money, so they encourage people to buy individual stocks, "whatever new Elon Musk stock is out there", and trade on leverage.

To some extent they want to make Robinhood a game, rather than an investment platform.

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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by webninja on Wednesday April 26, 2017 @02:02PM (#14205396)
Robinhood makes money off of uninvested capital and margin accounts, not trade commissions. So why would they care what we buy or whether we make purchases rarely or not?
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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by usefulcat on Wednesday April 26, 2017 @02:56PM (#14205892)
According to TFA they also make money off of rebates, which are proportional to the number of shares traded.
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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by matt_wulfeck on Wednesday April 26, 2017 @04:19PM (#14206596)
So then they make money of both.
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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by huac on Wednesday April 26, 2017 @02:15PM (#14205527)
Someone who trades frequently is more likely to upgrade to Robinhood Gold than somebody who buys an index fund once and forgets.
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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by metalliqaz on Wednesday April 26, 2017 @12:40PM (#14204615)
Wall street did that a loooong time ago
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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by stuffedBelly on Wednesday April 26, 2017 @01:45PM (#14205245)
Robinwood's target audience seems to be younger generation, most of whom are not hot about investment, not to mention whether they know what Wall Street did a long time ago (aside from 2008's financial crisis).
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