The Menlo Park, California-based start-up is known for its zero-fee trading platform that rolled out about three years ago. Robinhood, which is mostly used by millennials age 18-35, also offers ETFs, options and, as of February, cryptocurrency trading. In May, it surpassed its rival E-Trade Financial and has a total of 5 million brokerage accounts.
Investors in its latest $363 million fundraising round included Sequoia, Google’s venture capital fund Capital G, DST Global and Iconiq, boosting its valuation to $5.6 billion.
Company executives have hinted at expanding beyond stock-trading services.
“We have an ambitious long-term vision to become a full-service financial services company over the next couple of years,” co-founder Vlad Tenev told CNBC in August.
The start-up is dealing with increased competition in the brokerage industry as more no-fee options come to market. J.P. Morgan announced its own commission-fee trading app in August, intensifying an ongoing price war and move to lower fees in retail brokerage.