INSUBCONTINENT EXCLUSIVE:
One share of Amazon stock costs more than $1,700, locking out less-wealthy investors
So to continue its quest to democratize stock trading, Robinhood is launching fractional share trading this week
This lets you buy 0.000001 shares, rounded to the nearest penny, or just $1 of any stock, with zero fee.The ability to buy by millionth of a
Robinhood users can sign up here for early access to fractional share trading
be turned away, and Robinhood can keep growing its user base of 10 million with its war chest of $910 million in funding
inclusive financial tools
Betterment has actually offered this since 2010.Robinhood has a bunch of other new features aimed at diversifying its offering for the
Today its Cash Management feature it announced in October is rolling out to its first users on the 800,000-person wait list, offering them
1.8% APY interest on cash in their Robinhood balance plus a Mastercard debit card for spending money or pulling it out of a wide network of
The feature is effectively a scaled-back relaunch of the botched debut of 3% APY Robinhood Checking a year ago, which was scuttled because
the startup failed to secure the proper insurance it now has for Cash Management.Additionally, Robinhood is launching two more widely
requested features early next year
Dividend Reinvestment Plan (DRIP) will automatically reinvest into stocks or ETF cash dividends Robinhood users receive
Recurring Investments will let users schedule daily, weekly, bi-weekly or monthly investments into stocks
With all this, and Crypto trading, Robinhood is evolving into a full financial services suite that will be much harder for competitors to
in dollar amounts as low as $1 or share amounts as low as 0.000001 shares rounded to the penny during market hours
Stocks worth over $1 per share with a market capitalization above $25 million are eligible, with 4,000 different stocks and ETFs available
investment tool market before other startups and finance giants can catch up
It opened a waitlist for its U.K
launch next year, which will be its first international market
But in just the past month, Alpaca raised $6 million for an API that lets anyone build a stock brokerage app, and Atom Finance raised $12.5
Meanwhile, Robinhood suffered an embarrassing bug, letting users borrow more money than allowed.The move fast and break things mentality
triggers new dangers when introduced to finance
Robinhood must resist the urge to rush as it spreads itself across more products in pursuit of a more level investment playing field.
