Robinhood launches social media network for investors

The company hopes that Robinhood Social, who resembles Twitter, will help investors to attract and keep them busy. Customers registered to Robinhood Social will be able to follow other Robinhood traders, discuss strategies and market moves and share verified transactions.

In addition to the social media platform, Robinhood said he added new features such as financial indicators and one night index options for Robinhood Legend, a desktop trade platform. The company was introduced a year ago.

The announcements are coming because Robinhood is trying to protect a stable drum of product launch and paced growth. It can also help protect Robinhood Stock’s red hot momentum. The shareholders of the Araçılık company increased by 215% this year and 496% in the last 12 months and Robinhood He also joins S&P 500.

Robinhood has increased rapidly while Robinhood offers more features, products and services to gain more wallet share with millions of customers. The company, which was once known for its free trade application, now offers a credit card, a banking application and asset management services.

Robinhood CEO Vlad Tenev, who sets a target for the company to be the number 1 platform for active traders and to gain more wallets with the new generation investors, said, “Robinhood is no longer your trade, but your finansal SuperApp”.

By adding pension accounts and launching the legend of Robinhood, expanding the product and service package accelerated the growth of the company and started to carry more customers to Robinhood’s platform.

Menlo Park, based in California, had 26.5 million financial customers with an increase of 2.3 million from the same period of the previous year at the end of the second quarter. The average platform assets per customer rose from $ 5,800 to $ 10,500 for the second quarter of 2024 and to $ 3,800 for the second quarter of 2023.

Even if it takes the right steps to their goals, Robinhood faces violent competition for active merchants, a highly desirable segment of retail investors. For traditional financial services such as Charles Schwab, and relatively new participants such as Ethoro and Webull, for these customers, they tend to use a mediator company more than investors.

Robinhood is starting a social media network for investors who allow users to follow other Robinhood traders, discuss strategies and market movements and share confirmed trade.

Social media connection. Active merchants tend to use multiple mediators. They visit multiple social media platforms such as Reddit and X to share and find new investment ideas. Wallstreetbets, which is famous for the Breast Stock Craze, has 20 million members. There is a million in the Robinhood subtitle.

If the intermediary company can encourage a tight knitting community as a meeting place with Robinhood Social, it can get and hold active traders better. Since both traders and Robinhood social users are verified (that you must have a mediation account to register), the social media network will provide an advantage over the current options that are difficult to know whether the shared information is correct.

“If a customer chooses to share a trade, we can verify that trade is real, Ab said Abhishek Fatehpuria, Vice President of Product Management. “This offers a better product experience and a higher confidence for the customer where this thing actually happens.”

More importantly, the company does not aim to create a general social media website; Posts to Robinhood Social must be related to investment or trade. “We can expand the types of writing you can do over time,” Fatehpuria says. “But every shipment you make must depend on a trade. Some of it is to ensure that the platform remains in the message.”

Many Americans, especially younger, rely on social media to inform the trade, investment and personal finance decisions. Approximately 20% of US adults said that they use social media as a source of financial information and advice. According to a Gallup survey Earlier this year, it was released. For young adults aged 18 to 29, this figure was 42%. In addition, 23% of young adults say that they follow personal financial content creators on social media.

It may seem unusual that Robinhood has launched a social media platform, but executives have long been on the company’s wishes list. “This is something we talk about every year in the nine years I have been here, Fate says Fatehpuria. “Always a conversation, ‘Is this the year of social making?’ ‘

For years, the answer was no, as other priorities were priority. Today, the company operates from a stronger position with the completion of several major attempts, such as the launch of the Robinhood legend at the active merchant conference last year.

For now, Robinhood Social is only inviting. The company plans to open the network to more customers at the beginning of next year. Robinhood says it will be available without additional fees.

Trade platform improvements. With AI -supported investment assistant Robinhood Cortex, the company says that it will be easier for active merchants to analyze trends and set research processes and new opportunities.

In addition, users can trade more term trading products, including S&P 500, Oil, Bitcoin and Gold. They will also be able to ladder the futures trade in the legend (this feature is already available in Robinhood’s mobile application). And Robinhood will allow users to create special indicators and scans that some investors use to identify trade opportunities. Managers say that they are among the most demanded features of users.

Swaroon Sridhar, a leading product manager for indicators and scanning by Robinhood Cortex, said, “When we started the legend last year, we had a lot of people asking that we could add special indicators in the events. At first we thought that it was a niche audience, but even after the incident, even after the incident, people would not even use the platform. So we realized that if we want to win that audience, we should support it. ”

The company also allows Robinhood Cortex to help users create and design special indicators. Partly inspired by Robinhood personnel’s disappointment trying to create special indicators using existing online tools, Swarin says Swarin adds that it is not easy to use, especially for novice investors.

“We thought it would be a classic Robinhood moment if we could democratize it by taking something quite distinguished and presenting it to a much wider audience,” he says.

Special indicators and scans by Cortex will begin Robinhood’s subscribers who cost Robinhood $ 5 or $ 50 per year at the beginning of next year.

In addition, Robinhood will enable users to synchronize their mobile devices with Robinhood Legend and allow them to monitor the graphics on the desktop screens while trade on mobile devices.

“Some users love not only stock transactions, but also option operations, love to make transactions on mobile devices, Gina said Gina Pasqua-Adales, Senior Director of the Product Management.