Trading platform Robinhood Markets is setting its sights on an initial public offering (IPO) in the first quarter of 2021.
The online broker, which caters toward young and inexperienced investors and traders, has been wildly popular among Millennials and Generation Z.
A recent round of fundraising generated $460 million at a valuation of $11.7 billion.
Robinhood’s stated goal is to “democratize finance for all.” And without question, it has changed the way everyday people interact with the market.
Since pioneering commission-free stock trading with its bare-bones trading app, Robinhood has expanded into options.
In 2019 almost every on-line discount broker dropped its commissions to zero in order to keep pace.
But the company has been met with controversy too. Earlier this year a 20-year-old options trader was shown a balance of negative $730,000 in his account. The young man tragically took his own life.
Robinhood does not cater to its customers the way other brokers do. It had about five times more complaints filed against it than its competitors. It does not even have a customer service phone number listed on its website.
However, data is valuable in the digital age. In October, Robinhood had 13 million registered users.
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