robinhood

Robinhood: Invest Smart with $100

by

Introduction: Why is Robinhood all the rage?

It is a fintech (financial technology) company that made it easier for ordinary people to invest in the stock market. You may have heard the name in the news a lot especially when markets are volatile or cryptocurrency buzz is on the rise. But recently It is trending again and this time it’s not just social media buzz. There are compelling reasons behind it, such as its stock price hitting new heights and its entry into the global crypto market.

By the end of this article, you’ll understand:

  1. What is Robinhood?
  2. Why people use it?
  3. How does it make money?
  4. What are its risks?
  5. And why is it in the news right now?

Disclaimer:

This blog is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Readers are encouraged to consult with a qualified professional for personalized guidance. All views presented are neutral and based on publicly available information.

Part 1: What is Robinhood?

It is a mobile app and online platform that allows people to buy and sell stocks without any commission. It was started in 2013 by two Stanford graduates—Vlad Tenev and Baiju Bhatt with the aim of making it easier for the common man to invest without paying hefty fees.

Earlier, when someone wanted to invest, brokerage companies used to charge fees ranging from $300–$800 per trade. This used to deter small investors it changed this tradition and offered:

$0 commission trading

User-friendly mobile app

Trading of cryptocurrencies

Live market data

Their motto was: “Finance for everyone”—and the idea became a hit.

What can you do on Robinhood?

It is an all-in-one investment platform. Here you can:

  1. Buy and sell stocks without commission
  2. Trade cryptocurrencies like Bitcoin and Ethereum
  3. Invest in ETFs (Exchange Traded Funds)
  4. Advanced services like options trading
  5. Margin trading i.e. investing by borrowing money
  6. Use a subscription service called Robinhood Gold
  7. That is, even if you have just $ 10, you can still start investing.

Part 2: How does Robinhood make money?

When it offers free services, the question arises where does it earn money? Let’s understand this in simple terms:

  1. Payment for Order Flow (PFOF)
    When you place an order,It does not send it directly to the exchange. It sends it to large market makers (such as Citadel), who in turn pay to this .
  2. Earning interest on idle money
    If you leave money in your account and do not invest it, this earns interest on that money. A bit like a bank.
  3. Robinhood Gold Subscription
    This is a premium plan, in which users pay up to $5 per month for extra services.
  4. Interest from margin loans
    If you invest by borrowing, It charges you interest on it.
  5. Spread in crypto trading
    When you buy or sell crypto, there is a slight difference between the buying and selling price. This spread is their earning.

Robinhood has been trending on all financial news platforms for the past few hours. Here are 5 big reasons behind it:

  1. Share price at 52-week high

It’s stock is trading at around $74, which is around its highest level of the year. This has created a lot of excitement among traders.

  1. Great growth in 2025

It’s shares have gone up by 86% so far this year. This is a tremendous performance for any fintech company.

  1. Great earnings in Q1

In the first quarter of 2025, It has earned 38% more profit than last year. This increase has come from their crypto and interest-based business.

  1. Acquisition of Bitstamp

On June 12, this bought Europe’s largest crypto exchange Bitstamp. With this, it has now entered the global crypto market.

  1. Record Customer Deposits

In April alone, he saw $6.5 billion in customer deposits—its largest monthly entry ever.

Part 4: What are its risks?

Every rising company has risks hidden in it. Here are some things to note about Robinhood:

  1. Regulatory investigations and fines
    Recently, he had to pay a fine of $45 million in record keeping and cybersecurity related matters.
  2. Questions on PFOF model
    Many experts raise questions on this business model—does the user get the right price or does it just increase the company’s earnings?
  3. History of technical failures
    During the market crash in 2020, the app went down, which shook people’s confidence.
  4. Crypto volatility
    The crypto market is very volatile. There can be big losses at any time. He’s over-reliance on this market is a risk.

Part 5: Who uses Robinhood?

It’s userbase is quite young. Specifically:

  1. College goers or recent graduates
  2. New investors who want to learn the stock market
  3. Crypto enthusiasts
  4. Small capital investors
  5. This platform is as popular among young people as Instagram is in social media.

Final Thoughts: Should You Use Robinhood?

If you want to start investing and don’t have a lot of money, He can be a good starting platform. But:

  1. Long-term investing requires stability and trust
  2. Making money from trading is not as easy as it seems
  3. Crypto is very risky

So, do your research before using it.

Conclusion: Robinhood is not just a name, it is a change

Today’s Robinhood is not just a trading app. It has become a platform that has brought change in the world of finance. Its popularity is due to:

  1. Making investments easy
  2. Expansion in the global crypto market
  3. Record-breaking user deposits
  4. Stock price reaching new heights

Also Visit our latest Blog which is US China Trade Talks: Rare Earth Deal Coming?

Leave a Comment