Robinhood app
Source: Robinhood
Robinhood contributed to the rest of the brokerage sector by publishing monthly trading data on Manday. The startup trouned them all – at least by one metric.
Robinhood saw 4.3 million daily average revenue trading, as DARTS, in June, the company told CNBC Monday. This is the first time the startup has shared totally every month. Robinhood’s overall debut was higher than any major established brokerage firm, and more than E-Trade and Charles Schwab combined.
TD Ameritrade saw the next highest monthly total at 3.84 million DARTs, according to the company’s monthly report. Interactive brokers saw 1.8 million DARTs in June, followed by Charles Schwab and E-Trade at 1.8 million and 1.1 million, respectively.
So-called DARTs are still an important standard for the brokerage industry for measuring client trades, even though they no longer charge commissions. Robinhood’s DARTs more than doubled in the entire second quarter compared to the previous three months, according to the company. All three of their top days, based on trading volume, occurred in June 2020.
The new revelations, first reported by Bloomberg, come just days after Robinhood announced it was taking some customer data from its site. A Robinhood spokesperson told CNBC that the number of clients who would hold a particular stock would no longer be published because these data were often “misunderstood” and “misunderstood”, and were not representative of how Robinhood’s customer base was. used. It also has plans to restrict access to its API, which was used by third-party sites like RobinTrack.com to show retail interest in shares such as Virgin Galactic and Kodak.
“As we look at customer behavior over time, many Robinhood customers use a ‘buy and hold’ strategy,” said a Robinhood spokesman, adding that as customers spend more time on the platform, ” most people buy more than they sell. “
Robinhood had a start-up year with 3 million new customer accounts in early 2020. It also announced the closure of a Series F funding round that pushed its valuation to $ 8.6 billion. Yet Robinhood has had its share of growing pain. For one, the startup experienced multiple days of outages in March, which attributed it in part to trading volume and volatility. Robinhood also made it more difficult to access his options offered in the wake of a customer’s suicide.
Robinhood is hardly the only trading company to see record growth. All of its publicly traded rivals more than doubled their trading volume year over year in the second quarter. TD Ameritrade saw the largest increase in DARTs, at 312% from the same quarter last year.
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