Robinhood hits 2 million users, saved $500 million in commission fees to date

Until Robinhood came along, it was incredibly difficult for people outside of the financial system in the United States to get involved. You needed a financial expert’s help, fees were high, and the methods of entry were far too complex. Robinhood got rid of those things by just bringing investing down to a simple app for mobile devices. Now it’s possible for anyone with a phone to get Robinhood and immediately start investing their money in stocks.

Today a milestone was reached, and Robinhood shared it alongside news of additional funding.

More than 2 million users are on Robinhood constantly investing money in companies they believe will bring positive returns. Since coming to Android in 2015 with less than 500,000 users, the app has grown rapidly. The free-to-use service isn’t showing signs of slowing down anytime soon, either. It launched Robinhood Gold in 2016 to better monetize itself, and apparently Robinhood is getting 17% growth in new users from month-to-month.

Robinhood says, too, that it recently secured $110 million in Series C financing led by DST Global. That puts its valuation at $1.3 billion after being backed by NEA, Index Adventures, Ribbit Capital, Thrive Capital, and Greenoaks Capital. All of those investors have given $176 millino to Robinhood to date.

Of course user statistics were shared as well. On Robinhood, users have transacted over $50 billion while saving nearly $500 million in commission fees. These are users who, if the service did not exist, would likely never invest their money in the financial system or be forced to pay high fees to someone else.

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Source: Robinhood

About the Author: Justin Herrick

Born and raised in New Jersey, Justin is a graduate of Fairleigh Dickinson University where he studied marketing with a focus on digital marketing. He's very talkative and enjoys discussing anything from technology and sports to video games and television. As for Justin's current device rotation, he carries around the Google Pixel and Nexus 9. In the rare case that his phone or tablet is not in his hand, he is either flicking through cards on his Moto 360 (2015) or typing away on the Microsoft Surface Book. Justin is patiently waiting for the day that Google replicates the Galaxy Nexus with modern day specifications.

  • Spencer

    I have really enjoyed the UI of the app. It’s great for a novice trader who may not need a full featured broker. Please use this link to sign up and receive a FREE SHARE of a random stock. It might be worth as much as $150 (AAPL)!