This ensures that they know what their customers can handle when it comes to investing. Traditional brokerages and banking platforms often have extensive Know Your Client ( KYC) guidelines in place. Unfortunately, Robinhood’s client base is exactly what it’s intended to be, they’re accomplishing the exact opposite.The average Robinhood account is worth about $2,000, versus the average E-Trade account at $69,230 and the average Morgan Stanley account at $900,000. The median age of a Robinhood user is 30 years old, and half of them have no investing experience whatsoever. After spending five years getting to 10 million users, In the first quarter of 2020 alone Robinhood picked up an additional 3 million new users.Īnd this user base is exactly what it’s meant to be – young, inexperienced investors looking to get their feet wet in the markets.In the wake of the COVID-19 outbreak, millions affected by the quarantines and the economic downturn flocked to open new accounts. Robinhood has quickly become the go to trading platform for a generation of new investors, speculators and get rich quick fans. All thanks to its ease of access and nonexistent fees. It was touted as the trading platform set to level the playing field between the Wall Street one-percenters and the rest of the world.

Robinhood Free Trading Services – Buyer Beware Instead, he simply asked: “How was a 20-year-old with no income able to get assigned almost a million dollars worth of leverage?”

The question he left in his suicide note wasn’t tied to any sort of extremist ideology. On a sunny day earlier this June, a young college student jumped into an oncoming train.

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