Robinhood Markets reported a surge to 23.3 million funded accounts by November’s end, up by 20 thousand from October.
Net deposits over the past year totaled $16.4 billion, marking a 23% annual growth.
A 1% match promotion on transferred accounts attracted wealthier clients from major brokerages since its launch on Oct. 23. Account transfers surged to $1.1 billion this week, with over 150 accounts exceeding $1 million, mostly from established brokerages.
Despite this, Robinhood’s $94 billion in assets under custody lag behind competitors like Charles Schwab, managing $8.2 trillion. Schwab foresees some client attrition post-acquisitions.
Steve Quirk, Robinhood’s chief brokerage officer, sees industry disruptions as a strategic growth opportunity. Robinhood aims to diversify beyond its youth-focused image by introducing retirement accounts and continuous trading services.
READ MORE: SEC’s Inspection: Binance.US Tech Under Review
Contrary to Robinhood’s growth, Schwab reported minimal client migration. Robinhood responds to post-pandemic trading decline by expanding into retirement accounts and credit services.
While inbound transfers surpass outbound, details on outbound transfers remain undisclosed. The 1% match promotion, extended to Jan. 31, hinges on a two-year account retention.
Read the full article here
