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Robinhood Assets Under Management (AUM) in 2023
Robinhood total assets under management (custody). Robinhood AUM and number of customers (user accounts).
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Robinhood Assets Under Management (AUM)
Robinhood has over 23 million customers.
In the quarter, Monthly Active Users (MAU) decreased by 0.8 million to 11.4 million.
Robinhood's assets under management are around $62 billion.
This is a decrease by 4% comparing to prior quarter, primarily driven by lower market valuations for
growth stocks and crypto assets, and partially offset by increase in Net Deposits.
Net Deposits were $4.8 billion, which translates to an annualized growth rate of 30% relative to AUC at the end of the third quarter. Over the past twelve months, Net Deposits were $18.4 billion, which translates to a growth rate of 19%.
Average Revenues Per User (ARPU) increased to $66 from $63 in the third quarter.
Robinhood's net loss was $1.03 billion, or EPS -$1.17 per share.
Robinhood's total net revenues were $1.36 billion.
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Robinhood Ticker Symbol
Robinhood's ticker symbol is HOOD. Robinhood ticker symbol is listed and traded
on the NASDAQ stock exchange.
Robinhood’s History
Robinhood was founded in Silicon Valley in 2013. Its mission was to provide free stock trading. Before Robinhood, a typical stock commission was around $10, and this was the price in the discount industry. A traditional full-service firm might charge much more than that.
Robinhood accomplished its task largely by trimming overhead. This meant the company had to provide minimal trading platforms and reduced customer service. The broker continues to operate with this structure to this day.
Size of Robinhood
Robinhood now has about 23 million customers. Impressive number for a young company.
Robinhood AUM is $62 billion, less impressive number, considering
the size of their user base.
Regulation of Robinhood
Robinhood is regulated by multiple watchdogs. The first is the Financial Industry Regulatory Authority, Inc., better known as FINRA. This group isn’t a government agency, although it is congressionally mandated.
FINRA’s job is to police the American securities industry. It does this by creating rules that member firms must follow. It enforces these rules with sanctions and other measures.
Robinhood is a member of FINRA and must follow all of its guidelines. Robinhood’s FINRA ID number is 165998.
On Robinhood’s FINRA profile, we see that the broker has two disclosures. Most brokerage firms have some disclosures, so this isn’t a major alarm. One claim alleged that Robinhood wasn’t performing best practice in its order routing. Another disclosure alleges that Robinhood made account related errors. Typically, brokers don’t deny or admit to allegations. Robinhood paid fines to settle both allegations.
Robinhood is also a member of the Securities and Exchange Commission (SEC). Unlike FINRA, the SEC is a government agency. It works with FINRA to make sure everyone is playing by the rules. Robinhood’s SEC identification number is 8-69188.
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Protection of Brokerage Accounts at Robinhood
Besides the notable organizations working with Robinhood, the brokerage house also has insurance from the Securities Investor Protection Corporation (SIPC). This group is like FINRA (not a government agency but created by the U.S. government); although instead of policing, it provides insurance for brokerage accounts. You can think of SIPC as a sort of FDIC for brokerage accounts.
SIPC provides up to $500,000 of protection for each brokerage customer. Of the half million dollars, $250,000 can be used to cover uninvested cash.
Robinhood also provides its customers with a bank sweep program where free cash balances are swept into participating banks that have FDIC insurance. This program is not obligatory. If you sign up for it, any uninvested cash you have will be protected by the FDIC.
Clearing Firm
Most brokerage firms use clearing firms to help them process trades and perform various bookkeeping services. Robinhood uses Apex Clearing Corporation, one of the biggest and most widely used clearing firms in the industry. Other brokers that use Apex include Firstrade, Tastytrade, and Ally Invest.
Other Safety Measures at Robinhood
Robinhood uses a variety of security measures to protect accounts, such as data encryption and Transport Layer Security (TLS) technology. The broker has experienced some outages periodically of its trading platforms, and these have been quite widely publicized in the media.
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Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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