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Robinhood Assets Under Management (AUM) in 2020


Robinhood total assets under management. Robinhood AUM, client assets, and number of active accounts.



Robinhood Assets Under Management (AUM)


Robinhood Financial is a new entrant into the world of securities trading. The ultra-low-cost firm has a commission of $0. Yep, that’s right, Robinhood (as well as higher rated Webull) offers trading in all products free of charge.


Estimations of Brokerage Size


While the company released very few specifics about its operations, we can confidently assume that they have around 13 million customers. The company was launched in April of 2013, which makes it a very new firm. Many investors are hesitant to transition to Robinhood, largely because of concerns over the company’s uninspiring customer service and lack of financial offerings.

Robinhood Financial does not disclose information on its total assets under management. Considering that most investors keep the bulk of their money in mutual funds and Robinhood does not offer mutual funds, the broker's AUM must be much smaller than at other brokerage houses of the same size. With average account size at Robinhood being around $3,000, we estimate Robinhood customers assets under management being around $40 billion.


Robinhood Review


Robinhood Trading rating

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Robinhood Promotion


Get one free $3-$7 value stock when you open an account.





The Best Brokers For Beginners


Below are the best investment firms for beginners to open a brokerage account:

-  Ally Invest (review) charges $0 per trade. Minimum to open a brokerage account is $0. Ally Invest's AUM is $7.2 billion.

Promotion link: Up to $3,500 cash bonus + $0 commission trades.

Open Ally Invest Account


-  TD Ameritrade (review) charges $0 per trade commission on both stocks and ETFs trades and has $0 minimum to open an account. The broker is one of the best online brokers in the country, and boasts one of the highest customer loyalty levels in the industry. There are over 4,200 commission free mutual funds and all ETFs are commission free at this broker. The broker's AUM is $1.32 trillion.

TD Ameritrade offers a variety of investment products at reasonable cost to investors. Stocks, bonds, ETF's, and mutual funds are some of the more popular securities available. There are plenty of free educational products on TD Ameritrade's website and a vibrant trader community.

Promotion link: $0 commissions + transfer fee reimbursement.

Open TD Ameritrade Account






Robinhood Fees and Account Minimums


Amazingly, Robinhood's other fees aside from commissions are also pretty low. Broker-assisted trades are only $10. ACH transfers are free. Paper statements are $5 each, while hard-copy confirmations are just $2. Traders do have to pay exchange and regulatory fees when selling securities. Usually, these charges add up to less than a dollar. List of all the fees is here: Robinhood fees.


RobinHood Stock Trading Fees


How Does the Company Make Money?


There is no advertising on either the company's website or on the mobile app. The firm says that it earns money with premium services, by not paying interest on free cash balances, and charging interest on debits in margin accounts.


Safety


The brokerage firm is insured by SIPC, the non-profit insurance for U.S. broker-dealers. Assets in a Robinhood account are guaranteed up to $500,000, and cash balances are insured up to $250,000. Robinhood is also a member of FINRA, the self-regulatory organization that oversees the securities industry.


Does Robinhood Offer Dividend Reinvestment (DRIP)?


No, Robinhood right now does not offer Dividend Reinvestment Programs also known as DRIPs. Cash dividends will be credited as cash to customer account.


Does Robinhood Offer IRA Accounts?


No, unfortunately Robinhood right now does not offer any IRA accounts.


Who Is Robinhood's Main Competitor?


M1 Finance is the other company that now offers commission-free investing.


Summary


Robinhood has taken a major gamble in trying to be profitable without charging commissions. This will be even harder to accomplish without selling advertising. It seems that investors also are taking a risk with zero research tools and rudimentary charting. The broker's customer service number is only available during market hours and isn't toll free. As in other areas of life, you get what you pay for.