News, Vision & Voice for the Advisory Community


Robinhood got its $32-billion IPO after it parlayed a Wall Street rebel image into a way for the Wall Street elite to cash in

The Menlo Park, Calif.-based phenom's founders become billionaires but Goldman Sachs and J.P. Morgan get their cut of the IPO, and the bulk of the trade spreads go to the Street's giant trading houses like Citadel and others

Author Oisin Breen July 29, 2021 at 6:26 PM
1 Comment
no description available
In just eight years Robinhood co-founders Vlad Tenev and Baiju Bhatt have steered the start-up to a $30 billion IPO.




August 2, 2021 — 3:17 PM
I appreciate this article very much. Have always been troubled by RH's approach of blatantly breaking the rules, knowing that whatever fines the regulators impose are just peanuts compared to the billions they will are now seeing from the IPO. There are so many issues with their model. PFOF gets all of the press, but no one focuses on other stuff like: Customers are opted into a margin account (so they can loan out securities for revenue). Who does that? By virtue of the fact that their customers flock to the volatile stocks, that is a hugely lucrative source of revenue. Also, the option trading is finally getting the scrutiny it deserves. The way anyone with a pulse (and no experience) could get approved for options trading was so wrong, but again a huge source of profit for them - much more so than PFOF on stocks.

Related Moves

March 29, 2024 at 5:02 AM

Biz Briefs: AdvicePay waives key hiring requirement to land its next CEO • ESG firms may get OK in Oklahoma • eMoney adds new chiefs • CFP Board names new chair-elect • Robinhood cuts more staff

Alan Moore replaces himself with another guy with two respectable titles • eMoney promotes two • Moisand's third in line now known • Robinhood sacks 173 in year-to-date.

July 26, 2023 at 2:34 AM

Robinhood shares spike 25% after CEO Vlad Tenev finally goes back on the attack against Acorns, Fidelity, and Schwabitrade by adding their tricks and features to its quiver

Semi-commoditized by giants and upstarts alike, the Menlo Park, Calif. firm is extending trading hours and doing its own Acorns-style round-up debit card to show it's in the fight.

March 29, 2022 at 7:19 PM

Robinhood gets 'brilliant' upper manager -- and a spare CEO -- by nabbing TD Ameritrade's ex-thinkorswim top exec, hopefully to throw a lifesaver to Robinhood's sinking stock

The Menlo Park, Calif., firm nabbed Steve Quirk as first-ever chief brokerage officer to 'bridge the gap between academia and reality.'

January 6, 2022 at 10:33 PM

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo

White Paper Postings

Common Tags

Recent Articles

Popular Writers

RIABiz logo


About Us




RIABiz, Mill Valley, California
Copyright © 2009-2024 RIABiz Inc. All rights reserved.