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Robinhood is increasing its companies for traders, additional transitioning from a novelty cellular app for first-time traders to a extra in depth platform for extra superior traders. As a part of this technique, the corporate introduced a few new options this week to attraction to energetic merchants.
3 massive issues Robinhood will begin providing merchants
Robinhood has been identified for its commission-free buying and selling and modern app interface. By eliminating the charges that different brokerages sometimes cost for every commerce, traders can purchase and promote shares, bonds, choices and even cryptocurrencies simply with out having to pay charges to Robinhood for executing the trades.
Now, the corporate is shifting to broaden its choices. Listed below are three massive issues Robinhood will begin providing over the approaching months to draw extra energetic merchants.
1. The launch of Robinhood Legend
Robinhood launched a one-stop, desktop buying and selling platform this week known as Robinhood Legend constructed with energetic merchants in thoughts. If you have already got a Robinhood account, you may have entry to Robinhood Legend, which rolled out this week, at no extra price.
“In wanting on the panorama of buying and selling instruments and by speaking with energetic merchants, we realized there’s frustration with legacy choices,” mentioned Steve Quirk, chief brokerage officer at Robinhood in a information launch. “Particularly, shifting backwards and forwards between apps or charting platforms may be cumbersome and time consuming.”
Robinhood Legend affords customers the power to entry superior buying and selling instruments, equivalent to seeing knowledge in customized intervals and viewing a number of charts; extra evaluation with dozens of metrics to observe trades; customized layouts; real-time knowledge; one-click orders; and syncing throughout layouts, tabs and displays.
2. Futures buying and selling
Responding to suggestions from merchants, Robinhood additionally added futures buying and selling to the app. Clients can now commerce in futures on the S&P 500, Bitcoin, oil and different property practically 24 hours a day.
Futures are primarily a monetary contract that offers the client an obligation to purchase a commodity or different sort of safety at a set value at a predetermined date sooner or later. The vendor should ship the products at that value.
Relying on the kind of Robinhood account you may have, commissions for buying and selling futures shall be as little as $0.50 per contract for Robinhood Gold members and $0.75 for non-Gold members. Moreover, the 60/40 tax rule applies to futures buying and selling on Robinhood, with 60 % of good points taxed as long-term capital good points.
3. Index choices
Rounding out its new options, Robinhood introduced that it’ll provide index choices. Choices buying and selling provides the holder of the choices contract the precise, however not the duty, to purchase or promote an asset at a predetermined value by a set expiration date. Index choices are tied to the worth of a particular index at a specified strike value.
Charges for buying and selling index choices shall be $0.35 per contract for Gold members and $0.50 cents for non-Gold members. Regulatory and alternate charges aren’t included within the contract value. The 60/40 tax rule applies to index choices too.
