Robinhood Markets (Nasdaq: HOOD) has witnessed a slowdown in demand in April, with a declining lively customers and buying and selling quantity, the dealer revealed in its coaching metrics revealed on Wednesday.
The brokerage ended the month with 11.5 million month-to-month lively customers, down by about 300,000 from the earlier month. The variety of these customers went down by 26 p.c from the identical month of the earlier yr. Nevertheless, the variety of internet cumulative funded accounts went up by about 30,000 to succeed in 23.1 million.
Buying and selling quantity on the platform additionally took a big hit in April. Buying and selling with equities devices $38.9 billion, 32 p.c down from March and 29 p.c from April 2022. Choices buying and selling, which brings the best chunk of Robinhood’s buying and selling quantity, additionally went all the way down to 75.3 million contracts, a month-to-month decline of 25 p.c however elevated by 7 p.c year-over-year.
Cryptocurrency buying and selling additionally confronted demand dullness as buying and selling volumes declined to $3.7 billion from the earlier month’s $3.9 billion. On a yearly foundation, crypto buying and selling quantity on the platform decreased by 47 p.c.
The day by day common income of trades (DARTs) additionally went down throughout devices, month-to-month and yearly. DARTs for equities got here in at 1.4 million, 11 p.c decrease from March, whereas choices and cryptos, at 0.5 million and 0.2 million, declined by 14 p.c and a couple of p.c, respectively.
The buying and selling platform held $77.4 billion in property below custody (AUC) on the finish of this month, down 1 p.c from March. The online deposits in April had been at $1.4 billion.
A Widespread Platform
Robinhood is a well-liked retail buying and selling platform that grew with a zero-commission mannequin and an intuitive interface. The recognition of the platform even pressured different established gamers throughout the globe to introduce zero-fee buying and selling.
Nevertheless, the retail buying and selling platform was additionally on the heart of controversies, principally on account of its opaque enterprise mannequin. Over time, the platform paid heavy fines for a number of violations: $30 million in 2023 to the NYDFS, $70 million in 2021 to FINRA, and $65 million in 2020 to the SEC. Alabama state regulators not too long ago fined the platform $10.2 million for a system outage in 2020.
Whereas the income of the buying and selling platform continues to develop, its losses are mounting. It generated $441 million in income within the first quarter of 2023, whereas losses at $511 million deepened by over 200 p.c.
Robinhood Markets (Nasdaq: HOOD) has witnessed a slowdown in demand in April, with a declining lively customers and buying and selling quantity, the dealer revealed in its coaching metrics revealed on Wednesday.
The brokerage ended the month with 11.5 million month-to-month lively customers, down by about 300,000 from the earlier month. The variety of these customers went down by 26 p.c from the identical month of the earlier yr. Nevertheless, the variety of internet cumulative funded accounts went up by about 30,000 to succeed in 23.1 million.
Buying and selling quantity on the platform additionally took a big hit in April. Buying and selling with equities devices $38.9 billion, 32 p.c down from March and 29 p.c from April 2022. Choices buying and selling, which brings the best chunk of Robinhood’s buying and selling quantity, additionally went all the way down to 75.3 million contracts, a month-to-month decline of 25 p.c however elevated by 7 p.c year-over-year.
Cryptocurrency buying and selling additionally confronted demand dullness as buying and selling volumes declined to $3.7 billion from the earlier month’s $3.9 billion. On a yearly foundation, crypto buying and selling quantity on the platform decreased by 47 p.c.
The day by day common income of trades (DARTs) additionally went down throughout devices, month-to-month and yearly. DARTs for equities got here in at 1.4 million, 11 p.c decrease from March, whereas choices and cryptos, at 0.5 million and 0.2 million, declined by 14 p.c and a couple of p.c, respectively.
The buying and selling platform held $77.4 billion in property below custody (AUC) on the finish of this month, down 1 p.c from March. The online deposits in April had been at $1.4 billion.
A Widespread Platform
Robinhood is a well-liked retail buying and selling platform that grew with a zero-commission mannequin and an intuitive interface. The recognition of the platform even pressured different established gamers throughout the globe to introduce zero-fee buying and selling.
Nevertheless, the retail buying and selling platform was additionally on the heart of controversies, principally on account of its opaque enterprise mannequin. Over time, the platform paid heavy fines for a number of violations: $30 million in 2023 to the NYDFS, $70 million in 2021 to FINRA, and $65 million in 2020 to the SEC. Alabama state regulators not too long ago fined the platform $10.2 million for a system outage in 2020.
Whereas the income of the buying and selling platform continues to develop, its losses are mounting. It generated $441 million in income within the first quarter of 2023, whereas losses at $511 million deepened by over 200 p.c.
