Benzinga - Robinhood Markets Inc (NASDAQ: HOOD) has revolutionized trading by eliminating traditional barriers, thereby democratizing investing with its commission-free trades and simplified approach, making it more accessible to historically underrepresented groups.
Steve Quirk, the chief brokerage officer at Robinhood appeared at Benzinga's Fintech Deal Day & Awards in New York on Monday, and spoke about how retail traders today have cutting-edge trading technology accessible for free at their fingertips. The panel was moderated by Brendan Wood the co-founder and CEO of SnapTrade.
Quirk, who has been trading since 1987, reflected on the past, saying, “We used to pay $10,000 a month for technology that was not close to what is in the hands of retail traders today for free and that's amazing – it has opened up the door for so many people... who don't have to accumulate a whole bunch of assets to get started. They can start with five bucks and invest on an interval basis.”
Paternalistic State? Quirk further discussed obstacles, pointing out a "paternalistic state" that he perceives as condescending towards younger Robinhood users. He pointed out that a 31-year-old with $25,000 in a Robinhood account might be treated as less capable compared to a 55-year-old Fidelity user with $250,000, despite both using similar financial instruments.
“It is all about education,” he said.
Quirk noted that as Robinhood has grown, it has simultaneously evolved with its customers. Many traders started with self-directed trading on the platform, and for half of them, Robinhood was their first experience with a brokerage firm.
He added that as customers' needs change, they are increasingly seeking additional services, such as advice on retirement planning and opportunities to earn yield, moving beyond just self-directed investing.
Also Read: EXCLUSIVE: Bear Market Trends Are Transforming 'Day Traders Into Long-Term Investors'
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.