Business Insider Intelligence
It plans to use the funding to upgrade its platform, launch new products, and hire more staff. Robinhood offers commission-free trading with as little as $1, which is particularly attractive to first-time investors: Its customers average around age 32 and are usually new to trading.
This latest round suggests that investors remain confident in Robinhood’s future despite recent setbacks.
These issues highlight the need for Robinhood to add educational tools to better protect its users and regain their trust. Customer relations have soured, dragging Robinhood into lawsuits and forcing it to install protective glass in front of its office due to disgruntled users regularly showing up.
In response, the trading platform is adding educational resources to its platform, though the focus is currently on options trading. Robinhood should ensure users can access information on all aspects of trading, similar to its blog posts on financial jargon. These types of posts should be integrated into the trading part of the platform so that they pop up on users’ phones while trading rather than remain in a separate section. These efforts should strengthen user trust in the platform, boosting customer retention.
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