Robinhood crypto trading volumes fell almost twice as fast as options trading in October – but accounts grew
Robinhood Markets Inc HOOD has come out with its monthly metrics report for October that offers insight into what its users are trading - hint, it's not crypto.
What happened: Investors on the commission-free trading platform reduced cryptocurrency trading volumes by 80% year over year, and up 2% since last month as traders weighed the broader implications of FTX's collapse, which fueled greater volatility in the market.
Instead, some of these investors are turning to options contracts, as 78.7 million contracts were traded in October, up 1% from a month earlier to another, but down 14% year over year.
Also read: Robinhood now offers options contracts that expire every day of the week
The number of funded accounts was unchanged month over month, with 22.9 million active accounts, up 2% year over year other.
Why it matters: Prior to Robinhood, anyone wanting to invest in stocks had to pay between $5 and $10 per trade. They also had to invest a minimum of $500 to open an account.
Company founder Vlad Tenev aimed to democratize finance for everyone with the introduction of Robinhood in 2015, noting that executing a trade costs brokers "fractions of a penny ".
Tenev's Robinhood facilitates commission-free trading of stocks, ETFs, and cryptocurrencies through a mobile app and web browser.
An industry disruptor, Robinhood has become immensely popular during the COVID-19 shutdowns, with retail investors buying and selling meme stocks and cryptocurrencies, forcing others brokerages - such as WeBull - to follow Robinhood's commission model - free trades.
Read Next: Tech Venture Capitalist Never Short Stocks, But Can Start With This 'Abomination' of a Company
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Robinhood Markets Inc HOOD has come out with its monthly metrics report for October that offers insight into what its users are trading - hint, it's not crypto.
What happened: Investors on the commission-free trading platform reduced cryptocurrency trading volumes by 80% year over year, and up 2% since last month as traders weighed the broader implications of FTX's collapse, which fueled greater volatility in the market.
Instead, some of these investors are turning to options contracts, as 78.7 million contracts were traded in October, up 1% from a month earlier to another, but down 14% year over year.
Also read: Robinhood now offers options contracts that expire every day of the week
The number of funded accounts was unchanged month over month, with 22.9 million active accounts, up 2% year over year other.
Why it matters: Prior to Robinhood, anyone wanting to invest in stocks had to pay between $5 and $10 per trade. They also had to invest a minimum of $500 to open an account.
Company founder Vlad Tenev aimed to democratize finance for everyone with the introduction of Robinhood in 2015, noting that executing a trade costs brokers "fractions of a penny ".
Tenev's Robinhood facilitates commission-free trading of stocks, ETFs, and cryptocurrencies through a mobile app and web browser.
An industry disruptor, Robinhood has become immensely popular during the COVID-19 shutdowns, with retail investors buying and selling meme stocks and cryptocurrencies, forcing others brokerages - such as WeBull - to follow Robinhood's commission model - free trades.
Read Next: Tech Venture Capitalist Never Short Stocks, But Can Start With This 'Abomination' of a Company
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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