Robinhood’s Surge: 23.3 Million Accounts and a $16.4 Billion Inflow

Robinhood Markets reported a surge to 23.3 million funded accounts by November’s end, up by 20 thousand from October.

Net deposits over the past year totaled $16.4 billion, marking a 23% annual growth.

A 1% match promotion on transferred accounts attracted wealthier clients from major brokerages since its launch on Oct. 23. Account transfers surged to $1.1 billion this week, with over 150 accounts exceeding $1 million, mostly from established brokerages.

Despite this, Robinhood’s $94 billion in assets under custody lag behind competitors like Charles Schwab, managing $8.2 trillion. Schwab foresees some client attrition post-acquisitions.

Steve Quirk, Robinhood’s chief brokerage officer, sees industry disruptions as a strategic growth opportunity. Robinhood aims to diversify beyond its youth-focused image by introducing retirement accounts and continuous trading services.

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Contrary to Robinhood’s growth, Schwab reported minimal client migration. Robinhood responds to post-pandemic trading decline by expanding into retirement accounts and credit services.

While inbound transfers surpass outbound, details on outbound transfers remain undisclosed. The 1% match promotion, extended to Jan. 31, hinges on a two-year account retention.

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