Robinhood is a popular trading app in the US that offers commission-free stocks and ETFs. With its approachable interface and intuitive design, it caters to new investors looking to execute their first trades.
This commission-free trading platform may be planning an IPO as soon as this month. Bloomberg reported March 3 that the online broker is preparing papers ahead of filing for a March IPO. The company reportedly filed a confidential registration statement on March 23.
Some shares might be sold directly to users, the report said.
On March 25, Reuters reported that Robinhood was in fact working on a new system that would let users invest not only in its IPO but in other IPOs at pre-market offering prices. Robinhood has not provided confirmation, but competitor Sofi has rolled out a similar tool.
Here’s what we know and how investors can prepare for the IPO.
Wednesday, March 24: Robinhood filed a confidential registration statement with the US Securities and Exchange Commission, indicating its plans to go public.
Thursday, March 25: Reuters reported that Robinhood is making plans to "democratize" IPOs by opening its offering and others to users at pre-market prices. Robinhood did not confirm.
What we know about the Robinhood IPO
The popular trading app has confidentially filed a registration statement with the US Securities and Exchange Commission, reports suggest, solidifying rumors that Robinhood plans to go public. Goldman Sachs will helm the deal and the company could be worth more than $20 billion, according to Reuters.
In its September 2020 funding round, Robinhood raised $460 million and was valued at $11.7 billion. The Bloomberg report suggested the value could go much higher, up to $30 billion.
We'll continue to track this story and update this page with information as it becomes available.
How to buy shares in Robinhood when it goes public
Once Robinhood goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.
Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
Search for Robinhood. Find the stock by name or ticker symbol. Research its history to confirm it's a solid investment against your financial goals.
Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Robinhood reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Robinhood, depending on your broker.
Check in on your investment. Congratulations, you own a part of Robinhood. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
To choose the best app for different categories, we evaluated the share trading platforms on our site against a range of metrics to select the platforms that offered stand-out features for specific needs. Keep in mind that our best picks may not always be the best for you, and it's important to compare for yourself to find the option that works for you. Read our full methodology here to find out more.
How do similar companies perform?
It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Robinhood can be useful in determining how the market is performing and whether now is a good time to invest in this industry.
Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.
Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. It specializes in executing and clearing trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, and exchange traded funds (ETFs). The company custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, it offers custody, prime brokerage, securities, and margin lending services. The company serves institutional and individual customers through approximately 135 electronic exchanges and market centers. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.
Market capitalization: $27539515392
P/E ratio: 41.0674
PEG ratio: 1.81
Dividend yield: 0.0061%
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates in four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). The CCB segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; mortgage origination and servicing activities; residential mortgages and home equity loans; and credit card, auto loan, and leasing services. The CIB segment provides investment banking products and services, including corporate strategy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication; wholesale payments and cross-border financing; and cash securities and derivative instruments, risk management solutions, prime brokerage, and research. This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds. The CB segment provides financial solutions, including lending, investment banking, and asset management to small business, large and midsized corporations, local governments, and nonprofit clients; and commercial real estate banking services to investors, developers, and owners of multifamily, as well as to office, retail, industrial, and affordable housing properties. The AWM segment offers multi-asset investment management solutions across equities, fixed income, alternatives, and money market funds to institutional clients and retail investors; and retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits, and investment management products. The company also provides ATM, online and mobile, and telephone banking services. JPMorgan Chase & Co. was founded in 1799 and is headquartered in New York, New York.
Market capitalization: $473049300000
P/E ratio: 14.0239
PEG ratio: 2.6017
Dividend yield: 0.023%
TD Ameritrade Holding Corporation provides securities brokerage and related technology-based financial services to retail investors and traders, and independent registered investment advisors (RIAs) in the United States. The company offers trade execution, clearing, and margin lending services; and futures and foreign exchange trade execution services. It offers retail brokerage services for common and preferred stocks; exchange-traded funds (ETFs); mutual funds; options; futures; foreign exchange; fixed income products; primary and secondary offerings of fixed income securities, closed-end funds, common and preferred stocks; margin lending; cash management services; and annuities. The company also offers investor education services for investors to teach how to approach the selection process for investment securities and manage their investment portfolios. TD Ameritrade Holding Corporation provides its services primarily through the Internet, a network of retail branches, mobile trading applications, interactive voice response, and registered representatives through telephone. The company was founded in 1971 and is headquartered in Omaha, Nebraska.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Shannon Terrell is a senior writer for Finder who has written over 400 personal finance guides. With a focus on investments and personal finance, she breaks down jargon-laden topics to help others make informed financial decisions. She studied communications and English literature at the University of Toronto.
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