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How to buy Robinhood stock from South Africa

Here's everything we know so far about the Robinhood IPO.

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Thursday, July 29: Robinhood priced its initial public offering at US$38 per share, the low end of its US$38 to US$42 range. The stock debuted at US$38 per share before jumping to a high of US$40.22 in its first trading day.

Tuesday, July 27: Robinhood’s much-anticipated IPO is scheduled to price July 28 and start trading July 29.

Thursday, July 1: Robinhood filed publicly with the US Securities and Exchange Commission its intention to trade on the NASDAQ under the ticker symbol HOOD.

Wednesday, March 23: Robinhood filed a confidential registration statement with the US Securities and Exchange Commission, indicating its plans to go public.

Robinhood is a popular US trading app that offers commission-free stocks, ETFs and options trading.

On July 1, 2021, the company announced it had officially filed to list on Wall Street’s NASDAQ under the ticker symbol HOOD. It follows earlier reports of a confidential registration by the firm in March.

Also read: Alternatives to Robinhood in South Africa

Here’s what we know and how investors from South Africa can prepare.

How to buy shares in Robinhood from South Africa

To buy shares listed in the US, you’ll need a brokerage account with access to the US stock market. Check out the steps below:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of Robinhood, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Robinhood. Optimize 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.

About the Robinhood IPO

Robinhood listed on the NASDAQ at US$38 per share on July 29.

The trading app disclosed a pre-IPO filing with the U.S. Securities and Exchange Commission on July 1, 2021, ending months of speculation.

Investment firms Goldman Sachs and JPMorgan are helming the deal, while Barclays, Citigroup and Wells Fargo are onboard to book-run the offer.

The company could be worth more than US$20 billion, according to Reuters. In its September 2020 funding round, Robinhood raised US$460 million and was valued at US$11.7 billion. A Bloomberg report suggested the value could go much higher, up to US$30 billion.

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.

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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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