Robinhood Considering Offering US Retirement Accounts (IRAs), Which Are Holding $12.6 Trillion
“We see evidence that the majority of our customers are primarily buy and hold,” said Robinhood CEO Vlad Tenev on a webcast over the weekend.
Robinhood Markets, which also offers trading in select few cryptocurrencies with 34% of its revenue coming just from Dogecoin (DOGE), is now considering launching US retirement accounts. Co-founder and CEO Vlad Tenev shared this on a webcast over the weekend.
Robinhood has about 18 million funded investment accounts on its platforms, the majority of which belong to retail traders. Offering individual retirement accounts (IRAs) and Roth IRAs, which provide tax advantages to those saving for retirement, would extend Robinhood’s market vastly.
Americans held $12.6 trillion in IRAs at the end of March, up 2.8% from December-end. Tenev said,
“We are interested in building more account types, including IRAs and Roth IRAs, we've been hearing that a lot from our customers. We want to make first-time investors into long-term investors.”
IRAs tend to attract long-term investments due to penalties in withdrawing money.
“We see evidence that the majority of our customers are primarily buy and hold,” said Tenev in the live-streamed presentation.
During the same presentation, the Zero-fee brokerage stock trading app also made a case for its initial public offering to investors of all kinds. While events like these, which are called roadshows, are typically limited to hedge funds and other institutions ahead of an IPO, Robinhood made its presentation available for everyone.
The company targets a valuation of up to $35 billion in its IPO, with 20% to 35% shares allocated for its users.