Robinhood Financial that was founded in 2013 owes its success to the current economic circumstances imposed by the Covid-19, the growing number of remote home jobs made it easy for the company to gain a large new segment of targeted customers who wouldn’t be interested otherwise.
The company acquired 3 million new customers in the first four months of 2020. This can be an indicator that the recession caused by the corona-virus is one of the important key factors that made so many people scale their business to the investment niche, although they didn’t know much about it. “The pandemic has contributed to their growth,” said Galvin.
“People operating remotely from their homes, being easier to reach, more enticed to go online with this, to engage in day trading. They have taken an audience of very unsophisticated persons and exploited them.” Galvin added.
The company’s earnings come from the trades that their customers make, and with the growing number of Robinhood’s app users, it is extremely hard if not impossible to protect all of these investors.
