You Might Want to Read This if you are Interested in Investing

Robinhood is a popular financial services company known for offering commission-free trading of stocks, options, and cryptocurrencies. It was founded in 2013 by Vladimir Tenev and Baiju Bhatt with the goal of democratizing finance for all. The platform allows individuals to invest without having to pay traditional brokerage fees, which makes it particularly appealing to new or smaller investors.

If you’re looking to step up your investing game, you might want to pay attention to some of the exciting new features Robinhood has rolled out recently. Whether you're new to the world of stocks or already an active investor, Robinhood continues to innovate and make investing easier, faster, and more accessible for everyone.

Robinhood is often considered easier to use than traditional stock brokers for several reasons, especially for new investors. Setting up a Robinhood account is straightforward, with no minimum deposit required. You can start trading with as little as $1. In contrast, traditional brokers might require a minimum deposit and a more complicated onboarding process, which can deter new or small investors.

Key Features of Robinhood:

1. Commission-Free Trading:

   • Robinhood offers commission-free trading on stocks, ETFs, options, and even cryptocurrencies (like Bitcoin, Ethereum, etc.). This has made it popular among younger investors or those just starting out, as it removes a common barrier to entry in the world of investing.

2. User-Friendly App:

   • The Robinhood app is known for its simplicity and ease of use. It's designed with a clean interface, making it accessible for beginners who want to trade on the go. It's available for both iOS and Android devices.

3. Fractional Shares:

   • One of the unique features is the ability to buy fractional shares, meaning you can invest in high-priced stocks like Amazon or Tesla without needing to buy a whole share. For example, you could invest $50 in a $2,000 stock, which helps diversify your portfolio without having a large amount of capital.

4. Cryptocurrency Trading:

   • Robinhood also allows users to trade cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, alongside traditional stocks and options.

5. No Minimum Account Balance:

   • Robinhood doesn't require a minimum deposit to open an account, which makes it easy for new investors to get started with as little as they can afford.

6. Robinhood Gold:

   • This is a premium subscription service that offers additional features such as:

     • Access to margin trading (borrow money to trade larger amounts than you could with just your cash balance).

     • Instant deposits (get access to your funds faster).

     • Research reports and more advanced market data.

7. Cash Management:

   • Robinhood also offers a cash management feature, where users can earn interest on uninvested cash. This feature includes a debit card and provides access to over 75,000 ATMs without fees.

8. No Hidden Fees:

   • One of Robinhood’s major selling points is that there are no hidden fees, and the platform doesn’t charge for common services like stock trades or account maintenance.

​At its "Robinhood Presents: The Lost City of Gold" event on March 26, 2025, Robinhood unveiled several new features aimed at enhancing the financial services experience for its users. Here's an overview of the key announcements:​

1. Robinhood Strategies: AI-Powered Wealth Management

Robinhood introduced Robinhood Strategies, an actively managed robo-advisor platform. This service offers portfolios comprising single stocks and ETFs, with an annual management fee of 0.25%, capped at $250 for Robinhood Gold subscribers. Initially exclusive to Gold members, it will become available to all users in April. ​

Additionally, Robinhood announced Robinhood Cortex, an AI-driven investment tool designed to provide real-time market insights and analyses, assisting users in making informed investment decisions.

2. Robinhood Banking: Comprehensive Banking Services

Expanding into the banking sector, Robinhood unveiled Robinhood Banking, a platform offering checking and savings accounts with a 4% annual percentage yield (APY) and FDIC insurance coverage up to $2.5 million, facilitated by Coastal Community Bank. A standout feature is the on-demand delivery of physical cash to users' doorsteps, enhancing convenience for Gold subscribers. ​

Additional perks for Gold members include access to individual, joint, and children's accounts, as well as luxury services such as private jet rides, personal chauffeurs, and luxury hotel experiences. ​

3. Robinhood Cortex: AI-Driven Investment Insights

Robinhood Cortex is an AI-powered investment assistant that provides real-time news and market analyses. Users can set price and time targets to explore trades that align with their investment strategies, enhancing decision-making with advanced research capabilities. ​

To wrap things up…

Robinhood has been a game-changer in terms of access to financial markets. It has brought commission-free trading and a user-friendly interface to a broad audience, allowing individuals with smaller amounts of capital to start investing.

This is in no way financial advice, but at Velvet Steel we believe that Robinhood is one of the more innovative companies in the last couple of years as we’ve ever seen.

We hope you enjoyed today’s letter.

Sincerely,

The Velvet Steel Team