that the band did for simple payments, making Robinhood for free trading. This week the launch of brokerage launched its platform so that developers can bake it zero commission stock trading in their products.
Stop for a moment and think about what the big deal is. So far, there are two types of applications shares. Those that actually allow you to do deals, but you will be charged a fee of about $ 7 as E * Trade or Scottrade. And those where you could keep track of inventory, do research, and to control how others traded, but could not actually buy or sell.
Robinhood erased the line between them, especially with their stylish stitching and applications Android, and now for other applications. This makes the former largely obsolete, giving stock trading for free, making the latter is much more useful by transforming you from the viewer to the real players in the market. “It’s going to be a” tectonic plate shift “type of thing for the financial services industry,” co-founder Vlad Robinhood Tenev tells me.
first integration allow to buy stocks you’re tracking on StockTwits, to compare a stock portfolio RobinHood this community Openfolio and trade programs through Quantopian algorithms that actually buy and sell.
This leap forward in the FinTech may cause an explosion of innovation, developers create new applications and functions that take advantage of the platform in RobinHood. Just as they do not have to spend time building a payment system from scratch when they can use Stripe, Robinhood allow them to focus on adding unique value. Meanwhile, the platform gives RobinHood easy way to add new users, entrenching itself as it prepares for a long battle with dinosaurs brokerage.
We buy and sell, you do you
“When was the last time you heard start talking about buying an HP zkonomit and seeks to fill it in?” Ask RobinHood co-founder and CEO Baiju Bhatt. Hint: the answer is never. “That’s because we have an Amazon Web Services,” says Bhatt. He believes Robinhood can deliver that thinking is not to reinvent the wheel in order to finance technology.
For example, StockTwits not have to worry about jumping through regulatory hoops years required to become SEC approved broker who can make deals.
Instead, when a user thinks that one of the companies in their Watchlist StockTwits ready for success, just swipe and buy button appears. On tap, they quickly moved into Robinhood where they choose, how many shares to buy and confirm the final price. Crane on the confirmation page pops them back to StockTwits.
The RobinHood StockTwits increased integration of a companion app for the monitoring of stocks you have to track down and buy elsewhere, which may be your primary financial applications, powered by RobinHood trade. Currently, free apps will be able to use the platform RobinHood free. Robinhood is considering asking for a share of the proceeds from the developers that charge users own.
The Holy Grail for Robinhood be signing Yahoo Finance. But over time, we could see the spread of new applications that extend the platform, application of the competition where users compete for the best one-day gains to cooperation where a lot of people can reflect moves the most financially savvy friends.
Many years ago, Facebook Internet colonized it as input buttons. They plastered his name everywhere, reminding existing users to visit the site. They generated content can interact with the back on Facebook. And they did your Facebook account more valuable because you can instantly schedule Refer a friend anywhere in encouraging registrations. Strategy entrenched Facebook as the main social network, increasing its push to become a ubiquitous utility.
Now, Robinhood does the same with what is essentially an embedded button Trade. The more applications that integrate it, the more people are RobinHood income, the more money it has under management, and the more she earns a percentage. Meanwhile, those users dial their friends and lure more developers Robinhood.
“Facebook Platform provided a lot of inspiration”, the shadow tells me. “I think it really helped to strengthen the advantage of Facebook’s space. Why build another social network”? [Disclosure: Shadow and Bhatt were my friends from college.]
Bhatt hopes Robinhood can walk the same path. “If we do it right and fix it up royally, in 5 years it will be completely unnecessary to build some kind of a brokerage.”
This is an important “if.” With other applications currently connect to Robinhood on OAuth, it is important that its security remains locked. If hackers were able to steal money and personal information, it could deter people from connecting their bank accounts and put an arrow in the center of Robinhood.
This is why from $ 66 million in funding is so important. It has a lot to spend on defense thanks to cash from Index Ventures, Andreessen Horowitz, Google Ventures, NEA, Howard Lindzon, Jared Leto and Nas.
They saw the changes in progress as Robinhood democratize trading. This software is used to replace the brick and mortar offices that make large stockbrokers charge that the benefits for the elimination of small investors.
These A-listers will also help RobinHood with what he does next. He received hundreds of thousands of users with related bank accounts, SEC brokerage statements and application ecosystem. This means that there are still many opportunities to steal business from the rich legacy of financial institutions, and to give the new owner of the money power of the poor, the young and all the rest.