Investing for the Next Generation

A recap of Robinhood’s virtual event on the state of investing 

Recently, we hosted a virtual event to discuss the state of investing today. After an unprecedented year in finance—from COVID-19 market volatility to historic market participation—we wanted to dive into how we can empower the next generation to take an active role in their financial futures despite these uncertain times. 

We were joined by Haley Sacks, Founder of Mrs. Dow Jones, and Lindsey Stanberry, Author and Managing Editor at CNBC, as well as some speakers from Robinhood. Here’s a recap of our top findings on the future of investing from the event. 

How to engage the next generation

Our panel discussed how they’re engaging younger generations to learn about and take control of their finances. Watch below as Haley Sacks and Lindsey Stanberry share the important role financial news and education plays in empowering people to build for their financial futures, and how they’ve been able to do this for their followers.

Understanding the gender gap in investing

The stock market is an engine for economic growth that we believe everyone should be able to participate in, but one group we believe is still underserved is women. To address this gender gap in investing, our Head of Research, Heather Breslow, and our Head of Core Product, Dheerja Kaur, came together to discuss the systemic barriers that have kept women out of the markets. They also announced the findings of Robinhood’s new survey data on women’s attitude towards investing, and considered the role we all play in empowering more women to invest. 

Here’s the full session:

Let’s take a look back

Before the days of zero commission fees across the industry, Robinhood was founded on the belief that everyone should have equal access to the financial system, not just the wealthy. We pioneered commission-free investing, building a mobile-first platform and making investing accessible through intuitive design, access to news, and digestible financial resources. 

Stock ownership has become more diverse than ever before, and we’ve helped open up investing for millions of people, particularly newer generations (the median age of a Robinhood investor is 31). Today, we’re a community of more than 13 million people, and about half of them tell us they’re first time investors. Though our work isn’t done, we’re proud of the progress we’ve made.

At Robinhood, we think personal finance should be as culturally relevant as music and the arts. We’re excited to facilitate more conversations on topics like women and diversity in finance, lowering barriers for entry into investing, and how we can engage and empower everyone to invest in their futures. 

Tweet us — Like us — Join us — Get help — Disclosures

The guest speakers are neither employees nor affiliated with Robinhood Markets, Inc. and its subsidiaries. The opinions expressed by the guest speakers are solely their own and do not necessarily reflect those of Robinhood Markets, Inc. and its subsidiaries.

Commission-free trading refers to $0 commissions for Robinhood Financial LLC self-directed individual cash or margin brokerage accounts that trade U.S. listed securities electronically. Keep in mind, other fees may apply to your brokerage account. Please see Robinhood Financial’s fee schedule at rbnhd.co/fees to learn more.

The State of Women Investors Today

New research reveals a gender gap in investing attitudes and behaviors 

At Robinhood, our mission is to democratize finance for all. We have always aimed to enable people to begin investing in the markets at their own pace and on their own terms. We’re delighted to have enabled so many people to take the first step—with investors becoming more diverse over the decade that Robinhood has been available. But there is much more to do.

We conducted a survey* to learn more about women’s attitudes, fears, behaviors and goals toward investing. We found that almost half of the women we surveyed (45%) have a favorable view of investing, but there are still barriers that prevent some from participating in the markets.

We want everyone to have the ability to participate, and we’re committed to providing the tools and resources needed for people to get hands-on experience, take action, and feel empowered to invest in their future. Let’s dive into our research findings. 

Women are taking charge of their financial decisions.

The overwhelming majority of women we surveyed (73%) have made a financial resolution to save more, which points to women wanting to be thoughtful and strategic about their finances.  

However, only 16% have made a resolution to invest more. Investing can be a powerful tool for building and accumulating wealth over time and achieving financial goals. So we looked at the reasons why women aren't looking to invest more:

• A strong majority of women surveyed (86%) would worry about losing money if they were to invest. 

• 52% of female respondents haven’t invested because they don’t feel they make enough money to invest.

• Women respondents also don’t feel comfortable investing large amounts of money—56% of them.

• Moreover, 29% of women surveyed say their concerns about investing would keep them from investing at all.

We believe there’s a huge opportunity to better educate everyone, not only women, on the potential benefits of investing. Financial institutions, investing platforms, and educational content all play a role in this. Robinhood provides some solutions to start small and learn about investing at any point in your financial journey.

Almost half of the women we surveyed haven’t invested because they don’t know where to start. Similarly, 43% of women haven’t invested because they think they don’t understand the stock market. 

We believe this gender gap can be solved in part through a foundation of financial education and hands-on investing experience. At Robinhood, we offer educational resources on the basics of investing and financial terms through our Learn resource hub, and dive into market trends and financial news on our Robinhood Snacks podcast, newsletter, and video series.

We believe more experience leads to more confidence.

According to the survey, nearly half of the women said they don’t believe they have what it takes to be a strong investor. Only 28% of women feel empowered to invest and 33% of women are confident in their ability to invest their money.

We believe hands-on experience could change these perceptions. While many women are interested in investing and view it favorably, fewer are getting direct experience investing. 3 out 5 of women we surveyed (60%) have never invested in individual stocks, mutual funds, options, bonds, crypto, or ETFs. 

You can start small and learn as you go. For example, with Robinhood’s Fractional Shares, you can invest with as little as $1. Recurring Investments can help you build investing habits over time, and we found that the most common recurring amount our customers set up is just $10. 

Let’s change the conversation.

Men are more comfortable trading knowledge and discussing their finances with others than the women we surveyed. Men are more likely than women to talk about finances with their immediate family, extended family, best friends, and partners. 

Discussions around finances with our loved ones can certainly help build financial confidence. Robinhood and other platforms can facilitate these conversations between all types of investors to help everyone prioritize their financial wellbeing.

Where do we go from here?

We believe women’s hesitation to participate and level of confidence reflects larger systemic issues that have been at play for decades: the gender pay gap, different cultural expectations, and the perception that investing tools and resources aren’t made or accessible for women. We’re determined to make investing accessible for all, and we’re here to provide the tools and resources people need to find a place in financial markets. 

Tweet us — Like us — Join us — Get help — Disclosures

*Survey Methodology: This poll was conducted between September 28-29, 2020 among a national sample of 2,200 Adults in the United States. The interviews were conducted online and the data were weighed to approximate a target sample of Adults based on Age, educational attainment, gender, race and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.

Recurring investments do not ensure a profit or guarantee against loss. Recurring investments may result in a purchase of fractional shares. Fractional shares are illiquid outside of Robinhood and not transferable. Not all investments available through Robinhood are eligible for recurring investments or fractional share orders.

Securities trading offered through Robinhood Financial LLC, a registered broker-dealer and Member SIPC, and a subsidiary of Robinhood Markets, Inc.

Invest in Your Future in Just a Few Taps

Create investing habits with Recurring Investments

Today, we’re excited to announce that everyone can create consistent investing habits with Robinhood Recurring Investments. We’ve been rolling this out over the last few months and now it’s available to all Robinhood customers. With just a few taps, you can schedule automatic investments on a recurring basis in thousands of stocks and ETFs (exchange traded funds that allow you to invest in a group of stocks) and potentially grow your investments for the future.

Setting up a recurring investment is intuitive, simple, and takes less than a minute. Pick your desired stock or ETF, choose any amount and frequency at which you’d like to invest—daily, weekly, biweekly, or monthly—and we’ll handle the rest. You don’t need a lot to get started—we found the most common amount invested with Recurring Investments is just $10.

For example, you can schedule a $10 weekly recurring investment in your favorite company—approximately the price of a cappuccino and pastry—and every week, we’ll purchase $10 worth of the stock while you sip on your delicious cappuccino. It’s simple and makes investing part of your routine. In fact, among people who’ve already been using the feature, many told us they set up recurring investments to invest in that company over the long term.

You can adjust, pause, or delete a recurring investment at any time, or set up additional recurring investments to help you build a diversified portfolio. Learn more.

Robinhood is here for you wherever you are in your financial journey. Recurring Investments are accessible for investors at all levels and have a wide range of benefits—whether you’re just getting started and looking to build responsible investing habits, or you’re working towards long-term investing goals. 

Tweet us — Like us — Join us — Get help — Disclosures

Introducing New Robinhood Widgets on iOS 14

Currently featured in the App Store!

Welcome to the wonderful world of widgets! 🌈 Widgets are a new feature with Apple’s release of iOS 14—these little boxes bring you the information you want directly to your iPhone’s Home Screen for quick and easy access. With Robinhood widgets, you can check on your portfolio, holdings, and more, without having to tap into the app. We're currently featured in the App Store—you can find us there.

Widgets are so simple to set up:

📱First, you’ll need to download iOS 14 on your iPhone, and ensure your Robinhood app is up to date 
🏠 Then, go to edit your iPhone’s Home Screen and tap the “+” symbol in the top left to add a Robinhood widget
🧐 Choose the type of widget you want and drop it into your Home Screen
👆If you ever need more details on your investments, simply tap on the widget to be brought into the app for more information

It’s that easy! You can place your Robinhood widget next to your other everyday apps or create an entire screen with your favorite Robinhood destinations. Learn more.

We hope Robinhood widgets will make it even easier to get the information you need while on-the-go. Download iOS 14 and update your Robinhood app today to get started!

Tweet us — Like us — Join us — Get help — Disclosures

Robinhood Snacks Launches New Video Series

Three minutes, two business stories, all in one video

Calling all Snackers 📣Robinhood Snacks, our podcast and newsletter which delivers the day’s top financial news stories to millions of people every weekday, is expanding into video. 

Starting today, Snacks will be launching a video series that will give you a rundown of our top two stories of the day in just three minutes—short, digestible financial news in a brand new, visual format. Plus, you’ll get to see the faces of our Snacks podcast hosts Nick Martell and Jack Kramer up close and personal on a regular basis—it may just be The Best One Yet. 

We’ll be releasing two episodes per week to start, and ramping up to more frequent episodes in the near future. You can find the Snacks video series on Instagram and YouTube, and catch the first episode today. If you haven’t had the chance to check out our newsletter and podcast, you can subscribe here. 

Financial news can feel intimidating—with Robinhood Snacks, we’re making it approachable, relatable, and engaging. With so much going on in the world today, we’re here to help you stay clued in, and we’re excited to continue expanding our educational resources like Robinhood Snacks. We hope you enjoy it!

Tweet us — Like us — Join us — Get help — Disclosures

An Update on Robinhood’s Options Offering

Our mission at Robinhood has been to bring opportunity, through technology, to help people invest, on their terms, on their mobile devices. We’ve introduced new access points to the markets and created space for people to learn about the financial world. Robinhood pioneered commission-free trading, and was the first to do so for options. 

With our options trading experience, we aim to provide investors with an intuitive and cost-effective platform to trade options, which includes enhanced educational materials on options trading. We offer commission-free options trading alongside stocks and ETFs to help customers manage all of their investments in one place. 

We’re always working to make improvements in the product and to enhance our communications to our customers. Over the last few months, we’ve been rolling out multiple updates to our Robinhood Options offering in an effort to deliver the best possible experience for our customers. We’ve also been sharing these changes with customers as we moved forward (recent updates here and here). 

Today we’re detailing all the progress made and upcoming changes to expect in the very near future.

Introducing In-App Exercise and Instant Exercise Features

We’ve added the ability to exercise contracts in the app. With in-app exercise, investors can exercise options contracts directly in the app to help avoid delays and trade restrictions. Funds and shares from exercises are available immediately during market hours.

In designing this experience, we were deliberate about adding more safeguards and information. For example, before exercising an option, customers will be asked to review their strategy, associated risks, and potential reasons to not exercise the contracts, in order to help them determine whether exercise meets their objectives. We also display alerts and available actions when exercising a contract. These features launched in the last few weeks and are fully rolled out to all options customers. 

Improvements to Early Assignment 

We’ve recently revamped the early assignment experience to include new guidance to help with early assignment scenarios. We’ve built a resolution flow that will guide customers through the potential actions of exercising a contract or trading shares to resolve an account deficit, and added the ability to contact support directly through the app. These changes are rolling out to customers now.

Additionally, we’ve rolled out changes to allow customers in certain cases to continue trading as soon as they take action on a potential restriction. We recently launched a self-service option to buy shares even if in a short position due to an early assignment. Previously, this was only possible by contacting support.

Updates to Buying Power 

We have begun rolling out improvements to how we show buying power in the app. If customers have an account deficit, we'll display the deficit and help them understand the actions they can take to resolve it in different trading situations. Our customer support team is fully trained to respond to customer questions about the new options experience including buying power display.

Options Trading Education

We have revamped resources on our Help Center to add more clarity, including content around options strategies, advanced options strategies, and more information on topics like early options assignments. 

We recently launched additional in-app messaging to help customers better understand the mechanics of early assignment, in which a customer trading a multi-leg options strategy has one leg of the position assigned for exercise prior to the expiration date. We also recently began rolling out a new onboarding experience to walk approved options customers through the foundations of an options spread before upgrading from Level 2 to Level 3 options trading.

We’ve hired an Options Education Specialist who will join our team later this month and will continue to support these initiatives, as well as provide educational guidance and expertise in our communication channels — from our website to social media to in-product.

Additional Eligibility Criteria

We're rolling out new financial criteria and revised experience requirements for new customers seeking to trade Level 3 options strategies. Robinhood requires customers wishing to trade options to disclose, among other things, investment experience and knowledge, investment objectives, and financial information such as income. Robinhood then conducts an assessment of this information in deciding whether a customer may be approved for options trading.

Investing in and Growing Customer Support

To ensure we continue to meet our customers’ needs, we recently announced we’re hiring hundreds of new registered financial services representatives this year in Denver, Colorado, Southlake, Texas, and Tempe, Arizona. Across all of our locations, we’re adding new team members, including dedicated options support representatives, to help us reduce response times, build more self-service tools, and enhance our informational and educational tools. 

We remain committed to providing the best investing experience and resources to help people on their financial journey. Please don’t hesitate to contact our support team for more information. 

Tweet us — Like us — Join us — Get help — Disclosures

Commission-free trading refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial’s fee schedule to learn more. Read more about how Robinhood makes money. 

Options trading entails significant risk and is not appropriate for all investors. Options transactions are often complex and may involve the potential of losing your entire investment. Investors should consider their investment objectives and risks carefully before investing in options. To learn more about the risks associated with options, please read the Characteristics and Risks of Standardized Options before you begin trading options.