How Robinhood could take market share from brokerages like Schwab
Robinhood (HOOD) has announced the launch of a desktop platform and added futures and options trading to the app as it seeks to expand its platform and offerings for traders. Needham senior analyst John Todaro joins Market Domination to discuss the move and how it may help Robinhood compete against other brokerages. "This certainly broadened out the product offerings that Robinhood has, and I view it almost as a maturation of Robinhood. You look back in the equity market run post the pandemic, a lot of retail investors, it was their first time going into equities and some of the other products out there like crypto. You now fast-forward three, four years, these folks are clamoring for more advanced products. They now have four years of investing and trading under their belt. And so Robinhood is catering to that customer making sure they don't lose those customers as they get more mature in their trading process," Todaro tells Yahoo Finance. He believes the move could also help Robinhood take market share from more traditional brokerages like Charles Schwab (SCHW). Todaro notes that Robinhood has name recognition with younger investors, and is the "go-to platform" for that cohort. However, these new offerings allow the company to maintain more experienced investors seeking more advanced products. As Robinhood captured more market share, Todaro argues that the company competes in two areas: lower fees and product offerings. While Robinhood has not seen the same volumes as it did in 2021, he believes that the company has "some ground to make up" especially as interest rates fall. Watch the video above to hear how the election may impact Robinhood's crypto outlook. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Melanie Riehl
