Misplaced Pages

• Dpm715 (talk · contribs) has been paid by Robinhood, in consultation with BC1278 on behalf of Robinhood.
• BC1278 (talk · contribs) has been paid by Robinhood on their behalf.

1. In lead, change "It allows individuals to invest in public companies and exchange-traded funds listed on U.S. stock exchanges without paying a commission, purchase cryptocurrency, and plans to offer banking products."

to: "The company offers a mobile app and website that offers people commission-free investing in stocks, ETFs, and options through Robinhood Financial and commission-free crypto trading through Robinhood Crypto."

Note: This clarifies that service is available on both the web and through an app, and that the basic services is not limited to the U.S. stock exchange, but also includes options, cyrptocurriences and ETFs. As it stands, the article is misleading/incomplete. References to plans to offer banking products is speculative. Violates WP: CrystalBall

2. In the lead, change “Robinhood has over 6 million users” to “Robinhood has over 10 million customer accounts.”

Note: The prior statement is out of date.

3. Move in lead, "The company's main source of revenue comes from interest earned on customers' cash balances and margin lending.

to "History" section, in proper chronological order for 2017, as: "The company's main source of revenue in February 2017 came from interest earned on customers' cash balances and margin lending. It later added a "Robinhood Gold" subscription for a monthly fee. Bloomberg News reported in October 2018 that Robinhood receives almost half of its revenue from payment for order flow.

Note: this statement about interest being the primary source of revenue was true in February 2017, but isn't true anymore, which is why it's best in the History section, rather than the lead. I also added the date and made it past tense to further clarify. I added the additional sources of revenue that year since people will wonder how a free service makes money.

I also suggest moving the new sentence about order flow, above, from the "Controversy" section to here as it describes another way how the company makes money.

4. Edit, in “Controversies”, the following: "However, in a 2018 statement the company announced it was ending this form of revenue generation by developing its own in-house clearing agency.

to: "The company said in October 2018 it had started processing trades through its own clearing system, Clearing by Robinhood."

and Move it to the proper place in History, in chronological order.

Note: Company website is not a reliable source. Changed the source to a press account. Revised the statement so it is accurate, as per the reliable source. Neither the press account nor the website says anything about revenue from order flow.

5. Delete in lead: "but in May 2019, reports from Bloomberg and other outlets publicized Robinhood’s pursuit of an additional $200 million in funding, which could value the company in the $7 billion to $10 billion range.

Note: Speculative. Violates WP: CrystalBall

6. Delete in lead: "In September 2018, the company's co-founders announced plans to take the company public in 2019."

Note: Violates WP: CrystalBall.

7. In History add: “In July 2019, the company announced it had raised a $323 million Series E financing round at a $7.6 billion valuation.”

‘’’Note:’’’ Provides the most recent and accurate company valuation.

8. Change in History: "In December 2013 Robinhood launched out of stealth on the crowdsourced technology news website Hacker News, leading to articles about the company in TechCrunch, PandoDaily, VentureBeat, TheStreet and others."

to: "Robinhood announced an initial $3 million in seed funding in December 2013.”

Note: It is bad practice to name sources unless they represent opinion/analysis. That is not the case here. This is just fact-based reporting. It's also incorrect that the app launched "on Hacker New" -- the app has nothing to do with Hacker News. Hacker News published a Reddit leak of the sign-up page link when the app was in beta, according to the TechCrunch source - it is unrelated to the company. Also, one good source is enough. No need to cite four sources here.

9. Edit in History: “Initially the firm had a waiting list, and in under 30 days there were 100,000 signups. By September 2014, the waiting list had reached 500,000 people. In March 2015, the company announced those still on the waitlist could create accounts and any U.S. residents, 18 and older, could apply for an account."

to: "The app officially launched commission-free trading in March 2015, after having amassed a wait list of 800,000 people."

Note: This request includes deleting the first sentence. It is much clearer in the proposed language that this is the date when the product actually launched. And there's no need to mention the previous wait list number in September 2014, pre-launch, if the wait list number at launch in March 2015 is noted.

References

1. ^ Constine, Josh (December 18, 2013). "Robinhood App Will Offer Zero-Commission Stock Trades Thanks To $3M Seed From Index And A16Z". TechCrunch.
2. PYMNTS (December 4, 2019). "Robinhood Tops 10M Subscribers". PYMNTS.com.
3. Rooney, Kate (November 5, 2019). "Infinite Leverage - some Robinhood users have been trading with unlimited borrowed money". CNBC.
4. Fitzgerald, Maggie (4 December 2019). "Startup Robinhood Tops 10 Million Accounts Even As Industry Follows in Free Trading Footsteps". CNBC.
5. ^ MORRISSEY, JANET (February 18, 2017). "With No Frills and No Commissions, Robinhood App Takes On Big Brokerages". New York Times.
6. Kane, Logan. "Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders". Seeking Alpha. Retrieved 13 February 2019.
7. Kane, Logan. "Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders". Seeking Alpha. Retrieved 13 February 2019.
8. Constitine, Josh (2017-04-26). "Robinhood stock-trading app confirms $110M raise at $1.3B valuation". TechCrunch. Retrieved 2019-07-17. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
9. Foxman, Simone (October 16, 2018). "Robinhood Gets Almost Half Its Revenue in Controversial Bargain With High-Speed Traders". Bloomberg. Retrieved 18 January 2019.
10. "What's Clearing by Robinhood". Robinhood. Retrieved April 12, 2019.
11. Constine, John (2018-10-10). "Robinhood cuts trading fees, grows profits with in-house clearing". TechCrunch. Retrieved 2019-07-17. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
12. "Robinhood Is Set to Raise at Least $200 Million in New Funding". 2019-06-07. Retrieved 2019-06-07.
13. Constine, Josh. "Robinhood aims at IPO as the fintech startup seeks CFO". TechCrunch. Retrieved 11 January 2019.
14. Rooney, Kate (September 6, 2018). "Robinhood is on the path to IPO and is searching for a CFO". CNBC. Retrieved 11 January 2019.
15. Irrera, Anna (July 22, 2019). "Trading Startup Robinhood raises $323 million, achieving $7.6 billion valuation". .
16. Cite error: The named reference mainst was invoked but never defined (see the help page).
17. Matherson, Nate (December 17, 2013). "Robinhood Opens Investing Doors to Wall Street's 'Hood". TheStreet.com.
18. GRANT, REBECCA (December 28, 2013). "Robinhood's pitch to millennials: free stock trading". VentureBeat.com.
19. Matherson, Nate (December 17, 2013). "Robinhood Opens Investing Doors to Wall Street's 'Hood". TheStreet.com.
20. Touryalai, Halah (February 26, 2014). "Forget $10 Trades, Meet Robinhood: New Brokerage Targets Millennials with Little Cash". Forbes.
21. Wohlsen, Marcus (September 23, 2014). "New App Wants to Make Trading Stocks as Easy as Posting Selfies". Wired.
22. Roberts, Daniel (March 12, 2015). "Robinhood, an investing app, is luring stock-market newbies". Fortune.
23. Long, Heather (2015-03-12). "New Robinhood app offers free trading. Millennials jump in". CNNMoney. Retrieved 2019-07-17.

The company offers a mobile app and website that offers people commission-free investing in stocks, ETFs, and options through Robinhood Financial and commission-free crypto trading through Robinhood Crypto.
 Partly-approved.


Robinhood has over 10 million customer accounts.
 Approved.


The company's main source of revenue in February 2017 came from interest earned on customers' cash balances and margin lending. It later added a "Robinhood Gold" subscription for a monthly fee. Bloomberg News reported in October 2018 that Robinhood receives almost half of its revenue from payment for order flow.
Clarification needed.


However, in a 2018 statement the company announced it was ending this form of revenue generation by developing its own in-house clearing agency.
Clarification needed.


but in May 2019, reports from Bloomberg and other outlets publicized Robinhood’s pursuit of an additional $200 million in funding, which could value the company in the $7 billion to $10 billion range.
Clarification needed.


Delete: In September 2018, the company's co-founders announced plans to take the company public in 2019.
 Approved.Cite error: There are <ref> tags on this page without content in them (see the help page).


In July 2019, the company announced it had raised a $323 million Series E financing round at a $7.6 billion valuation.
Clarification needed.


Robinhood announced an initial $3 million in seed funding in December 2013.
 Partly-approved.


The app officially launched commission-free trading in March 2015, after having amassed a wait list of 800,000 people.
 Partly-approved.


___________

1. The information regarding pricing (or in this case, the price being $0.00) was not added. See WP:NOTACATALOG.
2. This was stated using the company's voice.
3. It's not entirely clear when these changes were made, or that the changes made necessarily negate the statement that the company receives almost half its revenue from payment for order flow (PfOF). Please clarify by activating the |quote= parameter in the citation template, and place within it the quoted passage from each reference which verifies the requested changes.
4. It's not clear what is meant by in-house clearing agency or how the creation of such an agency eliminates the prior generation of income via PfOF
5. This item could not be reviewed because the entire sentence that it is a part of has not been included with the request.
6. The term Series E has not been Wikilinked.
7. The text suggested to be removed was omitted, while the proposed text was not added because it did not state whom the funds originated from.
8. Only the date when trading began was added.