Vladimir Tenev, CEO of Robin Hood, says he is considering offering a retirement account in the United States.

Robin Hood is considering opening a retirement account in the United States, CEO and co-founder Vladimir Tenev said in a webcast on Saturday.

The online brokerage platform has approximately 18 million funded investment accounts, most of which are held by retailers.

Providing a personal retirement account (IRA) and a loss IRA provides tax benefits to those who save for retirement. Robin hood Develop a vast market. According to the Investment Company Institute, Americans held $ 12.6 trillion in IRA at the end of March, an increase of 2.8% from the end of December.

“We are interested in building more account types, including IRA and Loss IRA. We have heard a lot from our customers. We are a first-time investor and a long-term investor. I want to. ” Tenev He answered the investor’s question.

Due to the penalties associated with withdrawing money, the IRA tends to attract long-term investments rather than a quick reversal of stocks, options and cryptocurrencies that some investors rely on Robin Hood.

But in his webcast, Tenev said:

Robin Hood, which is targeting an IPO of up to $ 35 billion, says it will allocate 20% to 35% of the shares offered to its users. This is a rare move to get attention. Recruitment. One of the reasons many IPOs enjoy trading pop on the first day is that Robin Hood invited private investors are excluded and they have to buy stocks on the open market.

Robin Hood launched an IPO access platform earlier this year, allowing users to buy other companies’ IPOs if they can negotiate with them.

Some retail investors want a boycott of Robin Hood’s IPO. Reddit Other social media on the handling of the January “meme” stock trading frenzy.Robin Hood imposes restrictions on purchases GameStop The other shares that the hedge fund was betting on were needed for the financial and operational stability of the platform.

Tenev said in a Saturday webcast that Robin Hood had invested in platform stability to avoid another such incident.

Order flow payment

Robin Hood’s popularity has skyrocketed over the past 18 months of social restrictions caused by the coronavirus, keeping many retail investors home. Its mission is to “democratize everyone’s finance” by allowing users to trade stocks, exchange-traded funds, options and cryptocurrencies indefinitely and without fees.

FCMs have been criticized for relying on “payment of order flows” for most of their revenue. In this case, you will receive a commission from the market maker to route the transaction and will not charge the user for individual transactions.

Critics argue that the practices used by many other brokers create conflicts of interest because they motivate brokers to send orders to those who pay higher fees. Robin Hood argues that it is more expensive to route transactions and charge fees based on what is cheapest for the user.

Robin Hood’s Chief Financial Officer, Jason Warnick, left the door open for the company to change practices as needed.

“We believe Robin Hood and the industry will adapt and explore other sources of income if bans and other restrictions are imposed,” Warnick said.

Robin Hood was founded in 2013 by Stanford University roommates Tenev and Baiju Bhatt. These members will hold nearly two-thirds of their voting rights after recruitment.

Robin Hood’s customer, Minjie Xu, who works as a software engineer in Missouri, wasn’t impressed after a presentation about concerns that the offer was too expensive.

“I think most IPOs are overpriced, so this isn’t unique to them,” Xu told Reuters.

© Thomson Reuters 2021 Vladimir Tenev, CEO of Robin Hood, says he is considering offering a retirement account in the United States.

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