Robinhood Helps New Investors With New Feature That Generates Personalized Trading Suggestions
Robinhood has launched a feature that will generate investment recommendations for newbie investors.
The trading application stated in a blog post On Tuesday, he introduced a feature called First Trade Recommendations to “help new investors start their financial journey.”
New Robinhood users who have not yet made a transaction can complete a questionnaire about their investment goals. Based on their responses, the app will recommend a “small diversified portfolio of four exchange-traded funds” that will provide exposure to domestic and international stocks and the US bond market.
First-time investors can then find out more about each ETF – like number of stocks, annual returns, and expense ratio – before investing as little as $ 20, Robinhood said.
“It allows customers to learn by doing,” Robinhood said in the post. “They can determine how much (or how little) they are comfortable with investing and putting their knowledge into practice.”
For those who need even more help, the commission-free trading app has added a feature called “Visits” which will walk through essential investment terminology and symbols, such as ticks and charts. price.
“Participation is power,” the app said. “And we want to help more people start the New Year feeling empowered to start investing.”
Robinhood has been a popular trading platform for the wave of retail investors who first entered the market during the pandemic, although it has also had its share of negative publicity. The company was in the spotlight early last year for halting trading in even stocks like GameStop and other stocks as retail traders tried to ease the pressure. The move sparked backlash from users, a congressional hearing, and controversy over the order flow payment business model, in which market makers execute trades for retail investors and collect the money. difference between the bid price and the ask price.
Despite the negative headlines at the start of the year, the app went public in July 2021 at a valuation of $ 32 billion. The stock has since fallen about 22% and was worth $ 17.40 at Tuesday’s close.