That's right Robinhood the app with 10 million + users, today announced that they will be allowing their users to purchase fractional shares.
This is going to huge for Robinhood and will only serve to drive more users to the app.
Previously Robinhood had competition from companies like Stash which pretty much allows you to buy fractional shares of ETFs and some stocks. But Stash was never really much of a threat.
There are 3 main apps that's competing for the investment funds of Millennials and these are apps are M1 finance, Webull and Robinhood which is the largest of all three apps
Robinhood 's biggest competition I think was from M1 Finance. M1 Finance allows you to buy fractional shares and buy whole individual shares of pretty much any stock and it also allows you to reinvest you're dividends into fractional shares as well re-balance your portfolio and reinvest dividends in your under weighted holdings.
These features made M1 finance a real treat to Robinhood who did none of these things and as a result they garnered a few of Robinhood users who switched or opened up a M1 finance account.
Well today is the day that Robinhood claps back.
Back when Charles Schwab announced that they were going to acquire TD Ameritrade. I suggested on this blog that maybe Robinhood should think about acquiring M1 Finance, well I guess instead of acquiring M1 Finance they have decided to pretty much launch a counter-attack.
Let me know what you think of Robinhood announcing fractional shares today in the comment section below. Please like and share thank you.
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