July report showed a significant drop in crypto activity.
However, the company has managed to increase its active customer base.
The decline
in cryptocurrency market activity is felt not only by cryptocurrency exchanges
but also by companies in the retail trading sector. Robinhood (NASDAQ: HOOD),
the American commission-free online trading provider, reported a decrease of 38% in
total trading volumes in the digital asset market compared to the
previous year. Daily Average Revenue Trades (DARTs) also declined, dropping 33%
year-over-year (YoY).
Robinhood Reports Decline
in Crypto Market Activity
Yesterday
(Wednesday) evening, Robinhood released its operational data summary for July
2023. The report shows that although total trading volumes in the crypto market
modestly increased month-over-month (MoM) to $3.4 billion, they significantly
declined compared to the $5.5 billion reported in July 2022.
However,
total trading volumes, including the equity market and options contracts, increased considerably. Compared to June 2023, they grew by 3% to $69.2 billion
and increased 42% YoY from $48.4 billion.
The
situation for DARTs was similar. The total value increased by 31% YoY from 1.3
million in July 2022 to 1.7 million in July 2023. However, for the crypto sector
alone, there was a decline of 33% from 0.3 million to 0.2 million corresponding to the same timeline.
Growth in Account Numbers
and Active Users
Looking at
other statistics provided by Robinhood, the platform managed to increase the
number of Net Cumulative Funded Accounts (NCFA) to 23.2 million by the end of
July. This translates to a growth of around 50,000 compared to the previous
month and 300,000 compared to last year.
There was
also a slight increase in Robinhood's Monthly Active Users (MAU). The 11 million
reported for last month is an increase of 200,000 compared to June.
However, when compared to the previous year's results, there's a noticeable
decline of 17% from 13.2 million users.
Robinhood
significantly increased the number of Assets Under Custody (AUC). On a monthly
basis, the growth improved 6% reaching $94.5 billion, and on an annual basis, there was 27% growth from $74.6 billion. Last month, clients' Net Deposits amounted to $1.4 billion,
which is $400 million more than in June 2023 and twice as much as what was attained in July 2023.
Robinhood Battles
Decreasing User Activity
The
decrease in retail investor trading activity prompted Robinhood to undergo its
third round of layoffs over the last year. The pioneer of commission-free
trading for individual investors announced in an internal memo that the layoffs
would affect 7% of staff, approximately 150 individuals.
According to the second quarter's results, after posting a substantial net loss of $511 million in the first quarter of the year, Robinhood bounced back with a net income of $25 million. The American commission-free online trading
provider witnessed a revenue surge of 10% to $486 million in the last quarter.
However, despite marking its fifth consecutive quarter of revenue growth,
Robinhood's monthly active users decreased 1 million to 10.8 million.
To
revitalize activity among the current retail investors, Robinhood pioneered the
introduction of 24/5 trading on single-name stocks in the USA. The popular
trading platform launched the 24 Hour Market service in May. After a
testing phase, it is now accessible to all Robinhood users.
This
decision to extend the service to all its customers came shortly after another
retail trading giant, eToro, integrated extended-hours stock trading into its
offerings.
The decline
in cryptocurrency market activity is felt not only by cryptocurrency exchanges
but also by companies in the retail trading sector. Robinhood (NASDAQ: HOOD),
the American commission-free online trading provider, reported a decrease of 38% in
total trading volumes in the digital asset market compared to the
previous year. Daily Average Revenue Trades (DARTs) also declined, dropping 33%
year-over-year (YoY).
Robinhood Reports Decline
in Crypto Market Activity
Yesterday
(Wednesday) evening, Robinhood released its operational data summary for July
2023. The report shows that although total trading volumes in the crypto market
modestly increased month-over-month (MoM) to $3.4 billion, they significantly
declined compared to the $5.5 billion reported in July 2022.
However,
total trading volumes, including the equity market and options contracts, increased considerably. Compared to June 2023, they grew by 3% to $69.2 billion
and increased 42% YoY from $48.4 billion.
The
situation for DARTs was similar. The total value increased by 31% YoY from 1.3
million in July 2022 to 1.7 million in July 2023. However, for the crypto sector
alone, there was a decline of 33% from 0.3 million to 0.2 million corresponding to the same timeline.
Growth in Account Numbers
and Active Users
Looking at
other statistics provided by Robinhood, the platform managed to increase the
number of Net Cumulative Funded Accounts (NCFA) to 23.2 million by the end of
July. This translates to a growth of around 50,000 compared to the previous
month and 300,000 compared to last year.
There was
also a slight increase in Robinhood's Monthly Active Users (MAU). The 11 million
reported for last month is an increase of 200,000 compared to June.
However, when compared to the previous year's results, there's a noticeable
decline of 17% from 13.2 million users.
Robinhood
significantly increased the number of Assets Under Custody (AUC). On a monthly
basis, the growth improved 6% reaching $94.5 billion, and on an annual basis, there was 27% growth from $74.6 billion. Last month, clients' Net Deposits amounted to $1.4 billion,
which is $400 million more than in June 2023 and twice as much as what was attained in July 2023.
Robinhood Battles
Decreasing User Activity
The
decrease in retail investor trading activity prompted Robinhood to undergo its
third round of layoffs over the last year. The pioneer of commission-free
trading for individual investors announced in an internal memo that the layoffs
would affect 7% of staff, approximately 150 individuals.
According to the second quarter's results, after posting a substantial net loss of $511 million in the first quarter of the year, Robinhood bounced back with a net income of $25 million. The American commission-free online trading
provider witnessed a revenue surge of 10% to $486 million in the last quarter.
However, despite marking its fifth consecutive quarter of revenue growth,
Robinhood's monthly active users decreased 1 million to 10.8 million.
To
revitalize activity among the current retail investors, Robinhood pioneered the
introduction of 24/5 trading on single-name stocks in the USA. The popular
trading platform launched the 24 Hour Market service in May. After a
testing phase, it is now accessible to all Robinhood users.
This
decision to extend the service to all its customers came shortly after another
retail trading giant, eToro, integrated extended-hours stock trading into its
offerings.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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