The company highlighted a growth in funded accounts but a slight dip in assets under custody.
Trading volumes across equities, options, and crypto saw an uptick.
In a
detailed performance breakdown for October 2023, Robinhood Markets, Inc.
(Robinhood) disclosed a mixed picture of its operational health. While on one
hand, the number of active users was increasing, the value of assets they held
was decreasing slightly.
Moreover,
the retail trading company announced its new savings offering, introducing
5.0% Annualized Percentage Yield (APY) for Robinhood Gold Members.
Robinhood's October Data
Shows Mixed Financial Signals
The number
of Net Cumulative Funded Accounts (NCFA) marginally rose 30,000 in October,
totaling 23.3 million. However, the Assets Under Custody (AUC) experienced a
slight contraction of 2% from the previous month, at $84.6 billion. Despite
this, net deposits remained robust at $1.0 billion for the month, signifying an annualized growth rate of 14% against September's AUC.
Analyzing
the results on a year-over-year basis, we see that Robinhood's NCFA grew 2% from the
level of 22.9 million reported in October 2022, while AUC increased 21% from
$70.2 billion. On the other hand, users deposited $600 million more during the
same period a year earlier.
The data
emerged just under a week after Robinhood published its financial report for Q3
2022, in which it reported a net loss of $85 million and a decrease of 55% in
cryptocurrency revenues. However, the broker turned a profit of $25 million in the second quarter of the ongoing year.
Robinhood's Customer
Activity and Market Engagement
Robinhood's
platform sustained active user engagement, with October witnessing a noteworthy increase of 15% in Equity Notional Trading Volumes, which amounted to $50.8
billion.
Options
contracts traded were up by 11% to 96.6 million, and Crypto Notional Trading
Volumes leaped to $2.3 billion, marking a significant rise of 92% from September
2023. This surge in crypto trading aligns with the broader market trends where
digital currencies have been experiencing heightened volatility and interest.
Despite
these positive indicators, margin balances declined 3%, totaling $3.5
billion at October's end. Conversely, the cash sweep balances, indicative of
the cash management services efficiency, moved upward 2%, reaching $13.9
billion.
Robinhood Increases APY
for Gold Members
In the
meantime, Robinhood has announced an increase in the interest rate for its
Robinhood Gold service, now offering 5.0% APY, which is the company's highest
to date. This enhanced rate applies to both new and current Robinhood Gold
users, allowing them to accrue more interest on uninvested cash without
limitations on earnings. Additionally, non-Gold members have the option to earn
a 1.5% interest rate on uninvested brokerage cash by enrolling in the cash
sweep program.
"At
Robinhood, we're focused on passing value back to our customers so their money
works for them. The 5.0% APY rate is 8x
higher than the national average savings rate," the company commented.
Furthermore,
Robinhood Gold subscribers receive several additional benefits, including
larger Instant deposits of up to $50,000, a 3% bonus on contributions to IRA,
and access to real-time market data from Morningstar.
In a
detailed performance breakdown for October 2023, Robinhood Markets, Inc.
(Robinhood) disclosed a mixed picture of its operational health. While on one
hand, the number of active users was increasing, the value of assets they held
was decreasing slightly.
Moreover,
the retail trading company announced its new savings offering, introducing
5.0% Annualized Percentage Yield (APY) for Robinhood Gold Members.
Robinhood's October Data
Shows Mixed Financial Signals
The number
of Net Cumulative Funded Accounts (NCFA) marginally rose 30,000 in October,
totaling 23.3 million. However, the Assets Under Custody (AUC) experienced a
slight contraction of 2% from the previous month, at $84.6 billion. Despite
this, net deposits remained robust at $1.0 billion for the month, signifying an annualized growth rate of 14% against September's AUC.
Analyzing
the results on a year-over-year basis, we see that Robinhood's NCFA grew 2% from the
level of 22.9 million reported in October 2022, while AUC increased 21% from
$70.2 billion. On the other hand, users deposited $600 million more during the
same period a year earlier.
The data
emerged just under a week after Robinhood published its financial report for Q3
2022, in which it reported a net loss of $85 million and a decrease of 55% in
cryptocurrency revenues. However, the broker turned a profit of $25 million in the second quarter of the ongoing year.
Robinhood's Customer
Activity and Market Engagement
Robinhood's
platform sustained active user engagement, with October witnessing a noteworthy increase of 15% in Equity Notional Trading Volumes, which amounted to $50.8
billion.
Options
contracts traded were up by 11% to 96.6 million, and Crypto Notional Trading
Volumes leaped to $2.3 billion, marking a significant rise of 92% from September
2023. This surge in crypto trading aligns with the broader market trends where
digital currencies have been experiencing heightened volatility and interest.
Despite
these positive indicators, margin balances declined 3%, totaling $3.5
billion at October's end. Conversely, the cash sweep balances, indicative of
the cash management services efficiency, moved upward 2%, reaching $13.9
billion.
Robinhood Increases APY
for Gold Members
In the
meantime, Robinhood has announced an increase in the interest rate for its
Robinhood Gold service, now offering 5.0% APY, which is the company's highest
to date. This enhanced rate applies to both new and current Robinhood Gold
users, allowing them to accrue more interest on uninvested cash without
limitations on earnings. Additionally, non-Gold members have the option to earn
a 1.5% interest rate on uninvested brokerage cash by enrolling in the cash
sweep program.
"At
Robinhood, we're focused on passing value back to our customers so their money
works for them. The 5.0% APY rate is 8x
higher than the national average savings rate," the company commented.
Furthermore,
Robinhood Gold subscribers receive several additional benefits, including
larger Instant deposits of up to $50,000, a 3% bonus on contributions to IRA,
and access to real-time market data from Morningstar.
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.
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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 π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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FMAS:24 | Sneak Peak
FMAS:24 | Sneak Peak
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs 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.
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africaβs 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 π https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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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
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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