More than 200,000 Robinhood clients have already expressed their intent to utilise its new fractional stock trading app announced yesterday.

Vladimir Tenev, co-founder at Robinhood, said that the clients were "already in line" for the app, because the early signs as "really promising," CNBC reports Dec. 13. Later on Robinhood's user base recently crossed 10 million accounts, the firm is now valued at $7.six billion and plans to aggrandize its business to the United Kingdom, according to recent data.

Robinhood users can buy slices of Amazon shares and ETFs for just $1

Robinhood, a major California-based financial services firm that is known for its zero-fee crypto trading app, has announced its plans to launch fractional stock-trading on Dec. 12.

According to a written report by Business organization Insider, Robinhood will outset rolling out the service to certain customers on Dec. xvi. The feature will besides permit users to invest in portions of substitution-traded funds (ETFs), the report notes.

By launching the service, Robinhood apparently wants to attract showtime-time investors as the app volition permit to buy slices of a share in pop companies such every bit Amazon — which trades at $i,765 per share at press fourth dimension — for simply as depression as $i.

Tenev said:

"In item, with this feature, we see customers' optics light up when they deposit $10 or $100 and the entire universe of stocks that they would similar to invest in, or stocks that correspond companies that brand products they love, is available to them."

Other big firms offering like services

Robinhood is non the showtime firm to allow investors to buy small pieces of major stocks though. In late October, Twitter CEO Jack Dorsey's financial services firm Square announced it will offer users the power to merchandise fractions of a stock for as little as $1 on its Cash App. Prior to that, United states-based investment giant Charles Schwab announced a similar initiative on Oct. 17.

Equally reported on November. 22, American fiscal services giant JPMorgan appear a like initiative, assuasive accounts with less than $v,000 in ETFs and cash balances to trade both whole and fractional shares.

According to Concern Insider, Robinhood'southward product director Abhishek Fatehpuria declined to reveal when the company started working on fractional shares, noting that they take been thinking virtually the initiative "for a while."

The news comes after Robinhood voluntarily decided to withdraw its bank lease application with the Office of the Comptroller of the Currency in late November before applying for it in April this twelvemonth.