Robinhood, eToro, Coinbase: a facelift on "trading" - Finance

Robinhood, eToro, Coinbase: a facelift on “trading” – Finance

Platforms like Robinhood, eToro or Coinbase appeal to young people. To put them back on the right track, Febelfin and Assuralia are launching an information campaign aimed at new investors.

The Robinhood trading platform prepares to go public on Wall Street. It has just filed its prospectus with the SEC, the American market authority. This application, which is not yet present in Belgium, claims 18 million active users. This is twice as much as a year ago. The average age of users is 30 years oldhalf are novice investors.

What appeals to young people in this type of platform is user experience. With just a few clicks on their smartphone, customers can buy and sell financial assets, with no transaction fees. The “Robin Hood” of trading promises not to take any commission from its clients. The platform is remunerated by other means, including premium subscriptions. The young public finds with this type of application a first gateway to the trading. Robinhood claims nearly $80 billion in assets traded on its platform. If successful, the company could reach a valuation of $40 billion, according to a Bloomberg analyst.

Caution

Robinhood also has a dark side: she was sentenced to fined $70 million for providing misleading information to its customers, and played a murky role in the Game-Stop affair. It is also heavily exposed to cryptocurrencies. These extremely volatile unregulated financial assets represented more than 17% of the total amount of transactions in the first quarter of 2021.

Besides Robinhood, many other platforms of trading online have developed. Some are complete scams which you must absolutely be wary of. The FSMA has just added to its list of suspect platforms on its website. Others, such as Robinhood, position themselves as “parallel” investment tools by betting everything on the young public. This is the case of eToro (20 million users, average age 34) or the cryptocurrency exchange platform Coinbase (56 million users).

At Febelfin and Assuralia, we also see this attraction of the platforms of trading with young people. In an attempt to steer them towards more “traditional” investment behavior, the two federations have just launched a new information campaign. The “Invest Club” aims to give tools to apprentice traders. “The goal is to allow investors to make an informed choice,” explains Rodolphe de Pierpont, spokesman for Febelfin. The campaign is available on social networks via videos accessible to the general public.

The two federations thus hope redirect newbie investors to established players, subject to Belgian regulations. In particular towards banks, which are stepping up their offensives towards a young audience with their own tradingsuch as Belfius and its new Re=Bel offer.

On the side of Febelfin, there is no comment on the Robinhood or eToro platforms. But we warn about the deregulated cryptocurrency market: “We will never advertise speculative products without any substance, such as bitcoin, tackle Rodolphe de Pierpont. We invite investors to be cautious”.

The Robinhood trading platform is preparing to go public on Wall Street. It has just filed its prospectus with the SEC, the American market authority. This application, which is not yet present in Belgium, claims 18 million active users. This is twice as much as a year ago. The average age of users is 30 years old, half are novice investors. What appeals to young people in this type of platform is the user experience. With just a few clicks on their smartphone, customers can buy and sell financial assets, with no transaction fees. The “Robin Hood” of trading promises not to take any commission from his clients. The platform is remunerated by other means, including premium subscriptions. The young public finds with this type of application a first gateway to trading. Robinhood claims nearly $80 billion in assets traded on its platform. If successful, the company could reach a valuation of $40 billion, according to a Bloomberg analyst. Robinhood also has a dark side: it was fined $70 million for passing on misleading information to its customers, and played a murky role in the Game-Stop affair. It is also heavily exposed to cryptocurrencies. These extremely volatile unregulated financial assets represented more than 17% of the total amount of transactions in the first quarter of 2021. Besides Robinhood, many other online trading platforms have developed. Some are complete scams to be absolutely wary of. The FSMA has just added to its list of suspect platforms on its website. Others, such as Robinhood, position themselves as “parallel” investment tools by betting everything on the young public. This is the case of eToro (20 million users, 34 years old on average) or the Coinbase cryptocurrency exchange platform (56 million users). At Febelfin and Assuralia, we also see this attraction of trading platforms for young people. In an attempt to steer them towards more “traditional” investment behavior, the two federations have just launched a new information campaign. The “Club Invest” aims to give tools to apprentice traders. “The goal is to allow investors to make an informed choice,” explains Rodolphe de Pierpont, spokesman for Febelfin. The campaign is available on social networks via videos accessible to the general public. The two federations thus hope to redirect new investors towards established players, subject to Belgian regulations. In particular towards banks, which are increasing their offensives towards a young audience with their own trading applications, such as Belfius and its new Re=Bel offer. On the Febelfin side, there is no comment on the Robinhood or eToro platforms. But we warn on the deregulated cryptocurrency market: “We will never advertise speculative products without any substance, such as bitcoin, tackle Rodolphe de Pierpont. We invite investors to be cautious”.

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