Robinhood IPO Could Bring More Disruption for Traditional Brokerage Firms

Robinhood Market’s self-directed platform inarguably disrupted the discount brokerage industry with zero commissions, fractional trades, and its user-friendly app, and now some analysts are questioning whether its next target could be wealth management.

In a prospectus filed July 19, before its initial public offering expected July 29, Robinhood itself outlined some expansion plans that hint at more customer hand-holding. It expects to more than double the number of customer support specialists by hiring “hundreds of registered financial representatives” to serve in “customer experience sites,” according to a prospectus filed with the Securities and Exchange Commission.