Robinhood Turns To Good Old Incentives To Push Trading Volumes Higher

Robinhood Markets HOOD is now exploring old techniques to promote trading on its platform.

What Happened: The trading platform will receive a bonus when they transfer assets from another account to Robinhood by Dec. 8, 2023.

The company, which recently expanded its crypto trading services in Europe, will add 1% to its brokerage cash balance based on how much is transferred, with no cap on how much you can earn.

Price Action: At the time of writing, HOOD shares are trading 2% higher and it reported an 16% drop in the past five-day trading session.

Why It Matters: Robinhood seems to have taken this step amid Q3 transaction revenue related to stock trading seeing a drop of 13% from the prior year period.

Monthly active users narrowed 16% to 10.3 million in Q3, while trading volumes in the crypto space saw a 24% drop from Q2 and a 53% decline from the year-ago period.

Not only is the company trying to add value to products like Robinhood Gold, but it is also looking to branch out into new products like retirement accounts.

Robinhood's senior director of investment strategy Stephanie Guild will be a panelist at Benzinga's Fintech Deal Day event, speaking on the discussion, “Strategies for Encouraging Financial Literacy and Behavior Change.”

Robinhood's Steve Quirk will also be a featured speaker for the panel, “Improving Market Accessibility: The Future of Trading Platforms and Tools.”

Don't miss hearing what they have to say. Industry titans BlackRock, DTCC, OCC, State Street, Société Générale, Hedera, Citi, BMO, Northern Trust, Citibank, Amazon, S&P Global, Google, Invesco, and Moody’s will also join our Nov. 13 Fintech Deal Day and Nov. 14 Future of Digital Assets event. Secure a spot here to join them.

Image: Shutterstock