Robinhood Disrupted the Investing Industry. Why it Needs Disrupting Now.
Updated: May 20
How All of Us is fixing What Robinhood Got Wrong
One of the most common questions we get here at All of Us is “how are we different from Robinhood?” It’s a valid question. After all, Robinhood stormed the investment scene with its official launch in December of 2014, promising what no one had done to date - to make financial markets more accessible to the average, and even novice, trader.
The challenge of being the "first-mover"
Robinhood was the first to apply commission-free trades and no account minimums, all through an easy-to-use mobile app. The company was so successful in changing perceptions, it forced longtime market leaders - including Schwab, eTrade and TD Ameritrade - to make commission-free trading the de facto industry standard.
Despite Robinhood’s meteoric rise, the company has faced its own backlash. Glitches to its platform, hiccups with regulators and exposure on the kind of money it makes selling order flow to high-frequency traders have left many users feeling betrayed by what initially seemed like an entirely new, ‘anti-Wall Street’ approach to trading. Now, with no-fees trading available everywhere, Robinhood faces stiff competition while the big guys are swooping in to offer the latest in investment trends, such as fractional trading, faster than Robinhood can.
Building a better mousetrap.
So how does All of Us fit into this noisy environment where competition is fierce and market leaders have been around for decades? Does the investment industry need another disruptor? Yes it does, and here’s why.
For too long the trading process has lacked any measure of transparency. When Robinhood first came on the market it seemed as though that would change. Being first to offer no-fee trading gave the company an instant, disruptive air. Customers assumed Robinhood’s ‘no fee’ approach made them a new kind of broker - honest, transparent and on their side. When it was exposed just how much Robinhood was making from trader activity, investors felt blindsided and betrayed.
There is nothing wrong with Robinhood’s revenue model - in fact, it’s how many brokerages make money. But just because something isn’t wrong doesn’t mean there isn’t a better way. And just because a company disrupts the status quo doesn’t mean it shouldn’t be disrupted even more.
We created All of Us Financial for one driving reason - to build a Wall Street for the rest of us, where investors' interests come first, not financial institutions. You might say we’ve picked up where Robinhood left off - to be more open about the differences between ‘free’ trading and ‘fair’ trading. To give investors real-time knowledge of how much money is being made on your investments, to return far more of that profit to you directly, and to separate us from the masses of ‘free trading.’
All of Us versus Robinhood. A head-to-head comparison.
Truth in investing
All of Us stands for radically different principles from Robinhood like real transparency. Fair trading. Working for the best interests of our customers. True investor empowerment.
Robinhood, by contrast, still keeps much of their revenue model a mystery.
All of Us is disrupting this status quo by always putting the total amount we make from each investor front and center on the platform. We’re promising each of our investors a share in the revenue streams they help generate and we’re creating a community where investors can learn and benefit from one another.
For those who have grown disillusioned with Robinhood's sleight of hand, join the movement at All of Us and help rewrite the rules by putting your rights as investors before the wants of Wall Street.