Courtney Carlsen, The Motley Fool

Sat, Jun 28, 2025, 1:39 AM6 min read

• Robinhood is popular among younger investors thanks to its user-friendly platform.

• The company is moving beyond reliance on trading activity by introducing features such as retirement accounts and competitive interest rates on uninvested cash to help stabilize its revenue.

• Robinhood has seen an increase in funded customers and platform assets, which has contributed to impressive earnings growth.

• 10 stocks we like better than Robinhood Markets ›

Investing in the stock market is a fantastic way to grow your wealth over time. As investors, it's essential to create a well-balanced portfolio that holds a diverse range of stocks, each with distinct characteristics. If you're on the younger side and have the luxury of time before retirement, you might consider being a bit bolder by focusing on growth stocks that have the potential for rapid growth.

One exciting growth stock to watch is Robinhood Markets (NASDAQ: HOOD). This financial technology company has been making waves over the past year, attracting a substantial number of customers and their funds to its platform. Robinhood has expanded its offerings by introducing retirement accounts and tapping into the latest trends in finance. Here's why now might be a great time to consider adding Robinhood to your investment portfolio.

Robinhood has established a strong reputation among younger investors like millennials and Gen Z, thanks to its platform, which has made investing accessible and engaging for a new generation. With its user-friendly app and appealing interface, Robinhood simplifies the investment process.

One of Robinhood's early advantages was being one of the first platforms to offer commission-free trading, fractional shares, and even 24/7 trading on many stocks.

Critics argue that the platform gamifies trading, potentially leading inexperienced users to make reckless decisions. Despite this concern, Robinhood has developed a user-friendly approach to investing, distinguishing itself from older, more complex platforms that would often charge high fees.

Robinhood paved the way, and many platforms followed suit by slashing their fees to stay competitive. Today, Robinhood remains one of the few platforms to offer commission-free options trading and has lower costs on futures and index options, as well as lower margin rates, compared to competitors such as Charles Schwab and E*Trade from Morgan Stanley.

Recently, Robinhood has expanded its services to include retirement accounts with a 3% match on contributions. Additionally, the platform offers cash management options with competitive interest rates and debit cards, in addition to its existing capabilities for trading stocks, ETFs, and cryptocurrencies.