Robinhood, the app that hopes to inspire a new generation of investors with cost-free stock trading, just raised $50 million from new and existing investors.
Aptly named after the hero-outlaw who took from the rich to give to the less fortunate, Robinhood the app is getting money from willing rich investors to allow mostly young or first-time investors to buy and sell stocks without the usual burden of fees, which can run between $7 and $10 per trade.
The startup announced Thursday that it had raised $50 million in a new round led by New Enterprise Associates (NEA). Existing investors Index Ventures, Ribbit Capital and Social Leverage joined the round, along with new investor Vaizra Investments, bringing total funding to date to $66 million.
Robinhood also announced that Australia would become its first expansion into the international market.
“Since our December launch, hundreds of thousands of people have joined Robinhood, with 25% of them being first-time investors,” the company said in a blog post. “Collectively, our community has saved over $12 million in commissions and transacted over $500 million through our platform.”
Vladimir Tenev and Baiju Bhatt founded the no-fee trading app, inspired by the 2011 Occupy Wall Street movement.
Robinhood allows customers to buy and sell U.S. stocks and ETFs, customize watch lists, place market orders, and track data in real time. If you want premium services such as margin lending, however, will have to pay a fee.
If you’re wondering how Robinhood makes money, the company tells you on its website. It collects interest from customers who choose to upgrade to a margin account. And it accrues interest from customers’ uninvested cash balances.