Robinhood Reports 24 Million Users and $5.2 Billion in October Deposits
Robinhood, an American trading and clearing company, surpassed 24 million users globally last month, with October deposits reaching $5.2 billion.
The firm's latest financial report indicates that net deposits in October reflect a 41% annualized growth rate compared to September. Total net deposits for the past year reached $43.2 billion, indicating a robust 51% annual growth rate from October 2023. This increase aligns with Robinhood’s strategy to strengthen its position in the global financial market.
Robinhood's Crypto Trading Volume Soars 51% in October
In October, Robinhood experienced significant growth metrics, with assets under custody (AUC) hitting $159.7 billion, representing a 5% increase from September and an 89% year-over-year growth. The company attracted around 90,000 new funded accounts during the month.
“Net Deposits were $5.2 billion in October, translating to a 41% annualized growth rate relative to September 2024 AUC,” stated Robinhood in its report, highlighting substantial fund inflows from its expanding user base.
Trading metrics also improved, with equity trading volumes rising by 48% month-over-month to $126.4 billion and crypto trading volumes increasing by 51% to $5.6 billion. The options trading segment saw contracts grow 16% to 158 million in October.
This surge in crypto activity coincides with increased interest from retail and institutional investors, driven by the approval of bitcoin spot ETFs in the United States and Hong Kong. Additionally, Robinhood expanded its crypto offerings to Europe in October.
Robinhood Sees $50.8B in Equity Trading Volume
Year-over-year comparisons show even more significant growth, with equity trading volumes up 149% from $50.8 billion in October 2023 and crypto trading surging 143% from $2.3 billion during the same period.
These gains reaffirm the strong performance reported in Robinhood's Q3 2024 earnings, where revenue reached $637 million—a 36% increase compared to the previous year.
Contributing to this success are rising margin and cash sweep balances. Margin balances grew 13% month-over-month to $6.2 billion, while cash sweep balances increased by 4% to $25.5 billion. Revenue from securities lending climbed to $19 million, marking a 6% increase from September.
User engagement and deposit surges coincide with broader market shifts. Robinhood Markets Inc (NASDAQ: HOOD) stock rose over 7% during Monday's trading session, surpassing $34 per share, its highest level in three years.
This uptick correlates with a recent rally in Bitcoin, which has approached record highs of nearly $90,000.