$HOOD
BREAKING: Robinhood has officially unveiled the bonus incentives they are offering for HOOD Week, which runs from now until October 27th.
- 2% match ACAT transfers if you have a $10K margin balance
- 3% match for retirement account transfers
- 2% match on joint account transfers
What does this mean for investors?
Well, these are REALLY juicy offers. Imagine you have a $1M IRA, youโd get $30K to transfer it into Robinhood. If you have a $100K brokerage account with a $10K margin balance, youโd get $2K to transfer. The margin balance part of this is very smart in my opinion โ $HOOD has increased margin balances by over 20% in the past 3 months, so they likely can make back the 2% match on bringing over users who are more likely to take advantage of their competitive margin rates.
In fact, if you have a $10K margin balance, you are almost certain to adopt margin with $HOOD given the rates you would get are better than any other brokerage, so if you are already using margin, it makes sense to use with Robinhood. This allows Robinhood to bring over larger accounts that tend to use margin (more AUC growth) and charge 5-6% on margin rates to make up for the 2% match.
Historically, these matches have been only been 1% so this HOOD Week seems to be a way for them to test out their unit economics and create a deadline to incentivize people to transfer in.
More transfers = more deposits, more gold subscribers, more margin balances, more trading volumes.
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