In an attempt to draw the younger population into the investing world, multiple start-ups have launched platforms to disrupt the brokerage industry with the promise of low fees, low minimums and an easy-to-understand investment process. Breaking away from our traditional Broker Monitor coverage set, this report focuses on three of these disruptors—Acorns, Stash and Robinhood—to analyze the marketing tactics, fee structures and platforms that made these firms successful.
The platforms themselves feature an intuitive design and easy-to-understand trading and transferring capabilities, aiming to take the stress out of investing and make it interesting and enjoyable. The firms also encompass the mobile-first mindset of Millennials, as both Stash and Robinhood began as mobile-only platforms, and all three firms mostly promote the mobile apps on their public sites. The competitive fee structures and low minimums are also a big draw for lower net worth individuals. Acorns and Stash, micro-investing platforms, require a low $5 minimum and charge $1 per month for accounts with balances under $5,000. Robinhood stands out for charging no fees and requiring no minimums for its standard self-directed brokerage account.
New research from Corporate Insight. Visit here to read the entire report.