Retail investors on Robinhood to buy IPO shares with launch of IPO Access

Karthik Subramanian

Robinhood, the US stock trading app that is loved by the latest generation of stock traders and investors, has announced the launch of IPO Access which gives retail traders a chance to buy into initial public offerings (IPOs).

Marketing FX as an Alternative to Volatile Stocks

The general public has very limited access to buying shares through IPOs and these are generally allocated to major investors and companies. The amateur investors and traders have access to these shares only after they have started trading at the exchanges.

Robinhood seeks to bring these IPOs to the smaller traders as well by partnering with investment banks and getting a specific number of shares allocated for itself.

The users will be able to browse through the range of IPOs that are ongoing at any point in time. They can also gather more details about the IPO and the company details as well. Then they can choose the IPO that they want to invest in and the price range that they want to buy and also the number of shares. Once the prices are set, they can adjust or cancel the order as they deem fit.

Once the above is done, the users need to wait and see whether they get any of these shares allocated. Very few shares are available to the public through this method but everyone gets a shot at getting their hands on the IPO shares irrespective of the size of their account or the investment. This way, Robinhood hopes to create a level playing field for everyone.

It has to be noted that Robinhood itself is planning to go public in the near future and it remains to be seen whether the traders in Robinhood will get a chance to buy Robinhood IPO shares as well. The app has been pretty popular with the younger generation as its features have been designed in keeping amateur traders in mind.

Generally, the prices of IPO shares tend to rally during the day of listing and so far, the retail traders have been missing this action. In fact, many of the retail traders catch this action right at the top and end up losing more than they gain. All the gains are generally lapped up by the major investors and institutions leaving the retail traders to fight for the crumbs.

Now, with this, the retail traders also have a chance to make some good gains during the day of the listing and they can also participate in the market action with the stocks that they have bought.

Read this next

Retail FX

Investors from Cyprus and Dubai acquire ‘significant stake’ in M4Markets

Seychelles-regulated brokerage firm M4Markets firm has picked up some investment from Cyprus and Dubai based investors in a new funding round that it will be using to grow its business.

Executive Moves

UAE broker Amana elevates Amr Masry to sales director

Amr Masry has been promoted to a new senior role at Amana Capital, becoming the group’s newest Sales Director, following a successful tenure with the UAE-based FX and CFDs broker.

Executive Moves

TopFX promotes Omar Al-Janabi to head of sales and business development

Prime brokerage firm TopFX has strengthened its Middle East operations with the promotion of Omar Al-Janabi, who is taking on an expanded role as global head of sales and business development.

Retail FX

Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Digital Assets

Crypto derivatives giant BitMEX launches spot market

Crypto exchange BitMEX is looking to branch out of its singular focus on crypto derivatives with a suite of new product offerings. Although derivatives are to remain at the heart of BitMEX’s business, the popular platform will add spot crypto trading as it aims to aggressively grow their user base.

Uncategorized

PrimeXM reports mixed trading volumes for April

PrimeXM has reported weaker trading volumes for April 2022, in line with other institutional and retail platforms that saw the activity of their clients dropped compared to a month earlier.

Digital Assets

DLT Finance approved by BaFin to support brokerage and custody of digital assets

DLT Finance is already partnered with big names within the digital asset space, including Kraken, Bitstamp, B2C2, and Bittrex.

Institutional FX

LUKB taps vestr to launch actively managed products, AMCs

The partnership with vestr goes to show the growing importance of digitising the active investment management space.

Digital Assets

Jewel taps Tokeny to launch stablecoin-as-a-service solution on Polygon

Jewel aims to offer a stablecoin-as-a-service solution to other digital asset and financial institutions B2B, allowing those businesses to provide cheaper, easier and near real time payments with stablecoins issued and redeemable directly at the bank level at Jewel.

<