United States based financial service provider and stock brokerage company Robinhood Markets Inc. is considering introducing U.S retirement accounts. This was revealed by the company’s chief executive officer, Vlad Tenev, during the past weekend while on a webcast with users of the company’s mobile trading app.
The company is set to have its initial public offering this week and users of its trading platform are anticipating taking part in the IPO.
Robinhood boasts of having 18 million funded investment accounts on its platforms. Just to note, most of these account belong to retail traders.
Tenev believes that offering individual retirement accounts (IRAs) and Roth IRAs which offer tax advantages to those saving for retirement will help the company tap into the rapidly growing market.
“We are interested in building more account types, including IRAs and Roth IRAs, we’ve been hearing that a lot from our customers. We want to make first-time investors into long-term investors,” said the CEO.
IRAs tend to attract long term investments due to the penalties involved with withdrawing money unlike investing in options, stocks and cryptos. The CEO added that they have evidence that most of their clients primarily buy and hold these securities.