Millennials are flocking to Robinhood
Online investing app Robinhood, which is best-known for its commission-free trades, fractional share investing, and gifting of free shares of stock to new members, has been particularly popular among younger investors. With an average user age of 31, Robinhood gained an estimated 3 million new users in 2020.
In one sense, it’s fantastic to see young investors putting their money to work in the greatest wealth creator on the planet. Historically, the stock market has doubled about once every decade, including dividend reinvestment. Over four decades, an initial investment would increase 1,500%, hypothetically assuming that the historic average return holds true.