Robinhood Markets, Inc. (NASDAQ:HOOD) said on Tuesday that it launched new margin rates based on a customer's margin balance, ranging from 5.7% to 6.75%.
Margin investing allows customers to borrow money from Robinhood and leverage their holdings to purchase securities, the company said in a statement.
"Whether someone has a balance of a few thousand dollars, or millions, they automatically have access to the lowest margin rates among leading brokerages with absolutely no haggling required," said Steve Quirk, Chief Brokerage Officer at Robinhood.
Robinhood stressed that margin can be a 'useful investing tool' that provides flexibility if a customer sees an opportunity in the market and wants to invest more right away without needing to make a deposit from their bank.
Under the latest development, Robinhood Gold subscribers will get their first $1,000 of margin with no interest.
However, Robinhood said that Margin investing access isn't' automatic, customers must apply and will only have access if they meet certain eligibility requirements.
Earlier this month, the company's CEO Vlad Tenev spilled the beans on its retirement offerings, which target users of every age, including the ever-elusive Gen Z.
The CEO underscored how Robinhood's offerings are a magnet for novice investors, with Tenev shining a spotlight on a groundbreaking survey revealing Gen Z's astonishing foresight as Gen Zers begin pondering retirement as early as 19 years old, Tenev told Yahoo Finance's Market Domination.
Tenev also emphasized Robinhood's retirement profile for individuals within five years of retirement age, stating that "the economics of the offer are irresistible to pass up."
Price Action: HOOD shares are trading higher by 1.13% to $21.08 at last check Tuesday.
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