Robinhood Launches Social Trading Platform to Compete with Reddit Communities

Robinhood (NASDAQ: HOOD) brought to light plans for a social trading platform that lets users share live positions and trading performance, taking aim at Reddit's influential WallStreetBets community as the online broker pushes deeper into active trading services.

The company announced Robinhood Social at its annual HOOD Summit in Las Vegas, along with artificial intelligence-powered trading tools and expanded futures offerings. The social platform will launch by invitation to select U.S. customers early next year before expanding more broadly.Vlad Tenev, Chairman and Chief Executive Officer of Robinhood, Source: LinkedIn

CEO Vlad Tenev positioned the moves as part of transforming Robinhood into what he called a “financial superapp” beyond basic stock trading. It “is no longer just where you trade,” he added.

The announcement comes as commission-free brokers face pressure to attract and retain active traders who generate higher revenue through frequent transactions.

Robinhood Goes Social: Real-Time Position Tracking Differentiates Platform

Robinhood Social requires users to include actual trades when posting, with positions updating automatically as prices move. The platform will display verified profit-and-loss statements, daily performance metrics, and trading histories for followed users.Abhishek Fatehpuria, Robinhood's Vice President of Product Management

“We always thought it was something that we wanted to get into more of, especially with social and investing becoming more and more tied together,” said Abhishek Fatehpuria, Robinhood's Vice President of Product Management.

The platform will also feature profiles of public figures like politicians and hedge fund managers, populated through mandatory regulatory filings, even if they don't use Robinhood directly.

Robinhood traced the concept to its origins, noting founders Tenev and Baiju Bhatt initially envisioned an online investing community before launching their trading app. The COVID-19 pandemic accelerated retail investor interest in social media discussion around stocks, particularly on Reddit's WallStreetBets forum.

AI Tools Target Professional Traders

The company expanded its browser-based Legend platform with AI-powered features through “Robinhood Cortex.” Traders can now request custom technical indicators and market scanners using plain English, with the system building tools without requiring coding knowledge.

Robinhood also added futures trading to Legend, offering contracts on commodities, cryptocurrencies, and market indexes with commissions starting at 50 cents for Gold subscribers. The platform supports 40-plus CME Group products including S&P 500, oil, Bitcoin, and gold futures.

“With futures on Legend, you can trade directly on any chart or widget quickly and confidently as soon as you spot a trend, or you can trade on the ladder with the same elegant and intuitive experience you’ve come to expect since launching on mobile earlier this year,” the company commented in the official announcement.

Additional features include trading ladders for rapid order execution across stocks, ETFs, and crypto, plus device linking between mobile and desktop platforms. The company plans to introduce short selling capabilities in coming months, along with overnight trading for select index options.

Competition Heats Up for Active Trading Market

The social platform represents Robinhood's latest effort to compete with established players targeting active traders. Major brokers like Interactive Brokers and TD Ameritrade have long dominated the space with advanced tools and lower fees for frequent traders.

Robinhood's approach focuses on simplicity and integration across asset classes, allowing users to trade stocks, options, futures, crypto, and prediction markets within a single interface. The company emphasizes speed and ease of use over the complex features preferred by institutional traders. It also added tokenized stocks to its offering recently.

Moreover, Robinhood is still expanding its binary event contracts portfolio. Last month it expanded its prediction markets to include professional and college football in the US.

The social component aims to address authenticity concerns around trading advice shared on external platforms, where users can easily manipulate screenshots or fabricate positions. Robinhood's verified approach ensures posted trades reflect actual account activity.

Revenue Strategy Shifts Toward Active Users

The expansion supports Robinhood's strategy of generating more revenue per customer through increased trading activity and premium services. Gold memberships cost $5 monthly or $50 annually, providing access to advanced features and reduced futures commissions.

The company has evolved from primarily serving buy-and-hold investors to targeting more sophisticated traders who execute multiple transactions daily. Active traders typically generate significantly higher revenue through payment for order flow (PFOF) and margin lending.

Robinhood Social will launch without additional fees, funded through existing Gold subscriptions and trading revenue. The company expects broader platform availability to follow the initial invitation-only period, though specific timing remains undetermined.