43% Of Robinhood Users Have A FICO Below 650, Have Increased Investment By 2x In Spite Of Pandemic

Before we take a closer look at Robinhood itself, wanted to see how the platform stacked up against other popular platforms — like E-Trade, Schwab, and TD Ameritrade — when it comes to how much users were investing over the last 12 months.

E-Trade

E-Trade — one of the best-known and mostly widely used trading platforms — saw a more than 400% increase in average account balances among its users over the last 12 months. The average account balance among E-Trade users in Feb 20 was $1,716.39 and that number grew consistently over the last year, reaching its highest point yet in Jan 21 at $8,833.79.

Schwab

Like E-Trade users, Schwab users’ average account balances grew over the last 12 months. Users started the 12-month period with an average balance of $3916.61 and ended the period with an average balance of $13,918.89 — a more than 255% increase over 12 months.

TD Ameritrade

TD Ameritrade saw large increases in the early part of 2020. In those first months of the COVID-19 pandemic, markets were down, which meant investing was up. With what we know about TD Ameritrade (with its 11 million and counting high-FICO users) this makes sense.

Going into the summer of 2020, though, the average account balance of TD Ameritrade users dipped from its peak at $15.598.50 to a low of $13,104.00 in July. In spite of the more volatile growth, TD Ameritrade users ended the 12-month period with an 835% increase (from $1,574.90 to $14,718.80) in average balances.

Robinhood

And that brings us to Robinhood. The youngest, most-modern of the platforms, Robinhood saw a more modest increase than the other platforms with a nearly 350% increase in the average user’s balance amount over 12 months.

Robinhood Users by Credit Score

In the next section of our analysis, we took a closer look at Robinhood users to see how investing on the platform broke down by credit score.

Breakdown of Robinhood Users by Credit Score

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