Can I buy shares in Robinhood?
Image source: Getty Images. Robinhood, the popular US stocks and shares trading app recognised for its role in democratising the investing landscape through its zero commission policy, has filed for an initial public offering (IPO). Its safe to say that its one of the most hotly anticipated IPOs in the US this year. Robinhood shares are not yet available in the UK. However, we thought it would be helpful to share what we know about Robinhoods IPO so far and whether youll be able to buy shares in the company. Compare stocks and shares ISAs If youre planning to open a stocks and shares ISA, choosing the right platform is important. To help you narrow down the choices, weve created a list of some of the top stocks and shares ISAs. Robinhood (not to be confused with Robin Hood, the legendary outlaw in English forklore) is a trading and investing app and website that particularly targets novice investors wanting to dip their toes into stock investing. Founded in 2013, Robinhood is famous for being the first trading platform to introduce a zero commission policy for stock trading, pushing other big firms to follow suit. The platform is popular among investors due to its sleek, user-friendly design. Moreover, the app has no minimum account balance requirement. Robinhood also allows users to trade fractional shares and cryptocurrencies. The firm soared in popularity during the pandemic as investing mania gripped the public. In 2020, it turned a profit of $7.45 million (5.36 million) with a revenue of $959 million (691 million). Early 2021 saw the platform increase its number of users from 13 million to 18 million in the first quarter. The company also earned $522 million (447 million) in revenue in the first quarter of 2021, a 309% increase from the amount earned in the same quarter in 2020. It looks like Robinhood plans to launch its IPO sometime in July 2021. The company will list its shares on the Nasdaq exchange under the ticker symbol HOOD. According to news reports, Robinhood plans to raise $100 million (72 million) from the IPO. This would value the company at $40 billion (29 billion). However, at the time of writing, the company has not disclosed the price at which the shares will be listed. Most IPO stocks are typically only accessible to a select few high-net-worth and large institutional investors. Robinhood, however, plans to do things differently. The company wants to involve retail investors from the get-go. Through the IPO Access programme, eligible US retail investors on the platform will be able to buy Robinhood shares at the set IPO price before they start officially trading on the secondary market. The company is setting aside as much as 35% of its Class A shares for retail investors on its platform. Here in the UK, if you wish to buy Robinhood shares, you will have to wait until they are listed on the secondary market after the IPO. When shares are available, you will then be able to buy them using a share dealing account that has access to the Nasdaq. If you dont have such an account already, check out our top picks for top-rated share dealing accounts in the UK. These all-too-common investing errors can cause you to miss out on the long-term wealth-building power that shares can hold. To help you side-step these pitfalls, and move forward on your path to wealth-building, weve created a free report, The 3 Worst Mistakes New Investors Make. Just enter you best email below for instant access to your free copy. Click here! This is largely a personal decision. Its worth noting that recently, Robinhood has been embroiled in a slew of scandals. The company came under fire during Januarys GameStop saga after it restricted trading and prevented individual investors from buying the video game companys stock, causing its value to plummet after it had soared 1,700% in a matter of days. In the aftermath of the saga, Robinhood reported a net loss of $1.4 billion (1.01 billion) for the quarter. A few days before the IPO filing, Robinhood was hit with a $70 million (50.8 million) fine by US financial regulators for systematic supervisory failures that apparently harmed thousands of consumers. Despite these recent troubles, Robinhoods popularity continues to increase. This could indicate that investors still have confidence in the companys future prospects. If you are thinking of buying Robinhood shares, make sure you do your research. It might also be a good idea to seek professional advice if you need it. If youre new to the world of investing, check out our helpful guide on how to get started. Get a free initial review lasting up to 1 hour, plus 50 off any follow-up advice. MyWalletHero has sourced you a 50 discount off the cost of advice when you find an independent or whole-of-market financial adviser through Unbiased.co.uk*. All advisers are FCA-regulated, qualified and give fully unbiased advice. To find yourself an adviser fast and for free  use the Unbiased matching tool. Find an adviser now! *This is an offer from one of our affiliate partners. For more information on why and how we work with partners, click here. About the author Sean LaPointe Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.