Robinhood has launched its own in-house clearing service to clear and settle trades, a step to fully control the technology and operations of its wealth management business. The new service required building a 70 person team at its new "Major Oak" clearing center in Florida. The $5.6 billion startup announced Wednesday that it has completed a two-year effort to build and launch its own in-house clearing provider that will allow it to save money and improve trading for its 6 million customers, cofounder and CEO Vlad Tenev told Business Insider.
Robinhood announced the launch of its own in-house clearing service on Wednesday. The new service required building a 70-person team at its new "Major Oak" clearing center in Florida. The two-year effort will allow the zero-fee brokerage to save money and better execute trades for its customers, a brokerage expert told Business Insider. In an interview, cofounder and CEO Vlad Tenev explained Robinhood's fight to become the Amazon of personal finance. Robinhood, the zero-fee stock trading app that helped kickstart a race to the bottom in brokerage fees, has a new weapon in its arsenal as it fights to become the Amazon of personal finance: an in-house clearing system.