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Robinhood Introduces AI-Powered Tools to Assist Users in Trading

Last Updated on July 10, 2024 by Hamza Khan

Robinhood users will soon gain access to AI-powered tools that offer more competent trades after the company acquired Pluto Capital. Pluto’s AI will provide personalized investment strategies, data analytics, and real-time insights. Below, we shed more light on Robinhood’s AI tools.

How Robinhood’s AI Tools Give Traders a Competitive Edge 

One key benefit Pluto’s AI tool will offer is seamless optimization of investors’ portfolios. The tool will achieve this by analyzing individual Robinhood users’ risk tolerance, investment objectives, and past trades. 

With access to real-time global financial data, including stock prices, news articles, company financials, and SEC filings, Pluto’s large language models can quickly identify trends and opportunities. Robinhood emphasizes that these features will give investors a competitive edge.

More Insights On Pluto and Robinhood

In August 2021, Jacob Sansbury founded the company Pluto in the San Francisco Bay area. Before that, Sansbury served as a technical lead and senior software engineer during his previous roles at NVIDIA. NVIDIA, which is renowned for its graphics processing and AI chips, briefly held the title of the world’s most valuable company in the past month.

Meanwhile, Robinhood has also recently made headlines with its $200 million acquisition of cryptocurrency exchange Bitstamp. This acquisition aims to expand services for institutional clients in the US. However, it is awaiting regulatory approval and is expected to be finalized in the first half of 2025.

Robinhood reports 23.9 million funded customers and 13.7 million monthly active users, managing assets totaling $130 billion. According to statistics from Google Finance, as of June 1, Robinhood’s (HOOD) stocks were trading at $22.97, indicating a 0.35% increase for the day.

FAQs

Can AI help with stock trading?

No AI can completely automate stock trading for retail investors, but technologies like Magnifi, an AI chatbot, can help you trade more effectively. 

What does Robinhood do?

Robinhood is an investment platform. It offers commission-free trading of stocks, ETFs, cryptocurrency, and other options via a mobile app or website.

Who developed the Robinhood app?

The Robinhood platform was launched in April 2013 by Vladimir Tenev and Baiju Bhatt.

How is AI used in trade?

AI is used in trading to analyze millions of data points and executes trades at the best price using sentiment analysis, machine learning (ML), and sophisticated algorithmic predictions.

What is Robinhood best for?

Robinhood offers 100% commission-free stock, ETF, and cryptocurrency trades, which makes it appealing to investors who trade frequently.

Is Robinhood free to use?

With a Robinhood investing account, you can make commission-free investments without charges for opening or maintaining your account.

Is Robinhood a bank?

No. Robinhood Financial LLC and none of its affiliates are banks.

Takeaways

Robinhood’s AI tools will provide personalized and real-time investment insights, potentially revolutionizing user trading experiences. Robinhood’s commitment to leveraging advanced technology to enhance trading efficiency will empower users with more informed decision-making capabilities.

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