Robinhood Markets Hits Record Trading Day, Sees Growth in Prediction Markets and AI Trading

Key Points

• Robinhood recorded its highest-ever equity trading day, surpassing prior peaks from 2020 and 2021. Customers have often bought after market declines, though the company’s brokerage chief said he could not predict how they would respond to a prolonged downturn.
• The company is investing in prediction markets and agentic trading: non-sports prediction activity has doubled, and more than 200,000 customers use agentic capabilities, though it is too early to know whether their higher engagement will persist.
• Robinhood is also targeting growth through wealth management and international expansion. It has more than 28 million customers, average account balances of about $15,000, and said October was its third-best month for deposits.

Robinhood Markets NASDAQ: HOOD recorded its highest-ever equity trading day on the Thursday preceding a Wolfe Research event, Chief Brokerage Officer Steve Quirk said, as he outlined growth opportunities in prediction markets, agentic trading and wealth management.

Quirk said trading on the record day significantly exceeded the company’s previous high, including levels reached during 2020 and 2021. He described Robinhood customers’ behavior during volatile markets as “cautiously aggressive,” saying they have often bought stocks after declines.

With the average customer in their 30s, Quirk said many have a longer investment horizon than customers at some established brokerages. He cautioned, however, that he could not predict how Robinhood users would respond to a prolonged market downturn.

Prediction markets and agentic trading

Quirk identified prediction markets, agentic trading and wealth management as newer areas receiving particular attention and resources. Sports have dominated prediction-market activity, he said, but he expects non-sports contracts to be a significant source of growth.

He pointed to contracts tied to economic indicators and company key performance indicators as potential areas of interest. Quirk also said the company’s non-sports activity had doubled, without specifying a time frame or baseline.

Asked about regulatory uncertainty, Quirk said sports contracts are the principal area of contention and that he could not predict where the issue would ultimately land. He said Robinhood prepares for a scenario in which sports contracts are unavailable and pointed to other offerings, including KPI options being launched with Cboe.

On agentic trading, Quirk said more than 200,000 customers were using the capabilities, though they remain a small portion of Robinhood’s customer base. A fraction of those users allow an agent to trade on their behalf, he said, while others use the tools for tasks such as portfolio and tax optimization or developing investment theses.

Early users were more engaged and doing more on the platform, Quirk said, but he cautioned that the most engaged customers typically adopt new products first. He said the company would need more time to assess whether any increase in activity is sustained.

Wealth management and customer assets

Quirk said Robinhood sees room to expand in wealth management through TradePMR, its managed portfolio offering Robinhood Strategies and the recently started Robinhood Advisor Network, which connects customers with advisers.

He said registered investment advisers have shown interest in reaching Robinhood’s younger customers and using its technology. Advisers risk losing relationships when wealth is passed to heirs they do not know, he said.

Robinhood has more than 28 million customers, according to Quirk. He said account size has risen to roughly $15,000 from about $3,000, though it remains well below levels at established brokerages. He also said Robinhood is receiving more account transfers than it is losing, on a net basis, from every other broker.

Quirk estimated that Robinhood’s existing product range covers 80% to 85% of the assets held in customers’ or other investors’ accounts, while acknowledging that the company still has gaps in asset classes and account types.

Deposits and international expansion

Discussing Robinhood’s target of more than 20% net deposit growth, Quirk said adviser services, international expansion and the core brokerage business could support continued growth. He said October was the company’s third-best month for deposits and that the company was not far from 20% growth for the year at the time of the discussion.

Internationally, Quirk said Robinhood operates in markets including Singapore, Dubai, the U.K. and countries across Europe. While the company already offers much of what international customers want, he said local execution and country-specific retirement products are important to attracting a greater share of their assets.

Quirk also said the removal of the pattern day trader rule had increased activity among Robinhood customers. The company has been contacting customers who previously transferred accounts elsewhere because of the rule, he said.

On crypto perpetuals, Quirk described the instruments as attracting substantial attention and said they could provide hedging utility. He noted that they are leveraged products and said he would not expect U.S. perpetuals to offer the same level of leverage available overseas.

About Robinhood Markets (NASDAQ:HOOD)

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.

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