And the more that customers engaged in such behavior, the better it was for the company, the data shows. It has been one of the tech industry’s biggest growth stories in the recent market turmoil.īut at least part of Robinhood’s success appears to have been built on a Silicon Valley playbook of behavioral nudges and push notifications, which has drawn inexperienced investors into the riskiest trading, according to an analysis of industry data and legal filings, as well as interviews with nine current and former Robinhood employees and more than a dozen customers. The ease of trading has turned it into a cultural phenomenon and a Silicon Valley darling, with the start-up climbing to an $8.3 billion valuation. Millions of young Americans have begun investing in recent years through Robinhood, which was founded in 2013 with a sales pitch of no trading fees or account minimums. “When he is doing his trading, he won’t want to eat,” said his wife, Tashika Dobatse, with whom he has three children. His account value shot above $1 million this year - but almost all of that recently disappeared. Dobatse took out two $30,000 home equity loans so he could buy and sell more speculative stocks and options, hoping to pay off his debts.

After funding his account with $15,000 in credit card advances, he began spending more time on the app.Īs he repeatedly lost money, Mr.

Dobatse, now 32, said he had been charmed by Robinhood’s one-click trading, easy access to complex investment products, and features like falling confetti and emoji-filled phone notifications that made it feel like a game. But his behavior changed in 2017 when he signed up for Robinhood, a trading app that made buying and selling stocks simple and seemingly free. Richard Dobatse, a Navy medic in San Diego, dabbled infrequently in stock trading.

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