Robinhood Trading App Has Connection Problems, Website Says

The Robinhood trading app is reportedly experiencing connection and log-in problems.
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Robinhood, the stock-trading app popular with millennials, was experiencing connection problems on Monday morning.

DownDetector, which offers real-time status and uptime monitoring for hundreds of services, said the problems began at 9:41 a.m. EDT.

Eighty-five percent of the reported problems involved the server connection, according to DownDetector's website, while 14% were related to logging in.

Robinhood did not immediately respond to a request for comment.

"Think or swim," one commenter said on Twitter. (That's the name of TD Ameritrade's  (AMTD) - Get Report trading platform.)

"Nothing is free," another tweeted.

"Working fine for me," said a third.

According to an SEC filing, Robinhood posted revenue of $180 million for the second quarter. In the first quarter, it reported $91 million. 

The majority of Robinhood’s revenue comes from options trading, which experts say can be risky, especially for amateur investors. 

Robinhood reported 4.31 million daily active trades for June, well ahead of rivals like E-Trade, which reported about a quarter as many for the month. 

The company attributes its rise in popularity amid the coronavirus pandemic to a volatile market that attracts traders, and to the work-from-home environment, which has individuals at home with more time on their hands. The average Robinhood user is 33 years old.

Last week, the startup said it had raised another $200 million of funding, pushing its valuation to $11.2 billion.

The company has sparked controversy. In June, Alexander E. Kearns, a 20-year-old student at the University of Nebraska, killed himself after misreading his account and thinking, incorrectly, that he'd run up massive losses in a Robinhood trading account. 

In response to Kearns' death, Robinhood made a series of changes to its options offering and user interface directly. The company also said it would do more to explain how sophisticated trading strategies work.