Question

How does the average account balance of Robinhood users compare to that of Charles Schwab users?

The average account balance of Robinhood users is significantly lower than that of Charles Schwab users. The average Robinhood user has around $5,000 per account, while the average Charles Schwab user has around $100,000 per account. The median amount in a Robinhood account is even lower, at $240.

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Now for some weaknesses. The average Robinhood user has around $5,000 per account vs the average Charles Schwab user, which has around $100,000 per account. The Median amount in a Robinhood account is even lower at $240. This limits Robinhood's resources to grow. By contrast, Charles Schwab makes 50% of its revenue purely off interest from its users' accounts, which reached as high as $6.1 billion in 2020. Another way Charles Schwab makes money off account management fees, while Robinhood makes 80% of revenue from payment for order flow. This payment structure is also an external threat against Robinhood, as the SEC recently fined the company $65M for misleading users with the process.

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