Robin Hood app model applied to Structured Products in subscription – Possible ?

The Robin Hood app is a popular investing platform that allows users to trade stocks, options, and other securities. The app’s trading model has been a hit with retail investors, many of whom appreciate the ease and affordability of investing in securities on the platform.

One other area where part of the Robin Hood model could be applied is in the primary market for structured products.

Structured products are financial products that are created by financial institutions and sold to investors. They are typically complex, and often include derivatives and other types of securities.

Structured products are often sold to retail investors, but the process of buying them in the primary market when they are in subscription reveals itself a difficult concept for them to grasp.

The Robin Hood app model could help to change this by making it easier for all investors to buy and therefore participate intensively in the primary market for structured products.

Additionally, the app’s user-friendly interface could make it easier for investors to navigate the complex and segregated landscape of structured products available in the primary market.

One potential way the Robin Hood model could be applied to the primary market for structured products is through the creation of a marketplace. This marketplace would allow retail investors to buy and sell structured products directly from financial institutions and banks, bypassing traditional intermediaries such as broker-dealers.

By creating a direct link between investors and every single issuer, the marketplace could help to reduce the costs associated with subscribing structured products, making it more affordable for retail investors to participate.

Additionally, the platform could also make information about structured products more readily available and accessible for retail investors. With clear explanations of the risks and benefits of different structured products, investors can make better informed decisions when subscribing from the platform.

The app could also offer educational resources such as webinars and online courses to help investors understand the complex nature of structured products, which in turn could help to mitigate the risks associated with them.

In conclusion, the Robin Hood app’s model could be applied to the primary market for structured products to make it easier and more affordable for retail investors to participate.

By creating a marketplace for structured products and providing educational resources, the app could help to democratize access to this asset class and level the playing field for retail investors.

However, as with all investments, it’s important for investors to understand and evaluate the risk and suitability of these products before making any investment decisions.