Robinhood's customer margin borrowing climbed to $21.6 billion in the second quarter, a 127% increase from a year earlier and a more than threefold jump from the $5 billion recorded in the same period in 2024. The figures highlight how accessible leverage has become for everyday investors, who can open a margin account with a $2,000 portfolio balance.
Citizens financial technology analyst Devin Ryan argues that Robinhood has deliberately courted the most active borrowers, offering transfer bonuses, low margin rates, and high yields on idle cash. A Robinhood spokesperson pushes back, saying the company's products serve a wide range of customers and that it does not encourage risky trading. Ryan also credits frictionless mobile trading for the surge.
The trend is not unique to Robinhood. Total margin debt across the industry reached an all-time high near $1.5 trillion in June, according to FINRA, a figure that includes hedge funds and other institutions as well as retail investors. Meanwhile, Robinhood's retirement assets have nearly quadrupled in two years, suggesting its growth is not solely dependent on leveraged speculation.