Robinhood users ramped up deposits during Monday's market bloodbath
- Robinhood users ramped up deposits during Monday's market sell-off.
- The Dow Jones industrial average witnessed its largest point drop ever on Monday.
Users of popular stock trading app Robinhood saw a buying opportunity in Monday's market sell-off.
On Monday, the US stock market witnessed its largest point decline ever. The Dow Jones industrial average dropped as much as 1,600 points during Monday trade before closing down 1,175 points. Still, a spokesperson for Robinhood, the California-based brokerage, told Business Insider its users ramped up deposits on its zero-commission stock trading platform.
"We saw a large spike in transaction volume and trading activity on the platform today," the spokesperson said. "Retail investors deposited 20% more funds into their Robinhood accounts today than they did on Friday."
During a wide-ranging interview with Business Insider, Robinhood cofounder Baiju Bhatt said users of Robinhood, who skew younger, view a market downturn as a buying opportunity. Robinhood investors also "bought the dip" in 2016 when anxieties out of Asia caused the Dow to decline about 8% between December 31 and January 15.
"Those were the days we saw the biggest net deposits we had ever seen," Bhatt said."With this younger generation, when the market takes a slide, they see it as an opportunity to buy."