Free stock trading, zero overhead and the market at your fingertips? Now there is an app for all that. It's called Robinhood and according to its creators, it's going to tap the very small investor segment.
"We are not setting any account minimums, which we think unlocks a market of investors who couldn't do this before," the company's co-founder Baiju Bhatt told CNBC's "Closing Bell" on Thursday. "We see Robinhood as unlocking the microinvestor market."
The free stock trading service is available in the Apple app store and no investment minimum is required. Among the app's investors are Andreessen Horowitz, Google Ventures, Index Ventures, Jared Leto and Snoop Dogg.
The app targets first-time investors and millennials. Co-founder Vlad Tenev gave this example: If a novice investor wants to make a $100 trade, he or she can't afford the $7 to $10 fee that a traditional brokerage firm would charge.