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.
"For someone just starting out that's the type of trade they want to make to get their feet wet and learn about how the stock market works," Tenev told CNBC.
The founders said that the waiting list for the app had nearly a million people on it. Robinhood has been live for about two months now.
Although Robinhood isn't generating any profit for Bhatt and Tenev at this point, they anticipate that will change in the near future.
"We expect that in a year or two our customers will be more mature, they'll have a few more years in the working place and we'll grow with them," said Bhatt.
That means eventually growing into a traditional brokerage model, he added.