Robinhood, a free stock speculation app, rose again on August 19, Eastern time. This week, the start-up announced that it would get another $200 million financing from New York’s D1 partners, with a total valuation of nearly $11.2 billion, exceeding the market capitalization of traditional gaming companies MGM of 10.3 billion and Wynn of 8.76 billion. < / P > < p > this $200 million round of G financing is its third major investment in just five months. As one of the hottest fintech startups in Silicon Valley, it has been raising large sums of money at high valuations from several well-known investors, including Sequoia Capital, ribbon capital and Index Ventures. The company has raised about $1.71 billion so far, according to pitchbook and Reuters, and the company raised $800 million this year alone. < / P > < p > the reason why Robin Hood has such a high valuation has something to do with the pursuit of Tesla, apple and other stocks by individual investors after the outbreak of the epidemic. The company’s customer accounts with listed peers such as TD Ameritrade, Charles Schwab and e-trade achieved record growth in 2020. Robin Hood said the average daily revenue trading volume in the second quarter more than doubled from the previous quarter, with an average daily revenue of 4.3 million transactions in June, more than all existing brokers with open trading. The company also added 3 million new customer accounts in early 2020. < / P > < p > Robin Hood has performed well in 2020. Although there are some small problems in the process, the latest round of investment shows investors’ continued confidence in the success of the platform. Robin Hood’s revenue has also grown dramatically with the surge in trading volume. According to a recent filing with SEC regulators, the company’s profits from customer transactions roughly doubled from the previous quarter. Most of this comes from options trading. < / P > < p > as the deal boomed, Robin Hood said they saw “people taking the time to learn more about the market” and that since January, the company’s average daily access to educational resources for investing in basic knowledge has exceeded 250%. < / P > < p > as a start-up company, over overvalued value is also accompanied by the trouble of rapid fame. In March, Robin Hood went down for several days, causing some customers to be unable to trade on historic trading days. It attributed it in part to record trading volume and volatility. Many traders reported that they suffered heavy losses and demanded compensation because they were unable to access their accounts. Despite $280 million in a round f financing led by venture capital Sequoia, the trading app went down again without warning on June 18. < / P > < p > in addition, some features of the app make stock trading feel like a game. The start-up also made it harder to get an option after a young client committed suicide. In recent months, Robin Hood has emphasized a series of investment education for clients, including answering a series of questions before opening an account. The company said it plans to use the new money to expand its customer service team and recruit hundreds of employees. < / P > < p > Robin Hood has always been a subversive force in the investment community and does not charge users any transaction fees. Instead, it makes money by selling deals to bigger Wall Street firms. Last year, Charles Schwab, TD Ameritrade and E * Trade eliminated transaction fees to compete with them. < / P > < p > for investors, people always have great doubts about how free trading software can make money. As a software without charge, the market value can surpass the traditional casinos today. According to Robin Hood’s official website, the company’s profit sources mainly come from five aspects: 1) Robinhood gold investment tool, starting from US $5 per month; 2) kickbacks from market makers and trading venues; 3) income from cash generation; 4) stock loan income from counterparties; 5) exchange fee for purchasing with cash management debit card and fees from banks. < / P > < p > Robinhood charges an initial fee of $5 per month for its premium services, Robin gold. This premium service allows customers to get a margin of up to $1000. This means that users can invest more than $1000 in their accounts. Robin hood also charges interest when margin customers borrow more than $1000 to buy or short stock. < p > < p > Robin Hood also makes money by lending shares purchased with margin to counterparties, and the investment company sends orders from users to market makers for execution. Market makers offer kickbacks to Robin Hood to compete with the exchange. Nearly half of the company’s revenue comes from market makers such as two sigma securities and citadel securities, according to a report by Bloomberg. Michael Underhill, chief investment officer at capital innovations, a fund management firm that invests in IPOs, said Robin Hood is expected to push ahead with the IPO soon. “Seeing this jump in valuations shows that they have speed and momentum,” he said < / P > < p > it is understood that Robin Hood has “indefinitely” delayed its listing in the UK and has not announced its expansion in other global markets. A spokesman for the company said it would focus on strengthening its core business in the US.