Tradier, a cloud-based financial services company, has acquired a lesser-known commission-free trading app, called Rho. Financial terms of the acquisition were not disclosed.
As part of the deal, Tradier has integrated Rho's technology and customers into its existing portfolio. The merger arguably puts the firm in the 'neo-broker' territory where it competes against the likes of Robinhood.
Houston-based Rho originally popped up as a commission-free investing app back in 2018. The startup was previously known as Jellifin and rebranded in 2019 as Rho.
Tradier claims that Rho mobile platform has gained a sizable market presence over the years due to its ability to serve first-time traders. The app offers no-fee investing in stocks, ETFs, and differentiates itself by offering real-time data for options trading.
Integrating into Tradier's products, allows Rho's operatives to focus on removing the complexity in some business areas and simplifies the trading experience.
Tradier has served Rho as a brokerage partner for years. By bringing its zero-fee brokering in-house, Tradier will have control over the full value chain, including a full license, back-end technology and operation.
Tradier Focuses on Stock and Options Trading
"We welcome Rho to the Tradier family. While API-based investing integrations are at a record high, there is a mounting demand for pre-built embeddable, commission-free mobile platforms for quick launch from clients. The pandemic has accelerated retail trade volumes and the adoption of mobile by active traders. New and existing companies are all looking to offer commission-free mobile platforms or embed investing into their services," said Dan Raju, CEO of Tradier.
"We are excited to continue on our mission to democratize commission-free mobile experiences as a part of the Tradier team. Together with Tradier, we look forward to continuing to change the way brokerage services are delivered and consumed by Traders," added Andre Norman, Founder and CEO of Rho.
Tradier may be less well known in the Forex trader community as it currently only provides stock and options trading. Moreover, it depends on its brokerage API product that can be integrated by third parties, with client onboarding and Execution provided by Tradier, while offering limited technology to its direct clients.
The company offers an AI algorithm solution for a $99 subscription fee with no commission or other fees. From Tradier’s perspective, its offering generates value for its users as it provides a trading edge in the markets by sending insights about macro events as they happen.
