New Investment App Targets Millennials

Tech-obsessed millennials have become the focus in an unlikely industry— investment banking. College kids investing in the stock market may paint an unfamiliar picture, but brokerage startup

says they have seen a huge demand from the under 30's crowd for their easy to use investment app.

One of the main draws that Robinhood has over its competitors is a lack of transaction fees. While most sites charge between $7 and $10 per transaction, stocks that are bought and sold using the Robinhood app have no fees whatsoever. What's more, the app doesn't require its users to have a minimum balance, making it a good choice for cash-strapped college kids. Creators Vlad Tenet and Baiju Bhatt say that by waving the fees and minimum balance, they are able to foster an interest in investing among the younger generation.

Robinhood's sleek design and ease of use has roped in thousands of young people, with the company's average user age at just 26 years old. Some concern has been raised about the danger of young people playing the market with little or no financial knowledge, but the company says it doesn't expect inexperienced users to spend more than a few hundred dollars.

At the moment, Robinhood isn't earning much as it gains popularity. The app itself is free and without the luxury of transaction charges the company has been struggling to generate cash. However, the app currently makes money by taking interest from users' uninvested funds and in the future, the company plans to open a line of credit that users can trade on as well as a complimentary app that investment advice sites can link on to.