Bram Berkowitz, The Motley Fool
Tue, Jun 24, 2025, 2:45 AM 5 min read
In This Article:
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Even if it isn’t the most exciting area of the market, there are always opportunities in the financials sector.
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These opportunities range from fintech to large money center banks.
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10 stocks we like better than Robinhood Markets ›
Many financials stocks often fly under the radar. They are not typically viewed in the same way as high-flying artificial intelligence companies that will disrupt all aspects of daily life as we know it. That said, it can be good to look in parts of the market that are less popular, because that means there are likely more opportunities going unnoticed.
Furthermore, many traditional financial stocks have started to really focus on technology, because it’s become a crucial part of what people are looking for in their banking experience. Here are some of the best financials stocks to buy with $2,000 right now.
The online broker Robinhood (NASDAQ: HOOD) is viewed as the pioneer of commission-free trading, opening stock trading up to the masses. While the company has encountered its fair share of challenges, Robinhood has transformed from an online brokerage to a platform that many now view as a full-service bank and prefer over traditional banks.
For just $5 per month or $50 per year, subscribers can get access to a strong yield on uninvested brokerage cash (currently 4%), the ability to make larger instant deposits, access to research and trading tools, and the ability to use margin, with the first $1,000 interest-free. Gold members can also get a 3% match on individual retirement account contributions, and the ability to use Robinhood’s investment advisory services. All these products are wrapped into a sleek tech platform that is, in my opinion, much easier to use and navigate than those of some of the big players.
Invest in Gold
I particularly like how you can earn competitive yield on cash balances without locking them up for several months like in a certificate of deposit. This provides the flexibility to buy stocks when opportunities arise. But don’t just take my word for it. In the first quarter, Robinhood increased Gold subscribers by 1.5 million year over year, reaching 3.2 million members total.
On the earnings call, management said that 1-in-3 members who joined Robinhood in Q1 become Gold members very quickly, which is a great conversion rate. Meanwhile, other revenue, which is largely composed of Gold subscriptions, grew 54% year over year to $54 million in Q1 and made up close to 6% of total revenue.
The stock is undoubtedly expensive at about 53 times forward earnings, but Robinhood is really resonating with its customers and is likely to continue capturing a significant number of new investors. I also think the company will be able to raise the Gold subscription charge in time, especially as it adds new financial products to the platform.
