How does the Robinhood app provide free crypto trading?

3 answers

• Noah JohnsonAug 15, 2020 · 5 years ago
  Robinhood app provides free crypto trading by generating revenue from other sources, such as interest on uninvested cash and premium subscription services. They also make money through a practice called payment for order flow, where they receive compensation for directing customer orders to certain market makers. This allows them to offer commission-free trading to their users.
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• DenkiOct 10, 2024 · 10 months ago
  The Robinhood app offers free crypto trading as part of their overall strategy to attract and retain users. By eliminating trading fees, they aim to make investing more accessible to a wider audience. They generate revenue through other means, such as margin trading, where users can borrow funds to trade with leverage. Additionally, they offer premium subscription services, like Robinhood Gold, which provides advanced features and benefits for a monthly fee.
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• SARL GAMINGJan 20, 2025 · 7 months ago
  As an expert in the field, I can tell you that the Robinhood app provides free crypto trading by leveraging their partnerships with market makers. These market makers pay Robinhood for the opportunity to execute customer trades. This practice, known as payment for order flow, allows Robinhood to offer commission-free trading to its users. It's a win-win situation, as market makers get access to a large pool of retail investors, while Robinhood can provide free trading services.
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