What are the costs of trading cryptocurrencies on Robinhood?

3 answers

• Umar HayatJan 06, 2023 · 3 years ago
  Trading cryptocurrencies on Robinhood comes with certain costs. Firstly, there are no commission fees for buying or selling cryptocurrencies on the platform. However, Robinhood makes money through a practice called payment for order flow. This means that when you place a trade, Robinhood may route your order to a market maker who pays Robinhood for the order. This can result in a small difference between the price you see on Robinhood and the actual execution price. Additionally, Robinhood charges a small fee for cryptocurrency transfers to external wallets. Overall, while trading on Robinhood may seem cost-free, there are still some indirect costs to be aware of.
  672

  336
• sufi pavaJun 14, 2020 · 6 years ago
  When it comes to trading cryptocurrencies on Robinhood, the costs are relatively low. Unlike traditional brokerages, Robinhood does not charge any commission fees for buying or selling cryptocurrencies. This can be a significant advantage for traders who make frequent trades or invest small amounts. However, it's important to note that Robinhood makes money through other means, such as payment for order flow. This means that the execution price of your trades may not always be the same as the price you see on the platform. Additionally, there may be fees for transferring cryptocurrencies to external wallets. It's important to consider these costs when trading on Robinhood.
  681

  227
• Huffman BowdenMar 18, 2023 · 3 years ago
  Trading cryptocurrencies on Robinhood is commission-free, which means you won't have to pay any fees for buying or selling. However, it's important to note that Robinhood makes money through payment for order flow. This means that when you place a trade, Robinhood may route your order to a market maker who pays Robinhood for the order. While this practice allows Robinhood to offer commission-free trading, it can result in a small difference between the price you see on the platform and the actual execution price. Additionally, there may be fees for transferring cryptocurrencies to external wallets. It's important to consider these costs and factors when trading on Robinhood.
  683

  171