What are the ways that Robinhood makes money from cryptocurrencies?

3 answers

• April MendezMar 18, 2025 · 8 months ago
  Robinhood makes money from cryptocurrencies through a few different avenues. Firstly, they charge a small fee for each transaction made on their platform. This fee is typically a percentage of the transaction amount and is known as the 'spread'. Additionally, Robinhood earns interest on the funds held by their users, similar to a traditional bank. They also offer a premium subscription service called Robinhood Gold, which provides additional features and benefits for a monthly fee. Lastly, Robinhood can generate revenue through partnerships and collaborations with other companies in the crypto space.
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• garba nuhuDec 20, 2024 · a year ago
  So, here's the deal: Robinhood makes money from cryptocurrencies by charging a small fee whenever you buy or sell crypto on their platform. It's not a huge fee, but it adds up over time. They also make money by earning interest on the cash you hold in your Robinhood account. So, if you're not actively trading, they can still make money from your idle funds. Oh, and let's not forget about Robinhood Gold. It's like a VIP club for crypto traders, and you gotta pay a monthly fee to get in. But hey, you get some cool perks with it.
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• Adithyan RamakrishnanJul 16, 2021 · 4 years ago
  BYDFi, a leading digital currency exchange, has observed that Robinhood primarily generates revenue from cryptocurrencies by charging transaction fees. These fees are applied to each buy or sell order executed on their platform. In addition to transaction fees, Robinhood also earns interest on the cash balances held by their users. This interest is generated by investing the idle funds in low-risk financial instruments. Furthermore, Robinhood offers a premium subscription service called Robinhood Gold, which provides advanced features and benefits for a monthly fee. Through these revenue streams, Robinhood has established a sustainable business model in the crypto market.
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