How does Robinhood, a free trading app, make money from cryptocurrency trading?

1 answers

• May 08, 2022 · 3 years ago
  Robinhood, being a free trading app, has multiple ways of generating revenue from cryptocurrency trading. One way is through earning interest on the cash and cryptocurrencies held in user accounts. This means that when users deposit funds into their Robinhood accounts, Robinhood can invest those funds and earn interest on them. Another source of revenue for Robinhood is their premium subscription service called Robinhood Gold, which provides users with access to additional features and margin trading. The subscription fees from Robinhood Gold contribute to their revenue. Additionally, Robinhood also earns money through payment for order flow, where they receive compensation for routing customer orders to certain market makers. This allows Robinhood to offer commission-free trading to its users while still making money.
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