How does Robinhood charge fees for cryptocurrency transactions?

3 answers

• Nicolas BermudezMar 28, 2024 · a year ago
  Sure! When it comes to cryptocurrency transactions on Robinhood, there are a few things to consider. First, Robinhood does not charge any commission fees for buying or selling cryptocurrencies. However, they do make money through a process called 'payment for order flow.' This means that when you place a cryptocurrency order, Robinhood routes the order to market makers who pay Robinhood for the order flow. These market makers may execute the order at a slightly different price than the current market price, allowing them to profit from the spread. As a result, you may experience a small difference between the quoted price and the executed price of your cryptocurrency transaction on Robinhood. It's important to note that this process is how Robinhood makes money, rather than charging direct fees to users.
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• Md Shahin BeparyOct 16, 2024 · 8 months ago
  Robinhood charges no fees for cryptocurrency transactions! Unlike traditional brokerages that charge commissions, Robinhood offers commission-free trading for cryptocurrencies. This means you can buy and sell cryptocurrencies on Robinhood without incurring any fees. However, it's worth mentioning that the quoted price you see on Robinhood may not be the exact price at which your order is executed. This is because Robinhood uses market makers to execute orders, and they may execute the order at a slightly different price to make a profit. So while you won't be charged any fees, there may be a small difference between the quoted price and the executed price of your cryptocurrency transaction on Robinhood.
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• mohammadrezaMay 16, 2024 · a year ago
  When it comes to cryptocurrency transactions on Robinhood, the platform charges no fees. That's right, you can buy and sell cryptocurrencies on Robinhood without paying any commissions. However, it's important to understand that the quoted price you see on Robinhood may not be the exact price at which your order is executed. Robinhood uses a process called 'payment for order flow' to make money. This means that when you place a cryptocurrency order, Robinhood routes the order to market makers who pay for the order flow. These market makers may execute the order at a slightly different price, allowing them to profit from the spread. So while you won't be charged any fees, there may be a small difference between the quoted price and the executed price of your cryptocurrency transaction on Robinhood.
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