What impact do spread fees have on the profitability of cryptocurrency trading on Robinhood?

3 answers

• SaschaJan 24, 2025 · 5 months ago
  Spread fees can have a significant impact on the profitability of cryptocurrency trading on Robinhood. When you buy or sell a cryptocurrency on Robinhood, you are subject to a spread fee, which is the difference between the buy and sell prices. This fee is essentially a hidden cost that reduces your potential profits. If the spread is large, it means you need the price to move significantly in your favor just to break even. Therefore, high spread fees can eat into your profits and make it more challenging to achieve a positive return on your trades.
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• Lazarescu Ecaterina-SoniaJul 24, 2024 · a year ago
  Spread fees play a crucial role in determining the profitability of cryptocurrency trading on Robinhood. These fees are essentially the cost of executing a trade on the platform. When the spread is wide, it means there is a significant difference between the buying and selling prices of a cryptocurrency. This difference represents the fee that traders have to pay. Therefore, the wider the spread, the higher the cost of trading, and the lower the potential profitability. It's important for traders to consider the impact of spread fees when making trading decisions on Robinhood.
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• Slayyy errOct 17, 2023 · 2 years ago
  Spread fees are an important factor to consider when trading cryptocurrencies on Robinhood. While Robinhood itself does not charge any trading fees, it makes money through spread fees. This means that the buy and sell prices of cryptocurrencies on Robinhood are slightly higher and lower, respectively, than the market prices. The difference between these prices is the spread fee. While the impact of spread fees on profitability may vary depending on market conditions and the specific cryptocurrency being traded, it's generally advisable to be mindful of these fees and factor them into your trading strategy.
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