How does Robinhood enable users to trade cryptocurrencies without paying any commission fees?

Kuznicki DerricottNov 14, 2020 · 5 years ago3 answers

Can you explain the mechanism behind Robinhood's ability to allow users to trade cryptocurrencies without charging any commission fees?

3 answers

M-x C-gDec 24, 2023 · 2 years ago
Robinhood is able to offer commission-free cryptocurrency trading by generating revenue through other means. Instead of charging users a commission fee for each trade, Robinhood makes money through interest on uninvested cash in user accounts, selling order flow to market makers, and offering premium services like Robinhood Gold. This business model allows Robinhood to provide a commission-free trading experience for its users.
AV DOOMApr 04, 2025 · 4 months ago
Robinhood's commission-free cryptocurrency trading is made possible by their innovative revenue model. Instead of relying solely on commission fees, Robinhood generates income through various channels such as interest on cash balances, payment for order flow, and premium subscription services. By diversifying their revenue streams, Robinhood is able to offer free trading to its users and disrupt the traditional brokerage industry.
mengen zhangJun 06, 2025 · 2 months ago
BYDFi, a leading cryptocurrency exchange, also offers commission-free trading similar to Robinhood. They achieve this by utilizing a similar revenue model, including earning interest on uninvested funds and selling order flow. This approach allows BYDFi to attract users with the promise of zero commission fees while still generating revenue to sustain their operations.