How does Robinhood make money from offering free cryptocurrency trading?

3 answers

• Sunil kumar SinghSep 01, 2021 · 4 years ago
  Robinhood is able to offer free cryptocurrency trading by making money through other means. One way they do this is by earning interest on the cash and securities held in user accounts. They also generate revenue through their premium subscription service, Robinhood Gold, which offers additional features and benefits for a monthly fee. Additionally, Robinhood earns money through payment for order flow, where they receive compensation for directing orders to certain market makers. This practice is common among brokerage firms. So, while they may not charge fees for cryptocurrency trading, Robinhood still has multiple revenue streams to sustain their business model.
  672

  336
• jingjingApr 21, 2021 · 4 years ago
  Robinhood makes money from offering free cryptocurrency trading by leveraging their large user base. With millions of users on their platform, Robinhood is able to attract advertisers who are willing to pay for targeted advertising. They also have partnerships with other companies in the cryptocurrency space, such as exchanges and wallet providers, and earn referral fees for directing users to these platforms. Additionally, Robinhood offers a premium version of their app called Robinhood Gold, which provides advanced features and requires a monthly subscription fee. By diversifying their revenue sources, Robinhood is able to offer free cryptocurrency trading while still generating income.
  697

  233
• Samuel KlimkoMay 04, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that Robinhood's revenue model is quite unique. While they offer free cryptocurrency trading, they make money through a variety of channels. One of the main ways they generate revenue is through their premium subscription service, Robinhood Gold. This service provides users with additional features and benefits for a monthly fee. Additionally, Robinhood earns money through payment for order flow, where they receive compensation for directing orders to certain market makers. This allows them to offer free trading while still making money. It's important to note that Robinhood's revenue model is not exclusive to them and is common among many brokerage firms in the industry.
  740

  185