How does Robin Hood's business model generate revenue in the cryptocurrency market?

1 answers

• Nov 28, 2021 · 3 years ago
  Robin Hood's business model in the cryptocurrency market is quite interesting. They have a premium subscription service called Robin Hood Gold, which users can opt for to access additional features like margin trading and extended trading hours. This subscription service generates revenue for Robin Hood through monthly fees paid by the users. Additionally, Robin Hood earns interest on the uninvested cash balances held in user accounts, which adds to their revenue. They also receive payment for order flow from market makers who execute trades on their platform. Lastly, Robin Hood sells order information to high-frequency trading firms, which is another source of revenue for them. These revenue streams, combined with their commission-free trading model, allow Robin Hood to thrive in the cryptocurrency market.
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