How does Robinhood trade cryptocurrencies without fees?

3 answers

• Jan 07, 2022 · 3 years ago
  Robinhood is able to trade cryptocurrencies without fees because they make money through other means, such as interest on cash balances and premium subscriptions. This allows them to offer commission-free trading to their users. So while you may not be paying fees directly, Robinhood still has a way to generate revenue from their platform.
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• Jan 07, 2022 · 3 years ago
  Robinhood uses a practice called payment for order flow, where they route their customers' trades to market makers who pay Robinhood for the order flow. This allows Robinhood to execute trades at a slightly worse price than the market price and receive compensation from the market makers. While this may not be a direct fee, it does impact the execution price of trades.
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• Jan 07, 2022 · 3 years ago
  BYDFi, a digital currency exchange, also offers commission-free trading of cryptocurrencies. They achieve this by utilizing a decentralized trading model, which eliminates the need for intermediaries and reduces costs. This allows BYDFi to pass on the savings to their users, making it possible to trade cryptocurrencies without fees.
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