Robinhood Rolls Out Fee-Free Cryptocurrency Trading App

 Robinhood launches cryptocurrency trading app with no commissions across four U.S. states.

Fee-Free Cryptocurrency Trades

Robinhood, the zero-fee stock trading app, has added a no-commission cryptocurrency trading app to its offerings.  First announced in January, Robinhood expanded its current trading platforms to include fee-free cryptocurrency trading. The app also features real-time market data for 16 different crypto coins, including Bitcoin (BTC) and Ethereum (ETH).

Within 5 days of the announcement, Robinhood Crypto had one million registered users on the waitlist. That figure has now reached 4 million and more than $100 billion in transaction volume on their brokerage platfrom, proving that zero-fee trading is a sure-fire way to attract rookie and veteran traders alike.

Robinhood emailed The Scope Weekly additional background information and claimed that Robinhood is the fastest-growing brokerage ever, with over four million users. Investors in Robinhood have transacted over $100 billion, and saved over $1 billion in commission fees to date.”

By February 22, the first invitations were issued for users to begin trading cryptocurrencies . Now the crypto trading app is available to investors across California, Massachusetts, Missouri, and Montana. Other registered users will continue to wait until the app is gradually rolled out in other states.

As reported by The Scope Weekly, in February, Jay-Z’s Roc Nation branch invested millions in the rising free stock brokerage platform.  Chirico said, “Robinhood is most recently valued at $1.3 billion, with $176 million in funding from DST Global, Thrive Capital, NEA, and Index Ventures.”

Headquartered in Palo Alto, CA, Robinhood was co-founded by Vladimir Tenev and Baiju Bhatt in 2015. Since its inception, the company has become known as the fastest-growing brokerage ever, currently valued at around $1.3 billion US.

Fractional Trading

One key feature that made Robinhood’s initial stock trading app stand out from the crowd was the ability for people to begin trading with no minimum investment required to get started. Traditionally, many investors were precluded from the markets by other brokerage companies that demanded a more substantial initial investment to get started.

As there is no minimum investment amount needed to start trading cryptocurrencies, it’s easier for smaller investors to get into the market sooner.

Ivacy VPN

Perhaps one of the more attractive features about Robinhood Crypto is that users are able to trade in fractional amounts. Users can buy or sell fractional cryptocurrencies as small as 0.00001 BTC or 0.001 ETH. The result is that they’re able to begin investing in crypto with much smaller amounts of money.

How Does Robinhood Make Money?

Just as with the company’s stock and options trading app, Robinhood Crypto allows users to buy and sell certain cryptocurrencies commission-free. By comparison, other crypto exchanges such as Coinbase, charge trading fees that can range between 1.5 and 4 percent.

Instead of charging fees for trading, Robinhood generates its revenue from interest earned on cash deposited in users’ accounts. Having access to a free crypto trading app not only represents a huge cost saving to users, but dramatically undercuts Coinbase’s fees.

While Robinhood is known for offering fee-free trading, users who wish to trade on margin and leverage their stock trades may be charged a monthly fee. The company’s Gold subscription fees range between $6 and $200 per month and allow users to borrow amounts between $1,000 and $50,000. Keep in mind that cryptocurrencies are non-marginable. Users can’t borrow against crypto assets with Robinhood at this time.

The company has also raised a staggering $526 million in various funding rounds.

Trading Cautions

Users interested in buying or selling cryptocurrencies using Robinhood’s free trading app should be aware that Robinhood Crypto is a separate entity to Robinhood Financial LLC, which is fully regulated by the required industry bodies.   Robinhood Crypto is not a member of the Financial Industry Regulatory Authority (FINRA), nor is it a member of the Securities Investor Protection Corporation (SIPC), which essentially means users’ cryptocurrency investments are not protected.

 

Disclaimer: Cryptocurrencies are a highly speculative risk and this article is not a recommendation or endorsement by The Scope Weekly or the writer to buy, sell or trade in any digital currency. As every person’s financial situation and risk appetite is unique, advice should be sought from a qualified professional before making any financial decisions. The writer has no position in any cryptocurrency as of the date of this writing.


Remember to subscribe to our newsletter. Follow The Scope Weekly on Twitter and Facebook and Instagram.If you would like to become a contributor to The Scope Weekly, read our submission guidelines, and apply. For product reviews, click here.

Related News

Tags from the story
More from Lee Masterson
2 replies on “Robinhood Rolls Out Fee-Free Cryptocurrency Trading App”