How Does Robinhood Make Money - 6 Different Ways

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Robinhood generates most of its revenue from accumulating minimal profits from individual trades.

How Does Robinhood Make Money

Users who wish to move funds from the Robinhood platform into the services of another broker pay a transfer fee of $75.

1. Service Charges

A higher interest rate is earned on the user’s  cash deposit.

2. Income From Cash

3. Management Fees

Issuers of debit and credit cards frequently charge sorts of fees to cover costs like transaction processing and fraud loss.

4. Premium Robinhood Gold

About 7% of the company’s income comes from this premium subscription service.

5. Margin Trading

Users borrow money from Robinhood Securities to invest on margin. Robinhood Gold includes basic margin trading.

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