How Does Robinhood Make Money? Investing In 6 Ways

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Robinhood offers financial services and a vast array of investing goods and services

But how does Robinhood  make money?  Let's find out!

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1. Payments For  Order Flow

Robinhood routes its users’ orders through a market maker who makes the trades and compensates Robinhood for the business at a rate of a fraction of a cent per share.

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2. Premium Robinhood Gold

This generates a separate revenue from subscription fees paid by Robinhood’s premium user base. The monthly cost for this service is $5 per user.

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3. Margin Trading

Margin Trading is Robinhood’s second-biggest revenue generator. In 2021, margin lending accounted for 12% of Robinhood’s net revenue.

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4. Cash Management Fees

Cash deposited into the various banks that make up Robinhood’s Cash Management network renders the company fees.

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Robinhood Securities may generate revenue by depositing customer cash into interest-bearing bank accounts.

5. Income From Cash

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