How Does Robinhood Make Money?
Robinhood makes money mainly through payment for order flow, where they get paid by market makers for routing trades their way. It's a win-win—traders save cash, Robinhood gets a payday!
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Robinhood profits from lending your stock holdings to other traders, and they collect interest on uninvested cash in your account. It's all part of their sneaky genius plan!
I use Robinhood and can confirm they make money through options trading fees and rebates from trading venues. Really smart setup!
They earn through premium services like Robinhood Gold, which offers features like margin trading for a fee. Cha-ching!
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