Robinhood is one of the most trending investing apps in the market that makes you claim to trade shares for free. Robinhood has won more than 3 million investors due to its intuitive platform and free stock trades.
If you are searching for a new, exciting and addicting way to trade the stock, then look no further than Robinhood. How Robinhood make money is a question and doubtless, it comes to the minds of lots of millennial investors.
To make it clear let’s take a look at this given article and understand the business model of Robinhood and how does this make money.
How Robinhood Works
Before you jump into Robinhood and start buying, you should have the basic information that how it works. Robinhood has made it very easy to buy shares.
So, first download the app and get your account up and running. Once you do this, you will need to connect to your bank account. Here, you will fund your brokerage account. For those who are looking to earn money for trading shares, keep whatever you are comfortable with.
How Does Robinhood Make Money?
Robinhood earns its money through Gold Interest Subscription fees and the cash balance of user accounts. For example, I have about $8 in cash in my account, which Robinhood pools with other cash balances and earn interest. If I had that cash in a savings account, I could earn interest. But because it is sitting with Robinhood, Robinhood keeps the interest.
Revenue from Gold Subscriptions
Robinhood offers users a premium ‘Gold Membership Scheme’ with the following benefits:
- More buying power with margin trading.
- Extended business hours. With gold, you can do business 30 minutes before the market opens and 2 hours after the market closes.
- You can also leave a three-day waiting period for deposits and do business immediately.
Robinhood Affiliate Program
Finally, you can earn extra money from Robinhood by using the Robinhood Affiliate Program! By sharing your links with friends, you can get free stock for everyone- possibly $ 200 per share! Robinhood affiliate program limits the value of these free shares to $ 500 per account.