Very interesting article on Robinhood’s move to introduce zero-fee trading of cryptocurrencies this February. The company has already been disrupting other giants like Scottrade and Etrade by offering zero-fee trading of conventional stocks. They make money off of interest accumulated on cash balances in the accounts of over 3 million users. This new extension into the cryptocurrency market will follow the same model and seek to gain marketshare from exchanges like Coinbase, Kraken, Coinmama and many others. Initially, they will only roll out the service in 5 states with more to follow. They will also limit cryptocurrency trading to Bitcoin and Ethereum. Excited to see where this company goes as it continues to disrupted financial markets across the world.
Micheal, great article thanks for posting! I am an avid user of Robinhood as they are making it easier for millennials to invest as they no longer have to worry about fees associated with trades, making it easier to track investments and incur less losses. With the addition of cryptocurrencies to its platform, millennials will be able to trade the popular currencies without paying large fees to do so as with other large exchanges.