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While that's a possible money source for sure, Robinhood currently makes their profit on their brokerage accounts mostly by earning interest on deposited cash.
by laken 8y ago
While that's a possible money source for sure, Robinhood currently makes their profit on their brokerage accounts mostly by earning interest on deposited cash.
Banks make boatloads of money without needing to sell data, but rather selling loans. Not even needing to loan money, offering 3% interest, with how high treasury notes are these days, is _really_ easy for banks to do. The problem is that generally banks also have really high overhead, something Robinhood doesn't.