People nowadays want to earn while sitting at home. One of the ways is through various online trading apps. Among all such platforms, Robinhood is one of them. It is also giving the choice to invest in stocks online and earn while being at home.
Let’s understand about the app and how does Robinhood make money for its online traders.
Basic Introduction: Robinhood is an American financial service company with its headquarters at Menlo Park, California. This company is private and is founded by Baiju Bhatt and Vladimir Tenev on 18 April 2013. The main function of this company is stockbroker and electronic trading platform. The company offers an online trading app that offers the facilities of investing in stocks, ETFs, and crypto trading. Robinhood on its website and mobile app on Android, iOS with no storefront branch and without any fees. The main idea of the company was to provide access to the financial market for all and not just only wealthy. The main concept of it is to eliminate the commission fee between the company and the user and give maximum profit to the customer or the user or the client. It gives equal treatment whether one is a beginner or an expert. Even before trading one can learn here about financing and stocks and get deep info about the stock market. It reacts with the real-time market and that too all without any commission fee. Even the trading and money transfers are secured by their very own Robinhood Financial LLC. Even interest can be earned from the money invested in stocks.
Products by Robinhood company:
Let’s see and learn how does Robinhood make money by various methods or ways.
- Stock and ETF trading: Robinhood introduced instants deposits from February 2016 crediting users with deposits up to $1000. Several major brokerages like ‘E-Trade’, ‘TD Ameritrade’ announced in quick succession in eliminating trading fees in October 2019, and competition with Robinhood was seen as a reason.
- Cryptocurrency trading: A waitlist for commission-free cryptocurrency trading on 25 January 2018. Robinhood also offered to trade about Bitcoins and Ethereum to users in California. In 2018 May, it expanded its trading platform to Wisconsin and New Mexico.
- Banking: It was reported that in June 2018, Robinhood was in talks about obtaining a United States Banking License. Savings and debit cards are also issued by Ohio based Sutton bank in early 2019.
- Others: A $5 optional membership plan which allows the user to get margin loans and investing tools.
The company also generates revenue from a broad range of sources like Gold membership fees, stock loans. This also helps the financial market as the user saves one or more companies when needed at times.
Robinhood is one of the good companies which helps you connect with the stock market and helps to earn you online. You can do earn from home along with work. Noting all the points about Robinhood, it can be said that it is a good trading platform but still the user or the client should use it with the pros and cons kept in mind as stated in the online mobile app “Investors should consider their investment objectives and risks carefully before investing”.