What is the cost of trading on Robinhood for cryptocurrencies?

3 answers

• Dec 30, 2021 · 3 years ago
  Trading cryptocurrencies on Robinhood comes with certain costs. While there are no commission fees for trading, Robinhood makes money through a practice called payment for order flow. This means that when you place a trade, Robinhood routes your order to market makers who pay Robinhood for the opportunity to execute your trade. These market makers may not always offer the best price, resulting in a slight price difference known as the bid-ask spread. Additionally, Robinhood charges a fee for certain types of orders, such as limit orders and market orders. It's important to consider these costs when trading on Robinhood.
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• Dec 30, 2021 · 3 years ago
  When it comes to trading cryptocurrencies on Robinhood, there are a few costs to keep in mind. First, there are no commission fees, which is great for cost-conscious traders. However, Robinhood makes money through payment for order flow, which means that they receive compensation for directing your trades to certain market makers. This can result in a slight difference between the price you see on Robinhood and the actual market price. Additionally, Robinhood charges fees for certain types of orders, such as limit orders and market orders. It's important to understand these costs and factor them into your trading strategy.
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• Dec 30, 2021 · 3 years ago
  Trading cryptocurrencies on Robinhood is commission-free, which is a major advantage for traders. However, it's important to note that Robinhood makes money through payment for order flow. This means that they receive compensation for directing your trades to specific market makers. While this may result in a slight difference in price, it allows Robinhood to offer commission-free trading. It's also worth mentioning that other platforms, such as BYDFi, charge trading fees. So, if you're looking for a cost-effective option, Robinhood is definitely worth considering.
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