The Business Model of Robinhood
Robinhood's app and website allow users to trade stocks, ETFs, options, and cryptocurrencies commission-free. As a result, users are not charged any fees, and commissions on stock orders are also completely waived. Robinhood Gold is the company's premium edition, which costs five dollars each month. Users can make fast deposits of up to 50,000 USD instead of 1,000 USD and get access to margin investments. If margin investments are used and the margin exceeds USD 1,000, annual interest of 2.5 percent is additionally accrued on the difference. Additionally, gold customers have access to Morningstar research publications and more detailed market data from Nasdaq. Additionally, Robinhood offers a service called Cash Management. This implies that Robinhood users will earn a guaranteed 0.3 percent annual interest on their sweep cash, or surplus liquidity, credited to their clearing account. Cash Management subscribers receive a debit card for ordinary money transactions through a partnership with Sutton Bank, which is licensed by Mastercard.