7 ms·

Any broker can reduce trading fees to zero. How does Robinhood afford it?

• llccbb 8y ago
  >> Robinhood rockets to a $5.6B valuation with a massive new funding round
• argonaut 8y ago
  Other brokers don't want to hurt their margins. Etrade made 614 million in profit in 2017. 19% of revenue was from order commissions, or roughly 449 million. So Etrade could eliminate commissions and still remain profitable. https://en.wikipedia.org/wiki/E-Trade https://en.wikipedia.org/wiki/E-Trade