This is how it works: When customers place trades on the platform, their orders are routed to market makers or trading firms for execution and to make an order flow. These firms pay Robinhood fees for the opportunity to execute their trades and potentially profit from the bid-ask spread and other trading strategies.

How Does Robinhood Make Money? Robinhood's business model has a few different revenue streams. These include payment for order flow (PFOF), Robinhood Gold subscription fees, interest on margin loans and securities loans, income generated from cash, and interchange fees.

Robinhood is an investment platform offering commission-free trading of stocks, ETFs, cryptocurrency, and options - all through a mobile app or website.

Vlad Tenev Vlad TenevChief Executive Officer and Co-Founder Vlad Tenev is a Co-Founder of Robinhood and, since November 2020, has served as Chief Executive Officer (“CEO”) and President of Robinhood.

Brokerage accounts are offered through Robinhood Financial LLC (member SIPC), which is a registered broker-dealer. Robinhood Securities, LLC (member SIPC) is a registered broker-dealer and provides brokerage clearing services. Both are subsidiaries of Robinhood Markets, Inc.

We work with a partner bank to process your direct deposit, so these funds are received by the bank. Once our partner bank confirms receipt of your direct deposit, we're then able to credit your spending account. You can expect this to happen around 10 AM ET on the day your direct deposit lands.

Robinhood Crypto generates the majority of their revenue from rebates from market makers and trading venues. *No commission on trades of crypto. Other fees may apply, such as for Robinhood Connect. Check out Robinhood Crypto's Fee Schedule for details.

How Do Market Makers Earn a Profit? Market makers earn a profit through the spread between the securities bid and offer price. Because market makers bear the risk of covering a given security, which may drop in price, they are compensated for this risk of holding the assets.

Additionally, any fees Robinhood receives may vary and is subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.

About Robinhood Robinhood made its name on $0 trading fees, and its example helped spur a number of other large brokers, such as E*TRADE, TD Ameritrade and Charles Schwab, to eliminate their own trading fees.

Robinhood is best for: Mobile users. Individual taxable accounts and IRAs. Margin accounts.

Is Robinhood Safe to Use? YES–Robinhood is absolutely safe. Your funds on Robinhood are protected up to $500,000 for securities and $250,000 for cash claims because they are a member of the SIPC (Securities Investor Protection Corporation).