The Secret Behind Zero Commission Trading

Описание: #zerocommission #robinhood
Robinhood's "zero-commission" trading model generates significant revenue primarily by selling client order flow (PFOF) to market makers, who pay varying rebates for different asset classes. This revenue is further boosted by smart routing premiums and slippage, particularly for cryptocurrency transactions, where Robinhood can earn 55 to 57 base points per trade. This hidden revenue model allows Robinhood to offer seemingly free trading while profiting substantially from its users' activity, especially in less regulated areas like crypto.