Crypto traders in California, Massachusetts, Missouri, Montana and New Hampshire will be the first set to enjoy Robinhood's zero-fee trading service newly launched yesterday. Popular large exchange Coinbase now has a notable, serious competitor in Robinhood and its over 4 million users.
In the zero-fee trading service, users of its sleek trading app can buy and sell BTC and ETH without having to pay any extra charges. They can also use the app to track their BTC and ETH, including 14 other coins in their portfolio. This is sweet music in the ears of US Coinbase users who have to part with 1.5% to 4% of their funds in fees. New users can join the waitlist through a form on their site.
By offering such minimalistic trading fees, Robinhood could push Coinbase to the background. As the higher the worth of the funds being traded, the higher fees (beyond 4%) charged by Coinbase.
Giving zero-fee trading service will help Robinhood boost its user base for its stocks, ETF and options trading service it currently offers in addition to crypto trading.
Supporting the following coins, Bitcoin, Ethereum, Bitcoin Cash, Bitcoin Gold, Dash, Dogecoin, Ethereum Classic, Lisk, Litecoin, Monero, NEO, OmiseGo, Ripple, Stellar, Qtum and Zcash, users can now get latest news about them through the stylish retro-future Tron interface. It also supports tracking and would soon be available in more states and for those on the waiting list soon.
The latest service feature was announced last month and got over a million sign ups within four days. And since then, Robinhood's user base has spiked to 4 million plus. These millions of users have used the trading service for over $100 billion worth of crypto, with Robinhood saving everyone $1 billion in commissions.
Other stock trading services like E*Trade and Scottrade, charge users a minimum of $7 per trade to pay for marketing, sales and office expenses. Robinhood on the other hand, is able to offer zero-fee service by staying lean in its operations since launch in 2013.
Okay, I know you're beginning to wonder, how then do these guys make money? Robinhood takes interests from the funds users keep with them. They also offer a monthly Gold subscription where users can borrow trading money.
￼A recent $1.3 billion valuation has helped Robinhood raise $176 million for its business. It's zero-fee trading is sure to appeal to majority of amateur traders and investors.
Maximum security is now very crucial, considering the sad stories of breach on other crypto trading and exchange platforms. It appears though, that Robinhood is up to the task and would ensure its users have excellent trading services whether at night or day.