Seems like a good idea and it's always better to keep those trading costs low. Saving $10 off each trade sounds good to me. How do they make money though?
Seems like a good idea and it's always better to keep those trading costs low. Saving $10 off each trade sounds good to me. How do they make money though?
So according to investopedia, "generates interest off of unused cash deposits from user account according to federal fund rates."
It also appears that they "loan" funds through their Robinhood Gold, allowing you to use up to $2000 in "Gold Funds" to trade even when you don't have the cash. I'm guessing you pay back the loss on bad trades.