Robinhood both increased its future value by signing up a lot of customers, and increased its present profits by extracting a lot of money from them each day. This can cause issues, so it’s better to keep it short, or better yet, don’t explain yourself when you know this person will just twist the story. They would ask for an explanation and twist it or get angry. meme-stock mania: The whole world’s attention was focused on the soaring price of GameStop stock, which was leading a lot of people to sign up for Robinhood and trade GameStop, and GameStop was very volatile and so Robinhood got paid a lot for trading it. It’s normal for toxic people to confront you about this and, in some situations, can even throw the blame on you. That was the height of the GameStop Corp.
So the more people who sign up for Robinhood’s service, and the more they trade, and the more volatile the stocks that they trade are, the more money Robinhood makes.īy this standard, the last week of January 2021 was incredibly, incredibly good for Robinhood, an amazingly perfect week. Unlike many other retail brokers, Robinhood charges these market makers a variable fee that is, roughly speaking, higher for very volatile stocks.
The way it makes money is that each time its customers trade stocks (or options, or cryptocurrencies), Robinhood sends their order to a market maker, and the market maker pays Robinhood a tiny fee for the right to execute the order. The more people who sign up for accounts, and the more they trade, the happier Robinhood is. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators.
is in the business of getting people to trade stock (and options, and cryptocurrencies) on their phones.
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