Robinhood Introduces Cryptocurrency Trading To Its Customers With No Fees
The Robinhood trading platform recently announced the launch of a new feature that will support cryptocurrency trading on the platform and it will reportedly not charge any commission. It has been launched in Montana, Missouri, New Hampshire, Massachusetts, and California although it will most likely be expanded to other regions in the future.
The platform will allow users to trade cryptocurrencies such as Ethereum and Bitcoin and the kick is that they will not be charged any extra costs. Additionally, traders will be able to keep track of their cryptocurrency portfolio through an app. the trading platform currently supports 16 cryptocurrencies. Robinhood will compete directly with the likes of Coinbase which charges between 1.5 and 4 percent in fees.
The fact that Robinhood is not charging any extra fees makes it an attractive option for traders and it might even surpass Coinbase as the ideal crypto trading app due to the fact that it cuts down on fees. The trading service is using the no-fees policy to attract more users to its regular trading platform which supports Options, EFTs and stock trading. Its Tron interface adopts a stylish interface that is also easy to use for checking news and pricing.
The company initially revealed plans to launch a cryptocurrency trading platform towards the end of January and this led to an increase in the number of users with the number almost reaching 1 million users.
Robinhood released a statement saying: "Together, we reached four million users and well over $100 billion in transaction volume on our brokerage platform, leading to over $1 billion in commissions saved in equity trades. With the release of Robinhood Crypto, we’re continuing our mission of making the financial system work for everyone, not just the wealthy.”
Robinhood did not reveal any details about how it plans to manage the cryptocurrency wallets although there will most likely be a third-party provider according to various sources. Another thing that has raised questions about the new cryptocurrency trading service by Robinhood is the fact that it does not allow users to withdraw or deposit digital currencies directly on the service. However, this could be tied to the fact that Robinhood has not integrated the ability for users to directly access their wallet addresses. The company pointed out in one of its statements that it plans to introduce support for direct withdrawals in the future.