The first batch of Robinhood Crypto platform’s users are set to enjoy Zero fee trading in Ethereum (ETH) and Bitcoin (BTC).
After the launch of Robinhood mobile trading app, customers from Montana, Massachusetts, Missouri, New Hampshire and the US states California will be the first to benefit. Although, Robinhood Company will start rolling out gradually the application so as to later encompass other more states.
Regardless of whether its actual trading feature is accessible, there are a wide variety of brokerage services on the app. The Robinhood app enables users to track and monitor the 16 cryptocurrencies for their market data and price. Real-time cryptocurrency market swings and news will be relayed in its news feed.
With such a rollout, Robinhood aims to get more new customers through its zero-fee cryptocurrency trading platform. Another blog post, Cryptoslate, suggests that nearly $1 bln commissions have been saved for more than $100 bln transaction volume that over 4 million Robinhood crypto users have traded.
How does it work?
Vlad Tenev, Robinhood co-founder, told CNBC last month that Robinhood app that is incorporated into the Robinhood crypto only facilitates trading using the current exchanges instead of giving exchange services.
The detailed rates of executing the trades or the exchanges that will execute the trades through the Robinhood app were not put into the public domain by Robinhood. Also, the information about the management of the crypto wallets was also not dispersed yet or whether it will be a “third party wallet provider”.