The famous stock trading app Robinhood will allow users from different states to trade cryptocurrencies with zero-fees. In a recent blog post uploaded by the company, the team has announced that they are going to add cryptocurrencies to the platform. In this way, customers will be able to trade cryptocurrencies alongside stocks, ETFs, and other options. The only cryptocurrencies that could be used at the beginning will be BTC and ETH.
Robinhood: Zero-Fees for Cryptocurrency Traders
The announcement made on January the 25th, explains that instant bank transfers up to $1,000 dollars will be available in the account to start trading. But one of the most interesting aspects of this platform is that it offers a Commission-Free service.
This could be an opportunity to challenge Coinbase and other platforms in the United States. Other companies charge high fees for trading cryptocurrencies and offer a very poor customer support and sometimes service outages. The company explains that they are not planning to profit form it at least for the foreseeable future.
The statement reads as follows:
“Today, cryptocurrencies are coming to the Robinhood platform. We believe that cryptocurrencies have the potential to fundamentally reorganize the way money works from the ground up, putting power previously held by financial institutions directly in the hands of the people.”
Robinhood makes money by selling premium accounts at a price of $6 dollars per months. In addition to it, the company earns revenue by collecting interest on the cash and securities in Robinhood accounts. But trading is always free of charge.
Different cryptocurrencies will be supported at the beginning. The company said that it will start offering 16 cryptocurrencies to the watch list, monitor market data, cryptocurrency news and custom price alerts. Among these we can find Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple and Stellar.
In February, cryptocurrency trading will be available for individuals from California, Massachusetts, Missouri, Montana, and New Hampshire. The only cryptocurrencies supported for trading will be Bitcoin ( BTC ) and Ethereum ( ETH ).
“We saw an opportunity to build a better experience to trade cryptocurrencies, one where you can invest commission-free in cryptocurrencies alongside stocks, ETFs, and options, track different coins, and read market news.”