The platform, a favorite among millennials which are interested in trading stocks and ETFs, has announced that it will provide trading services for cryptocurrencies, charging no fees.
Baiju Bhatt, co-founder and co-CEO of Robinhood, has told Forbes:
“Now in Robinhood, for the first time, consumers will be able to invest in and trade stocks, ETFs, options and cryptocurrencies all in one place. You don’t need to have different apps, or be checking stocks on Robinhood and then logging into some exchange in Asia to trade your cryptocurrencies. It’s all consolidated.”
This major development in the crypto market has been praised by the community for various reasons. By not charging any fees for its services, Robinhood has the prospective of becoming a worthy adversary for Coinbase, the latter having charges that range in between 1.5% and 4% for transaction, and has recently been experiencing poor service, technical and support wise.
Furthermore, Robinhood has already 3 million users, being in a favorable position of facilitating the entrance of new money into the crypto market.
The commission-free service will be available in February for citizens from certain states in the U.S. Robinhood will allow trading with Bitcoin and Ether, and users will be able to track the prices of 14 other digital currencies: Bitcoin Cash, Bitcoin Gold, Litecoin, Ripple, Ethereum Classic, Monero, OmiseGo, Lisk, Dogecoin, Stellar, Dash, Qtum and Zcash.
Regarding the initial coin selection, co-founder Vladimir Tenev has to say on the matter: “We’re extremely selective about the cryptos we’re making available on the platform. We’re introducing those first because these are the most mature coins that people are trading these days. Multiple times people have declared them dead and they’ve come back stronger than ever.”
Seeing as Robinhood will not have any fees for crypto transactions, there will not been any immediate profits from the impending development. In spite of this, the team is confident that this venture will contribute to the growth of their customer base and improve the experience for the existing users, which will materialize in long-term benefits for the platform.
It remains to be seen what kind of volume Robinhood will generate, or if it will actually manage to be a direct competitor to Coinbase.