![]() ![]() Robinhood’s PFOF is $0.00499 per share on stocks and $0.53 per contract on options. Robinhood-Lite clients get zero commission trading and fixed rate US equity options, but those orders are run to market makers who provide Robinhood with PFOF. Robinhood-Pro clients can route their orders as they please and the default routing doesn't seek PFOF. This is called payment for order flow (PFOF). Payment for order flow: Many brokers generate income by accepting payment from market makers for directing orders to those trading venues.Robinhood clients earn 1.5% interest on cash balances. Some brokers pass part of these earnings on to customers. Interest on cash: Like most brokers, Robinhood generates interest income from the difference between what you are paid on your idle cash and what it can earn on customer cash balances.Robinhood has become more transparent about payment for order flow and publishes its 606 report, but the reliance of Robinhood on PFOF is still not as widely understood as it probably should be. Investors may not have full confidence that they’ll have access to their positions. A history of lacking of transparency on outages and trading restrictions with meme stocks will give many traders pause before utilizing Robinhood as their preferred platform.Education material is improving, but there's still a lot of room for this area to grow in terms of both the topics covered and the formats available. There are no stock or ETF screeners available at all, and other research tools are rudimentary at best. Research and educational material at Robinhood don’t measure up to competitor standards, making it difficult for traders to get the most out of the platform.Moreover, only brokerage accounts can be opened on the platform, so investors miss out on retirement and other savings accounts. Robinhood doesn’t offer all of the assets some investors are looking for, such as fixed income, mutual funds, foreign exchange, or futures trading. Limited investment offerings and account types prevent users from taking advantage of a wide range of trading strategies and saving towards financial goals.Robinhood Gold members can now earn 3.0% on uninvested cash. The recurring investment feature is straightforward to set up, allowing users to quickly automate how much they put in the market at a cadence that makes sense for them. Interest on cash sweep accounts allow users to earn up to 1.5%. An innovative cash card lets users invest rewards earned from purchases. Solid cash management features and recurring investment functionality helps traders manage their money more seamlessly. ![]() Direct crypto access allows traders to buy and sell different coins with ease. Fractional share purchases can be made with as little as $1, and the dividend reinvestment program (DRIP) automatically reinvests dividends from stocks or ETFs (provided the positions support fractional shares).
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