How Do They Make Money?

Major sources of revenue:

• Transaction based revenues

  • Payment for order flow (PFOF)

  • "transaction rebates" for crypto, same thing as PFOF

• Net Interest Revenues

  • they make money on interest from margin loans, cash equivalents, deposits, carried customer credit card balances

• Other Revenues

  • RH gold subscription fees, advertising, proxy revenues

• Robinhood Match Incentives

  • offer match incentive on customer's contributions to retirement accounts