How Do They Make Money?

Robin hoods stated mission is that they are aim to democratize financing for all. So it will be interesting to see how they approach this mission as supposed to companies like Charles schwab which arguably had a similar mission upon its inception decades ago. Of course what makes Robin Hood famous is the commission free brokerage app which offers services ranging from stocks, etfs, ADRs etc, but with another key difference is that Robin was the first to allow 24hr market trading and event contracts. Event contracts are basically like poly markets or outcome betting. Naturally of course because we live in the worst timeline Robinhood allows crypto trading. Its important to point out that Robin holds crypto currencies on behalf of their customers which suggests that customers don't hold the crypto directly. Odd thing to do with decentralized currency. To top it off Robinhood, like many app services today, offers a gold subscription which allows customers extra perks like advanced market data, lower commission on options and access to investing on margin. They also include a Robin "Gold Card" which is essentially a credit card tied to a bank the company works with called Costal community bank. When I read the part of their growth strategy, what got my attention was the part about how they plan to expand their asset classes such as index options, event contract and futures. This lends evidence to those being Robinhoods most profitable asset classes on their app. Their right when they talk about their competitive advantages being the vertical design of the app and internet scale to keep customers engaged. Without these Robinhood likely wouldn't stand out among other online brokerage services. Its important to point out that they admit their company may not grow at historical rates as it did before.