Five states in the U.S. have become the first to try out Robinhood’s commission-free trading platform.
Commission-free trading of Bitcoin and Ethereum is finally here, as the popular online platform called Robinhood rolled out the widely anticipated program on Thursday.
Robinhood rolled out its always open, crypto trading platform as part of its efforts to expand cryptocurrency access and exposure to more people.
Robinhood has traditionally been favored by millennials interested in trading stocks, ETFs, and options. However, its around the clock commission-free cryptocurrency trading is thought to make it a formidable player in the crypto space.
Here we’ll go over how Robinhood is one to watch.
The rollout will be gradual, and available in only a few states in the U.S. At first, only Robinhood customers residing in California, Massachusetts, Missouri, Montana, and New Hampshire will be able to use it.
Robinhood is based in Palo Alto, Calif.
In its blog post about the commission-free trading, Robinhood stated:
We look forward to releasing crypto trading functionality in many more states later. In the meantime, all investors on Robinhood can monitor and track market data for 16 cryptocurrencies.
Meeting the demand
Robinhood officials say they have been overwhelmed by the enthusiasm towards Robinhood Crypto over the past few weeks. In the same blog post, the company stated:
Together, we reached four million users and well over $100 billion in transaction volume on our brokerage platform, leading to over $1 billion in commissions saved in equity trades. With the release of Robinhood Crypto, we’re continuing our mission of making the financial system work for everyone, not just the wealthy.
Cryptocurrency trading on the Robinhood platform is live and rolling out to the first set of customers starting today. #DontSleep https://t.co/OqnVYkKeYL
— Robinhood (@RobinhoodApp) February 22, 2018
Going up against the giant
We told you earlier this year that by Robinhood offering zero-commissions, it has the potential to emerge as direct competition for Coinbase. We noted that the time that Coinbase charges between 1.5% and 4% per transaction.
That’s not the only gripe of its users. They also complain about Coinbase’s patchy service and poor technical and customer support.
While Robinhood’s recent changes don’t specifically deal with such issues, it has put in place a system where customers can discuss issues. It’s created a crypto trading discussion forum called Robinhood Feed where visitors can discuss cryptocurrencies, news, and market swings, in real-time with other investors on Robinhood, according to the company.
In our last article on Robinhood, we also noted that because it already has an existing user base of around three million, it is ideally poised to give the crypto market a fresh push and open the gates for new money to enter the space.
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