Robinhood Crypto Expands to Three More States
Crypto trading app Robinhood is now available in more U.S. states. In October, the platform has launched services in Rhode Island, Tennessee and Arkansas. The move brings the total to 24 states whose residents can now make zero-commission trades in several leading cryptocurrencies.
App Available in Rhode Island, Tennessee, Arkansas
Robinhood, the popular mobile application that offers free trading of stocks, options, exchange-traded funds (ETFs), and crypto assets, has recently expanded its coverage in the U.S. adding Rhode Island, Tennessee and Arkansas since the beginning of October. The consecutive announcements made on social media came after the company launched in Alaska and Oklahoma last month.
“Hot-springing into Arkansas… rockin’ & rollin’ in Tennessee… anchored in Rhode Island,” Robinhood informed its community in separate Facebook posts. The California-based startup, which launched its crypto trading platform in February, used the opportunity to remind its followers, users, and potential clients that its service comes free of commission.
In early 2018, Robinhood Crypto started trading in just four states. Its geographical reach has since grown to 24 different jurisdictions in the U.S. Besides the five states added recently, the list includes Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, Pennsylvania, Texas, Utah, Virginia, and Wisconsin.
Robinhood Supports Major Cryptocurrencies Including BCH
This year, the fintech firm also expanded the list of supported cryptocurrencies. They were only two in February – bitcoin core (BTC) and ethereum (ETH). Then in July, bitcoin cash (BCH), litecoin (LTC), and dogecoin (DOGE) were added. In August, the platform announced support for ethereum classic (ETC).
Being a zero-commission service, Robinhood, nevertheless has to somehow earn its revenues. It does that by collecting interest on funds that are held in user accounts, selling its customers’ orders to exchanges that need liquidity, and offering subscriptions to Robinhood Gold. The package costs up to $200 a month and allows margin trading.
Because of the nature of some of its operations, like accepting payment for order flow, the platform was accused of taking away from young investors to give to the high-frequency Wall Street traders. According to a media report, it sells some of the orders for more than ten times as much as other brokers. The company defended its practices stating that as a licensed brokerage it must execute customer orders at the best available price across every regional and national stock exchange.
What do you think about Robinhood’s rapid expansion and its services? Tell us in the comments section below.
Images courtesy of Shutterstock, Robinhood.
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