How Robinhood.com Makes Money: A Brief History of a Trading System that Changed the World

In this article we breakdown:

• Robinhood versus other brokerage firms
• How Robinhood makes money
• If Robinhood is Safe
• And the General History Behind the Company

Before 2008, millennials and the now-evaporating middle class had very few options to trade stocks. Before that, stock trading was largely conducted by an elite group of older Americans that were in-the-know. The privileged group of individuals executed trades by phone calls or on paper. The trades took days or even weeks to execute. Information about stocks wasn’t largely available. And there certainly weren’t many analyst reports that were aggregated in easy-to-read infographics. Furthermore, low to mid income earners were left out of the picture.

Then along came Robinhood.com. For millennials and low-to-medium income earners, Robinhood delivered the opportunity to increase capital in a way that the previously marginalized population hadn’t been previously exposed to. The fully electronic trading company served as an access point that connected these groups and the world of stocks.

Now with 10 million users worldwide (as of June 2020), Robinhood is closing in on some of the world’s…