Robinhood introducing free crypto trading
Trading will be available in five different US states from February 2018, with plans to expand nationally.
Robinhood, a US-based trading app popular with millennials, has announced that it will allow users to trade cryptocurrencies, commission-free, alongside stocks, exchange-traded funds (ETFs) and options strategies.
The app will also offer real-time market information, tracking the values of 16 different digital coins and providing current market news and updates, as well as the ability to create customized price alerts.
Robinhood will track bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), Ethereum Classic (ETC), Zcash (ZEC), Monero (XMR), Dash (DASH), Stellar (XLM), Qtum (QTUM), Bitcoin Gold (BTG), OmiseGo (OMG), NEO (NEO), Lisk (LSK) and Dogecoin (XDG).
Trading will commence in February 2018, initially limited to bitcoin and ethereum, with more tradeable coins to be added later. Robinhood residents in California, Massachusetts, Missouri, Montana, and New Hampshire will be the first to be able to trade cryptocurrencies on Robinhood Crypto, with other states to follow.
Bank transfers up to $1,000 will be instantly available in customers’ accounts to trade cryptocurrencies. Any additional funds transferred will be deposited via the regular automated clearing house transfer system.
More than 500,000 people have already signed up to receive early access to trading via the official website.
Robinhood co-founder Vlad Tenev told TechCrunch that the stock brokerage, which currently has a user base of over three million customers, doesn’t expect its new crypto trading platform to turn a profit immediately.
“We’re planning to operate this business on break even basics and we don’t plan to profit from it for the foreseeable future. The value is in growing our customer base and better serving existing customers,” he said.
Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000.
This week, cloud-based financial services platform Uphold entered into a partnership with an early investor in Ripple, Square, Coinbase and other crypto companies, to expand its loss assurance ratio for fund members.
Additionally, crypto platform Stellar Lumens released its 2018 Roadmap, revealing plans to incorporate high-volume micropayments enterprise the Lightning Network to enhance scalability and improve security.