Robinhood Claims ’Lowest Cost’ Crypto Trading—But Is It Too Good to Be True?
Robinhood’s latest pitch promises crypto trading 'at the lowest cost'—but savvy investors are raising eyebrows. With hidden spreads and payment-for-order-flow controversies, is the platform’s claim just marketing fluff?
The fine print behind 'zero fees'
While the app boasts no commission fees, traders still face bid-ask spreads that can quietly erode profits. Competitors like Binance and Kraken often offer tighter spreads—especially for high-volume pairs.
Payment for order flow: The Wall Street sleight-of-hand
Robinhood’s reliance on PFOF means market makers—not users—get the best prices. It’s the same model that drew SEC scrutiny for stock trading. Now it’s creeping into crypto.
Bullish on convenience, bearish on transparency
The app’s slick interface and fractional shares lure beginners, but seasoned traders know: true cost isn’t measured in fees alone. As one hedge fund manager quipped, 'Free trading is like a free puppy—the upfront price is just the beginning.'