[CapriciousCptl]

Per-user revenue was $109 for 2020. My goodness payment for order flow and cryptocurrency rebates are lucrative.

[ok2938]

Funny that you are being played most, when you think you are in control.

[porb121]

You are literally required to get better fill prices than the market with PFOF. You aren't being played any more than if you just send a normal limit order to the market

[cloudwalking]

If UX was the gating factor for buying crypto, and Robinhood let you buy crypto... you had _enough_ control.

[RobRivera]

yea - everytime I try to explain to peers and family what the price of free is, deaf ears.

[rattray]

What was the equivalent per-user revenue for e-trade, schwab, fidelity, etc before Robinhood came to town?

[Ozzie_osman]

Out of curiosity what's the fastest way to find that metric in the S1?

[CapriciousCptl]

ctrl+f arpu ctrl+f churn ctrl+f key performance

etc

[MuffinFlavored]

$9/user per month?...

[vasco]

Just like "no fee" money exchanges in airports with huge spreads. Same business but internet scale and with the new hype of investing.

[FabHK]

Though, to be fair, Robinhood offers reasonably spreads.

They must execute client orders at a price as good as or better than the national best bid offer, if I understand correctly (Reg NMS [1]). Now, the firms that buy that order flow offer better (tighter) prices, an improvement over the NBBO, and what Robinhood does is take a cut of that improvement.

(Robinhood takes a larger cut than other brokers, fair enough, but those other brokers used to charge an additional flat fee. So, for small orders, you're better off with Robinhood, for large orders you're better off with a different broker. Note that this was the behaviour that triggered regulatory action a while ago, and the situation might look different now, given that other brokers also offer trades without commission. Either way, you should get executed at NBBO or better.)

[1] https://www.investopedia.com/terms/r/regulation-nms.asp