Although brokers, banks and financial institutions also operate on Robinhood in commercial and brokerage activities, market manufacturers dominate, including those of the crypto.
This is what emerges of the last quarterly report Submitted by society to the dry.
Robinhood is an American company listed on the stock market, it is therefore legally required to submit periodic financial economic relations to the agency which oversees the market for bulls and tours of securities in the United States.
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Robinhood Markets is a financial service company in the United States founded in 2013 and whose headquarters are in Menlo Park, California.
It has been listed on Nasdaq since 2021 with the Ticker HOODAnd recently, his stock recorded an excellent rally.
The company is mainly known for its online trading app, where traditional assets and crypto can be exchanged.
It is mainly aimed at retail investors and speculators, especially young people, and it is probably for this reason that the crypto has gained ground on this platform.
The stock market debut took place with a price of $ 38, which immediately soaked to 85 the month following the list. However, this bubble broke out next month, and by the end of the year, the price had already fallen below the initial price.
During the 2022/2023 bear market, the price of the hood stock dropped at less than $ 7, but from December 2023, it started a climb that did not effectively ended in February of this year. The peak of 2025 was recorded just below $ 67, which is significantly higher than the current price, but lower at the top of all time four years ago.
Crypto merchants on Robinhood
In the long quarterly report which has just been subject to the dry, and specifically to note 1 on page 11, data concerning the income concentrations of the first quarter of 2025 are reported.
What emerges is that 63% of the company's total income from January to March this year came only market decision -makers. In addition, in the first quarter of last year, this percentage was 52%, so the last figure also showed a sharp increase compared to a year ago.
The main market manufacturers who generated revenues for Robinhood in the first quarter of 2025 were Citadel Securities and B2C2 USA, with 12% each, followed by Wintermute Trading with 11%.
Crypto merchants are entities or companies that provide liquidity to the cryptocurrency markets. Their main role is to ensure that there are still buyers and sellers available for a specific crypto, facilitating transactions and making the market more efficient.
Technically, they operate on exchanges by continuously placing purchase and sale orders for various cryptocurrencies, and they gain the difference between the purchase price and the sale price with the so-called propagation. In fact, they buy at a slightly lower price and sell at a slightly higher price, thus making small profits on each transaction, but with a large number of automated transactions.
By regularly spending new purchase and sale orders, they effectively provide liquidity to the scholarships, moreover, they reduce the difference between the highest purchase price and the lowest sale price.
In this way, other traders, called market takers, can execute their orders more quickly and with less difference between the expected price and the actual execution price (the so-called shift).
In fact, merchants are essential for the proper functioning of cryptographic markets.
Robinhood's income
Robinhood does not provide commissions on transactions, it therefore does not generate income from user commissions.
Instead, he uses the so-called payment for the order flow (PFOF), which consists precisely in directing user orders to market manufacturers, rather than directing them directly to exchanges. Therefore, it is market manufacturers who pay a small commission at the platform.
This is why the majority of the company's income comes from market manufacturers and not from users, even if in reality, in the end, the costs applied to market manufacturers are still paid by customers through price differences.
However, Robinhood also generates other types of income, such as interest on cash sales of customers, or on loans on the sidelines and securities: in addition, it offers various additional paid services and a debit card through which it wins small commissions on its use.
