Although broker-dealers, banks, and financial institutions also operate in Robinhood on trading and broker activities, market manufacturers are dominant, including those in Crypto.
This is what appears From the latest quarterly report Submitted by company to Sec.
Robinhood is a USA company listed in the Stock Exchange, so it is legal to submit periodic economic financial reports to the agency that oversees the bull and bear market of security in the United States.
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Robinhood
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Robinhood Markets is a U.S. financial service company established in 2013 and headquarter in Menlo Park, California.
This is listed in Nasdaq since 2021 with ticker HoodAnd recently its stock has recorded a great rally.
The company is primarily known for its Commission-Free Online Trading App, where both traditional properties and cryptos can be replaced.
It is primarily aimed at investors and speculators, especially young people, and perhaps for this reason that crypto has gained traction on this platform.
The Stock Exchange debut took place at a price of $ 38, which immediately hired at 85 in the month following the list. However, that bubble exploded next month, and by the end of the year, the price had fallen below the initial price.
During the bear-market of 2022/2023, the hood stock price fell below $ 7, but beginning in December 2023, it began a climb that was effectively ended only in February this year. The peak of 2025 was recorded just below $ 67, which was significantly higher than the current price, but less than all times high four years ago.
Crypto market makers in Robinhood
In the lengthy quarterly report submitted only to the SEC, and specifically in Note 1 on page 11, data about the revenue concentrations of the first quarter of 2025 were reported.
What appeared was 63% of the company's total revenue from January to March of this year came from the united market. Moreover, in the first quarter of last year, this percentage was 52%, so the latest figure also showed a strong increase compared to a year ago.
The major market manufacturers who generated Robinhood revenues in the first quarter of 2025 were the Citadel Securities and B2C2 USA, with 12% each, followed by wintermute trading with 11%.
Crypto market makers are creatures or companies that provide liquidity in cryptocurrency markets. Their main role is to ensure that there are always buyers and sellers available for a certain crypto, facilitating transactions and making the market better.
Technically, they operate in exchanges by continuing to put in purchase and sell orders for different cryptocurrencies, and they earn from the difference between the purchase price and the price of sale in the so -called spread. In fact, they buy at a slightly lower price and sell at a slightly higher price, thus making little income in each transaction, but there are a large number of automatic transactions.
By continuing to put new purchases and sales orders, they effectively provide liquidity in the exchanges, moreover, they reduce the gap between the maximum purchase price and the lowest sales price.
In this way, other merchants, called market seasons, can perform their orders faster and have a less difference between the expected price and the actual implementation price (the so -called slippage).
In fact, market makers are essential for the proper functioning of crypto markets.
Robinhood's revenues
Robinhood does not charge commissions on transactions, so it does not generate income from user commissions.
Instead, it uses the so -called payment for the Order Flow (PFOF), which consists accurately in directing users' orders to market makers, rather than directing them directly to the exchanges. Therefore, market makers pay a small commission on the platform.
This is why most of the company's income comes from market makers and not from users, even in reality, ultimately, the fees applied to market makers are somehow paid by clients by spreading prices.
However, Robinhood also generates other types of income, such as interest in customer cash balances, or in margin and securities lending: moreover, it offers a variety of paid additional services and a debit card where it earns a small commission on its use.
