Robinhood Launches Commission Free Crypto Trading App in EU
Robinhood is expanding its services in the European Union (EU) by launching commission-free crypto trading.
The move comes just a week after the company made its international debut with stock-broking services in the UK.
The Robinhood app, set to go live on Thursday, will enable European investors to buy and sell over 25 cryptocurrencies, including popular options like Bitcoin, Ether, and Solana’s SOL, Johann Kerbrat, the general manager of Robinhood Crypto, told Bloomberg .
To further incentivize users, Robinhood will introduce a loyalty program that functions similarly to cashback.
A percentage of each user’s monthly trading volume will be credited in the form of Bitcoin.
The launch of the app coincides with a recovery in crypto prices, driven by expectations of potential US interest-rate hikes being reversed and the industry potentially witnessing the introduction of the first exchange-traded fund directly tied to Bitcoin as early as next month.
In November, Robinhood reported a 75% increase in notional trading volumes for crypto compared to the previous month.
However, Robinhood currently has no immediate plans to offer its crypto services to UK investors, citing a lack of regulatory clarity surrounding digital assets in the country.
The revenue generated by Robinhood’s crypto brokerage will come from rebates received from market makers and trading venues executing trades on its behalf.
In Europe, the rebate will be approximately “65 basis points” per trade, nearly double the 35 basis points earned from crypto orders executed in the US.
Despite the rise in crypto prices this year, trading volumes have remained relatively low compared to the retail investor surge witnessed during the COVID-19
