So I’m in the process of accepting a job at a company called Robinhood which does generated its revenue from multiple streams:
- Rebates from Market Makers: This is like a commision based transaction where the money is generated. When you buy or sell stocks, ETFs, and options through your brokerage account, your orders are sent to market makers for execution. so Robinhood gets fees from those market makers.
- Robinhood Gold: is monthly membership fee which gives you access to advance stock reports an analytics.
- Stock Loan and Income from cash: generates income on uninvested cash that isn’t swept to the Cash Management network of program banks, primarily by depositing this cash in interest-bearing bank accounts also by lending margin securities to counterparties.
- Cash Management through Sutton Bank, which issues the Robinhood debit card. Interchange fees are earned by most debit and credit card issuers and are meant to cover things like transaction processing and fraud loss.
Though one important thing to notice is that most of their revenue is generated through Rebates from Market Makers.
Please let me know your thought on working for this company. of course my role would involve protecting the servers and applications from adversaries.