Robinhood App to Offer No-Fee Bitcoin Trading

Ned Piplovic

Bitcoin

The stock-trading app Robinhood provided tech-savvy individuals easy access to trading stocks in 2014 and is trying to do the same for cryptocurrency trading.

With more than 13 million users, Coinbase is still the largest mainstream brokerage for bitcoin trading. However, the brokerage received occasional criticism for its fees that can be excessive at times and fluctuate depending on the time of day and usage volume. Here is where the app from Robinhood comes to the rescue.

The app plans to offer the no-fee trading service starting in February 2018 on a limited basis. According to Robinhood’s CEO Baiju Bhatt, only users “in good standing that have had accounts for a relatively long period of time” will initially have access to the service and only in five states. Robinhood continues to work on acquiring necessary licenses in all states. However, the company received their licenses only for California, New Hampshire Massachusetts, Missouri and Montana so far. According to Robinhood’s own survey of its users, 95% of users are either “very likely” or “extremely likely” to invest in cryptocurrencies. That level of interest and the limited initial access should create a long waiting list for the new service.

Initially, the Robinhood Crypto app will offer trading in only two cryptocurrencies – ether (Ethereum network’s blockchain token) and bitcoin. However, users can track price movements 14 additional cryptocurrencies – bitcoin cash, bitcoin gold, dash, ethereum classic, lisk, litecoin, monero, NEO, ogecoin, OmiseGo, Qtum, ripple, stellar and Zcash. Interested users do not have to wait until trading commences next month, but can set up monitoring and tracking for any of the 16 cryptocurrencies right now.

Exclusive  Outsmarting the Billionaire Bear Club

It is important to note that while the new app might provide easy access to cryptocurrencies, the risk of loss is at least as high as trading stocks or exchange-traded funds (ETFs), if not higher. Additionally, unlike its parent company – Robinhood Financial – Robinhood Crypto is not registered with the U.S. Securities and Exchange Commission (SEC) and is not a member of the Financial Industry Regulatory Authority (FINRA).

However, Robinhood Crypto is registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business. That means that “Robinhood Crypto is subject to the requirements of the Bank Secrecy Act as well as the money transmitter laws of most U.S. states, Bhatt said.

Since bitcoin rose more than 1,000% and ether rose almost 10,000% in the past 12 months, demand for cryptocurrencies appears to be strong and Robinhood plans to capture first mover advantage.


Ned-Piplovic

 

 

Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


 

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

While Tesla (NASDAQ:TSLA) has been the most visible driving force behind the effort to introduce electric vehicle into the mainstream, traditional automobile manufacturing companies are taking action to compete effectively. During the North American International Auto Show in Detroit, BMW (FWB:BMW) updated the expected range information from last May’s introduction of its

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 5 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

LEARN MORE HERE

Jim Woods

A 20-plus-year veteran of the markets, Jim Woods has varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.

Product Details

LEARN MORE HERE

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE