Recently, Robinhood, a microfinance company, has officially launched a commission-free cryptocurrency trading platform in the EU.
According to the official statement, Crypto Robinhood will provide the following features to users in Europe: the ability to buy and sell more than 25 cryptocurrencies directly through the Robinhood app, including Bitcoin, Ether (ETH), and Solana (SOL).
Robinhood has been in operation for 10 years and has become a popular name for new traders and small investors. To promote users in Europe, Robinhood plans to launch a unique and exclusive loyalty program. Under this program, a percentage of each user’s monthly trading volume will be refunded in Bitcoin.
This launch coincides with the recent surge in the cryptocurrency market. In November alone, Robinhood saw a 75% increase in trading volume compared to the previous month, demonstrating the superior investment of small investors.
However, Robinhood’s cryptocurrency services are currently limited to investors in Europe and there are no plans for users in the UK due to strict legal constraints.
Robinhood generates revenue through discounts from market makers and trading venues to facilitate trades on behalf of Robinhood. In the European market, these discounts will be significantly higher, reaching “about 65 basis points” per trade, nearly double the 35 basis points earned in the US.
Robinhood has a license to operate a virtual currency exchange in Lithuania and is actively pursuing approval in other EU countries. When new regulations on the cryptocurrency asset market (MiCA) of the EU take effect in early 2025, Robinhood will need to be fully authorized as a cryptocurrency service provider in at least one EU member state.