Robinhood Offers Crypto Trading “at the Lowest Cost,” | Crypto Work Pro
Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s prime prosecutor for claiming that it presents crypto trading “at the lowest cost on average.” The state cop can also be issuing a subpoena to the trading platform to uncover inner paperwork.
“The Least Expensive Way to Purchase Crypto”
According to Florida’s Attorney General, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least expensive way to purchase crypto—when there is evidence to suggest that is not true.”
The prosecutor said that Robinhood Crypto is allegedly violating the state’s Deceptive and Unfair Practices Act.
James Uthmeier, Florida’s Attorney General
“When consumers buy and sell crypto assets, they deserve transparency in their transactions,” mentioned Attorney General James Uthmeier. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
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The authority is questioning Robinhood’s payment-for-order-flow (PFOF) model, which it additionally makes use of to execute crypto trades. Instead of charging a commission, the company earns income by routing buyer trades to third-party companies in exchange for cost.
“There is evidence that trading on Robinhood is actually more expensive than trading on competing platforms due to its PFOF structure versus competitors offering all-in trading costs,” the prosecutor’s workplace said.
Crypto Is a Key Revenue Driver
Although Robinhood turned common for commission-free stock trading, crypto has change into one of its fundamental sources of income. Revenue from crypto has even overtaken its earnings from choices trading, which was its prime earner for years.
However, in the first quarter of 2025, income from crypto dropped to $252 million, about 30 per cent decrease than the earlier quarter. The company is now contemplating decreasing its dependence on crypto as trading volumes fluctuate.
The platform not too long ago launched tokenised shares for its customers in Europe. That transfer, nevertheless, stirred controversy as the European Union opened an investigation into the construction of tokenised shares of a number of personal companies provided on the platform.
Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s prime prosecutor for claiming that it presents crypto trading “at the lowest cost on average.” The state cop can also be issuing a subpoena to the trading platform to uncover inner paperwork.
“The Least Expensive Way to Purchase Crypto”
According to Florida’s Attorney General, James Uthmeier, Robinhood’s crypto unit falsely promoted its platform as “the least expensive way to purchase crypto—when there is evidence to suggest that is not true.”
The prosecutor said that Robinhood Crypto is allegedly violating the state’s Deceptive and Unfair Practices Act.
James Uthmeier, Florida’s Attorney General
“When consumers buy and sell crypto assets, they deserve transparency in their transactions,” mentioned Attorney General James Uthmeier. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”
You may additionally like: Tokenised Stocks Are Here, however Do They Really Bring Added Value over CFDs?
The authority is questioning Robinhood’s payment-for-order-flow (PFOF) model, which it additionally makes use of to execute crypto trades. Instead of charging a commission, the company earns income by routing buyer trades to third-party companies in exchange for cost.
“There is evidence that trading on Robinhood is actually more expensive than trading on competing platforms due to its PFOF structure versus competitors offering all-in trading costs,” the prosecutor’s workplace said.
Crypto Is a Key Revenue Driver
Although Robinhood turned common for commission-free stock trading, crypto has change into one of its fundamental sources of income. Revenue from crypto has even overtaken its earnings from choices trading, which was its prime earner for years.
However, in the first quarter of 2025, income from crypto dropped to $252 million, about 30 per cent decrease than the earlier quarter. The company is now contemplating decreasing its dependence on crypto as trading volumes fluctuate.
The platform not too long ago launched tokenised shares for its customers in Europe. That transfer, nevertheless, stirred controversy as the European Union opened an investigation into the construction of tokenised shares of a number of personal companies provided on the platform.
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