Crypto Platforms' Zero-Commission Deception

Several cryptocurrency trading platforms advertise zero-commission trading, but a closer look reveals that these platforms still generate billions in revenue from customers who believe they are trading for free. Robinhood, Webull, and MEXC are among the platforms that promote zero-commission crypto trading, but they make money through spreads, payment for order flow, trading fees, or premium subscription tiers.

Robinhood earned $2.628 billion in transaction-based revenue during fiscal year 2025, up 60% from $1.647 billion in 2024. The SEC fined Robinhood $65 million in 2020 for misleading customers about how the platform generated revenue from trades marketed as commission-free to retail investors.

Withdrawal fees on some zero-commission platforms can exceed the underlying blockchain network cost, making transfers off the platform more expensive than the advertised trade. The SEC's regulatory agenda includes proposed rulemakings covering crypto asset offerings, crypto trading on alternative trading systems and exchanges, and broker-dealer activities.