Robinhood's BTC Trading Fees Exposed: Nearly 2% Cost for Traders

Robinhood's default route for trading Bitcoin (BTC) is costing traders nearly 2% in fees, according to Delphi Digital co-founder Tommy Shaughnessy.

The issue lies in the spread between buying and selling prices, which can reach as high as $1,426.03, or a 1.87% difference between the bid and ask prices.

This 'spread' is where Robinhood gets paid for routing trades through an outside firm instead of a direct exchange, earning $0.95 for every $100 of volume routed in this way.

Buyers pay the higher price to buy BTC, while sellers receive the lower price to sell it, resulting in a total cost of nearly 2% before market fluctuations are taken into account.