Last week, crypto trading platform Robinhood announced the expansion of its services to three more states in the US. The Menlo Park-based firm now offers zero-commission cryptocurrency trading to 24 US states.
Trading App Now Available in Arkansas, Rhode Island, and Tennessee
The platform announced the news in a series of Facebook posts and tweets published on Friday (October 5, 2018) which read:
Robinhood Crypto is hot-springing into Arkansas […] is anchored in Rhode Island, […] and is rockin’ & rollin’ in Tennessee. Trade Bitcoin, Ethereum, and other cryptocurrencies commission free.
With this announcement, Robinhood now offers zero-commission cryptocurrency trading to 24 states in the US. The company began its virtual currency trading in early 2018, servicing only four states. By mid-2018, Robinhood’s service reach had expanded to cover 17 states.
In addition to Arkansas, Rhode Island, and Tennessee, the company recently rolled out its trading services to Alaska and Oklahoma. The other states serviced by Robinhood include California, Florida, Texas, Virginia, and Massachusetts, among others.
Many states in the US have specific licensing requirements that must be met before companies can offer cryptocurrency trading services. Companies like Robinhood must follow the painstaking process of paperwork and permits which can sometimes hamper the pace of a service expansion drive.
Zero Commission Cryptocurrency Trading
Apart from expanding its geographical reach, Robinhood has also increased the number of cryptocurrencies on offer for trading on its platform. In August, the platform beat Coinbase to the punch by listing Ethereum Classic a day earlier than its rival.
Apart from Ethereum Classic, Robinhood offers Bitcoin, Ethereum, Bitcoin Cash, Dogecoin, and Litecoin trading. The platform also provides its traders with market data tracking for ten additional altcoins.
Recently, Robinhood’s zero commission cryptocurrency trading came in for some harsh criticism following revelations of how the platform earns revenue from customers’ orders. In September 2018, Logan Kane of Seeking Alpha published a report of an investigation into Robinhood’s business practices. According to Kane:
Not only does Robinhood accept payment for order flow, but on a back-of-the-envelope calculation, they appear to be selling their customers’ orders for over ten times as much as other brokers who engage in the practice. It’s a conflict of interest and is bad for you as a customer.
What do you think about Robinhood’s expansion to Arkansas, Rhode Island, and Tennessee? Which state(s) do you think the platform should add support for next? Let us know in the comments below.
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