Although stockbroops, banks and financial institutions also operate in Robinhood in commercial and brokerage activities, market manufacturers dominate, including cryptography.
This is what emerges of the last quarterly report Sent by the company to the SEC.
Robinhood is a US company. I know that it appears in the Stock Exchange, so it is legally obliged to submit periodic economic financing reports to the agency that supervises the bull and bass stock market in the United States.
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Robinhood Markets is a US financial services company founded in 2013 and based in Menlo Park, California.
It has been listed in Nasdaq since 2021 with the ticket HOODAnd recently his action has registered an excellent rally.
The company is mainly known for its free online trade application, where traditional and cryptographic assets can be exchanged.
It is mainly aimed at investors and retail speculators, especially young people, and is probably for this reason that Crypto has won traction on this platform.
The debut in the Stock Exchange occurred with a price of $ 38, which immediately shot at 85 the month following the list. However, that bubble exploded next month, and by the end of the year, the price had already fallen below the initial price.
During the Bear market of 2022/2023, the price of Hood’s shares collapsed below $ 7, but from December 2023, a rise began that effectively concluded only in February of this year. The 2025 peak was recorded just below $ 67, which is significantly higher than the current price, but lower than the historical maximum of four years ago.
Cryptocurrency creators in Robinhood
In the long quarterly report newly submitted to the SEC, and specifically in note 1 on page 11, data on the revenue concentrations of the first quarter of 2025 are informed.
What arises is that 63% of the company’s total income from January to March of this year come from the only market manufacturers. In addition, in the first quarter of last year, this percentage was 52%, so the last figure has also shown a strong increase compared to a year ago.
The main market manufacturers that generated income for Robinhood in the first quarter of 2025 were Citadel Securities and B2C2 USA, with 12% each, followed by winter contributions with 11%.
Cryptocurrency creators are entities or companies that provide liquidity to cryptocurrency markets. Its main role is to make sure that there are always buyers and vendors available for specific cryptography, facilitating transactions and making the market more efficient.
Technically, they operate in exchanges continuously placing purchase and sale requests for several cryptocurrencies, and earn by the difference between the purchase price and the sale price with the differential call. In fact, they buy at a slightly lower price and are sold at a slightly higher price, which obtains small profits in each transaction, but with a large number of automated transactions.
When making new purchase and sale orders consistently, they effectively provide liquidity to exchanges, in addition, they reduce the gap between the highest purchase price and the lowest sale price.
In this way, the other merchants, called market makers, can execute their orders faster and with less difference between the expected price and the real execution price (the so -called slip).
In fact, market manufacturers are essential for the proper functioning of cryptographic markets.
Robinhood’s income
Robinhood does not charge commissions in transactions, so it does not generate income from user commissions.
On the other hand, it uses the so -called orders for orders (PFOF), which consists precisely in directing users’ orders to market manufacturers, instead of directing them directly to exchanges. Therefore, it is market manufacturers who pay a small commission to the platform.
This is the reason why the majority of company’s income comes from market manufacturers and not users, although in reality, in the end, rates applied to market manufacturers are still paid in some way by customers through price differentials.
However, Robinhood also generates other types of income, such as interest balances of the client, or on margin and values ​​loans: it also offers several additional services paid and a debit card through which small commissions about its use earns.
