Robinhood was fined $65 million by the SEC for misleading customers on how they make their money. They have since been more forthcoming with how they earn revenue and disclosure of fees.
Robinhood routes its users’ orders through a market maker who makes the trades and compensates Robinhood for the business at a rate of a fraction of a cent per share.
Robinhood’s premium service, known as Robinhood Gold, offers subscribers access to research reports, market data, larger instant deposits, and margin trading.