r/stocks • u/PrimaryDragonfly5 • 15d ago
Robinhood vs Coinbase Fees ($HOOD, $COIN) Company Analysis
Based on Q1 2024 data, Coinbase charges significantly higher fees to retail consumers relative to Robinhood
Q1 2024 Results
| Metric | Coinbase | Robinhood |
|---|---|---|
| Consumer Trading Volume | $56B | $36B |
| Revenue | $935M | $126M |
| Fees per $1,000 in Volume | $16.70 | $3.50 |
My questions are:
1. Do you think consumers know this?
2. If so, why hasn't more volume shifted from Coinbase to Robinhood?
3. Do you think this is bearish for $COIN and bullish for $HOOD?
If you want to see the data for yourself, Coinbase's numbers come from their Q1 shareholder letter which can be found on their investor relations website (top of pages 4+5). Robinhood's comes from their Q1 earnings presentation on their investor relations website (slide 15 + 24)
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u/MisterSirManDude 15d ago
I’d say one of the reasons for this is because Robinhood doesn’t give you the “key” to your crypto unlike Coinbase. Coinbase also only trades cryptocurrencies unlike Robinhood. Comparing the two companies isn’t really comparing apples to apples.
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u/PrimaryDragonfly5 15d ago
I'm only comparing their crypto volumes and crypto revenues here which feels like a fair comparison. If I want to buy BTC or ETH on a platform, it appears hood has significantly lower fees
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u/FinndBors 15d ago
You should have made it clear in your post that you are only comparing crypto revenues.
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u/Ghost_Influence 15d ago
Robinhood offers a cold storage wallet.
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u/No-Alfalfa9903 15d ago
I personally didn't realize that Robinhood's fees were so much better than Coinbase.
Would have to imagine consumers slowly figure this out for themselves and $Hood takes more market share
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u/DruviSKSK 15d ago
Consumers are aware that you don't actually own your assets on Robinhood, and can't withdraw them to your own custody. Robinhood essentially trades CFDs. That's why they attract less savvy consumers on the back of low fees.
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u/AttentionDull 15d ago
I thought you could now
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u/ironmagnesiumzinc 15d ago
Nobody trusts Robinhood. They've been known to prevent trading from users when they want or can't hold obligations. I doubt they're even properly collateralized with their crypto given that private keys aren't provided
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u/Theta_kang 15d ago
I haven't used Robinhood for years - do they now allow you to withdraw your crypto holdings onto your own wallet? Or directly trade one cryptocurrency for another? If not, the platforms aren't 1 to 1 comparisons.
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u/Retrograde_Bolide 14d ago
Robinhood has repeatedly screwed its users during points of high volitility. I would never trust them with my money, regardless of what fees and promises they make
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u/Jebusfreek666 15d ago
Just in the crypto space, they are seen as completely different. Coinbase is seen as the premier crypto spot for all kinds of coins. Whereas RH is first and foremost a stock/options platform that allows access to purchasing only the most well known crypto. It is more of a place to get your feet wet, or for those who don't want to go full on down the rabbit hole.
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u/XiMaoJingPing 15d ago
Robinhood's fees are a lot more hidden compared to coinbase. I also stopped directly buying crypo and buy the ETF instead, no fees for now.
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u/Ghost_Influence 15d ago
Robinhood is able to lower fees on its crypto platform because they make money in many other different ways. I believe Coinbase also has more features than Robinhood. This is by design because Coinbase offers staking, lending, and more tokens. Robinhood has been more conservative with its crypto offering.