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A comment on Robinhood raises $323M at a $7.6B valuation. Parent comment

Re:Robinhood raises $323M at a $7.6B valuation by AznHisoka on Monday July 22, 2019 @02:32PM (#20500837)
Can't you say the same thing about everyone using any other retail brokerage?
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Re:Robinhood raises $323M at a $7.6B valuation by QuackingJimbo on Monday July 22, 2019 @02:40PM (#20500924)
No. Upstanding retail brokerages (such as Interactive Brokers) don’t make interest on their customers’ balances.
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Re:Robinhood raises $323M at a $7.6B valuation by usmannk on Monday July 22, 2019 @02:46PM (#20500999)
Woah that is totally untrue. Brokerages make a lot of money by investing your balance. In particular, IB makes 49% of its revenue this way.

https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...

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Re:Robinhood raises $323M at a $7.6B valuation by Youden on Monday July 22, 2019 @03:30PM (#20501461)
To add an even clearer source to the other replies: https://www.interactivebrokers.com/en/index.php?f=1595

IB is abundantly clear that it makes money from cash balances. I'm not sure where you got this idea from.

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Re:Robinhood raises $323M at a $7.6B valuation by notyourday on Monday July 22, 2019 @02:45PM (#20500979)
Huh? That's just not how this works. There's always a spread between the cash interest that the custodial firm gets on the balances it holds and the interest it pays to the customers.
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Re:Robinhood raises $323M at a $7.6B valuation by benj111 on Monday July 22, 2019 @02:48PM (#20501027)
Interactive Brokers makes 49% of revenues from customer balances.

https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone...

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