Robinhood has announced that it will be launched in Ohio, which makes this the twenty-fifth state where the trading app is available.
In its latest tweet, the trading start-up stated that citizens of Ohio will be able to trade in different Cryptocurrencies without paying any commission on the Robinhood app. Among the Cryptocurrencies which users will be able to trade include Bitcoin, Litecoin, Ethereum, Bitcoin Cash, Dogecoin and Ethereum Classic.
At the beginning of this month, Robinhood launched in two different states these being Rhode Island and Arkansas. It then launched in Oklahoma towards the end of September. Prior to expanding into the aforementioned three states, Robinhood had launched in the state of Alaska.
Some of the states which are already benefitting from the commission-free trading offered by Robinhood are Arizona, Florida, California, Colorado, Indiana, Georgia, Massachusetts, Mississippi, Montana, Iowa, Michigan, Missouri, Texas, Wisconsin, Pennsylvania, New Jersey, Utah, Virginia and New Mexico.
Reduced Charges on Bank Reversals
This move to Ohio comes at a time when the trading start-up had just announced that it will be launching its own clearing system which it has been developing for the past two years.
Before it decided to develop its own clearing system Robinhood had been relying on third-party providers. According to the trading start-up which currently has over six million users on its platform, the development of its own independent clearing system was made possible by the efforts of a dedicated team of almost a hundred people. This project necessitated that the firm gets licenses from the OCC (Office of the Comptroller of the Currency), FINRA (Financial Industry Regulatory Authority) as well as the DTCC (Depository Trust & Clearing Corporation).
With the firm having developed its own clearing system, this will allow it to reduce some of its fees including bank reversal fees. Before when it was outsourcing clearing services the firm used to charge a fee of US$30, however, this will now be reduced to US$9. On its blog post, the firm stated that its new clearing system has allowed it to only pass on the fees that the banks charge and in this way, users will only be paying for the actual cost and not a penny more.
May Be Offering Banking Services In The Near Future
With the firm currently receiving a valuation of just over US$5.6 billion, mainly due to a recent funding, it has stated that with its own clearing system in place it will be possible to come up with new financial services for the market. Although the trading start-up did not go into details about the kind of financial services it hopes to introduce to the market, it had been previously reported that it had met with regulators seeking to be issued with a national banking charter.
This would not be a completely inconceivable idea seeing as the firm already offers lending services with its FAQ page stating that it gets revenue not only from its trading services but also from the revenue it collects from the interest generated from customer accounts.