Robinhood Joins the Online Cash War
Robinhood Markets Inc. said it would offer a new higher-yielding cash account, in a bid to grow from its commission-free trading roots as bigger rivals scrap trading fees.
The brokerage said Tuesday it would offer 2.05% annually on uninvested cash in customers’ brokerage accounts, through partner banks, making it the latest fintech to use higher yields on cash to try to win business.
Robinhood’s move comes after Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Inc. last week said they would eliminate commissions for online stock trades—replicating the fee-free trading pitch that has helped Robinhood amass about 6 millions users since it was founded in 2012.
Reported by WSJ