Robinhood has added another highly anticipated feature to its commission-free trading platform.
The disruptive brokerage app this week launched commission-free, multileg options trading on its platform.
Since launching free options trading in December, Robinhood said it has done $2 billion in premium options transaction volume, making it one of the largest options trading platforms. Multileg trading was the most requested feature and will give users more control over users investments, according to Robinhood.
Why It Matters
“The business can get pretty big and we are really happy with the growth numbers so far,” Chris O’Neil, product manager for Robinhood Options, told Benzinga.
“Users are saving a lot. Options trade at a much higher commission than equities, so people are saving a lot more on options than they are on equities.”
Traditional brokerages make the bulk of their commissions on options, O'Neil said, alluding to how Robinhood can further disrupt the industry and force competitors to lower commissions.
“Discover adds a lot of information on what to expect when trading options," O'Neil said, including graphics that detail the costs and payouts.
“We want to be the only place [where] it makes sense to trade options.”
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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