Robinhood generates money from multiple sources, primarily through rebates from market makers. When you place a trade on the platform, they are sent to a market maker to execute it. These makers often offer better prices than exchanges and, in turn, offer rebates to brokerages for choosing them. Think of a market maker as an entity that completes the trade for you. These makers compete and offer reasonable rates for varying trades, and in exchange, pay a little commission to the brokerage for bringing them business. This concept allows commission-free brokerage platforms like Robinhood to enable you to trade without paying. Other ways Robinhood makes money is through its premium services, Robinhood Gold, and lending out money to traders through margin trade.