Robinhood’s default crypto trading route came under criticism after Delphi Digital co-founder Tommy Shaughnessy posted on X that the spread looked too wide. In the screenshot he shared, the Bitcoin round-trip spread was 1.87%, which he said was close to “criminal” for an asset of that scale. Robinhood Crypto Senior Vice President and General Manager Johann Kerbrat responded that users also have access to a second option called Smart Exchange Routing, where fees range from 0% to 0.95% and decline as a trader’s 30-day volume rises. Kerbrat also said customers do not need to sell tokens before withdrawing them to an external wallet. According to the details cited in the report, Robinhood’s default market maker routing sends crypto orders to outside trading firms rather than exchanges. Robinhood Crypto receives $0.95 for every $100 in volume it processes, with that cost embedded in quoted prices, pushing the cost of a full buy-and-sell transaction to nearly 2% before any market move.
Techub News reported that Delphi Digital co-founder Tommy Shaughnessy questioned the pricing on Robinhood’s default crypto trading route in a post on X.
A screenshot he shared showed a 1.87% Bitcoin buy-sell spread. Shaughnessy said that for an asset of that scale, that level of slippage was close to “criminal.”
Robinhood Crypto Senior Vice President and General Manager Johann Kerbrat replied that there is a second option called Smart Exchange Routing. He said fees on that route range from 0% to 0.95% and fall as a trader’s 30-day volume increases.
Kerbrat also said customers do not need to sell their tokens in order to withdraw them to an external wallet.
Under Robinhood’s default market maker routing, crypto orders are sent to external trading firms instead of exchanges, according to the report. Robinhood Crypto receives $0.95 for every $100 of trading volume it processes. That cost is embedded in quoted prices, bringing the cost of a full round-trip trade to nearly 2% before any market price change.
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