Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Beyond Meat has blown up. The plant-based meat company is now larger than 80 S&P 500 companies, including Macy's, Xerox and Mylan.Trading Nationread more
More and more American firms are calling for the Trump administration to resolve its conflict with China.World Economyread more
Employees spoke out on issues such as forced arbitration, workplace equity and Project Dragonfly at Alphabet's annual shareholder meeting.Technologyread more
American Airlines is the first major U.S. airline to order Airbus' new long-range, single aisle aircraft.Paris Air Showread more
This is a comparison of Wednesday's FOMC statement with the one issued on May 1 after the Fed's previous policy-making meeting.The Fedread more
Federal Reserve Chairman Jerome Powell said on Wednesday that Facebook spoke to the central bank about the digital currency called LibraThe Fedread more
Federal Reserve Chairman Jerome Powell said the case for a rate cut at central bank's Wednesday meeting is not strong enough.The Fedread more
Money for nothing and your trades for free?
That's the business plan behind Robinhood, a new app that allows users to buy and sell stocks with $0 commission—yet founders Vlad Tenev and Baiju Bhatt aren't aiming to be in the charity business.
"So, Robinhood has many revenue streams on Day One. Those include margin lending, payment for order flow, interest on cash balances. We'll have those on Day One," Tenev said on CNBC's "Halftime Report. "
"And in the near future, we'll also have some other monetization strategies that current brokerages aren't using, including API access and premium features for active investors. An important thing to note is that Robinhood isn't focused on profits right now. We're focused on building an awesome user experience. That being said, we have these standard monetization revenue streams, and more to come, in the future as we roll out."
The start-up brokerage has received $3 million in seed funding and is backed by Google Ventures, Andreessen Horowitz, Index Ventures, Rothenberg Ventures, Tim Draper and Howard Lindzon's Social Leverage, according to the company's website.
Other brokerages with strong online and mobile presences, such as ScottTrade, E-Trade and Schwab, charge $7 to $9.99 per trade with minimum deposits between $500 and $1,000.
Bhatt said that since Robinhood announced its plan in December, more than 150,000 people have joined the waiting list to use the company's no-commission, no-minimum trading platform
The first wave of users would be able to trade beginning Thursday, he said.
"The idea with the waiting list is basically so we can control the rate at which we onboard new customer accounts," he said. "And so we want to basically make sure that—every day that we're onboarding a new wave of customers—that all the systems that we connect to can handle it."
So, why the Robinhood moniker?
"Robinhood is not about 'taking from the rich and giving to the poor.' Instead, it's about allowing everyone to fully share in the fruits of capitalism," its website states. "The name is our way of challenging the status quo. For most of history, institutional investors have had advantages that were unavailable to most individuals. We're changing that with Robinhood."