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Why can Robin Hood offer trading without commissions?
It isn't the first initiative (see link below) and maybe this one will stick around.  Time will be a good test.   Here is an article on it.... http://www.investopedia.com/articles/active-trading/020515/how-robinhood-makes-money.asp  They plan to make money off unused balances - so they hope to get the masses signed up using the 0$ fees.  Also, no type of advanced trading, just limit and market orders.   Think of it this way - even if someone puts in 100$ and buys a stock at 88$...that 12$ sits there.  Multiply that by say....200,000 accounts and then do a basic 3% return on that.   Also, they plan for margin accounts in the future.   Time will tell....  sort of like I use Acorn right now (but it charges a fee to invest - a slightly higher than normal one). I signed up for fun and am just letting it ride.