Rick Yang: Incumbent brokerages derived only 25% to 33% of revenue from trading fees
Rick Yang · 20VC: The Robinhood Memo: The Early Metrics That Showed Robinhood was a Breakout Company, The Cost Structure of Robinhood in the Early Days and Why it is a More Efficient Business than eTrade & How Vlad Has Developed as a Leader Over Time with Rick Yang a · Jan 28, 2022 · at 10:00
Rick Yang, partner at venture firm NEA, details NEA's market analysis of incumbent brokerage cost and revenue structures prior to investing in Robinhood.
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“You look at the incumbents and only about a quarter to a third of their top line revenue really came from these trading fees.”
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