Worried About Robinhood? This Broker's Stock Is a Better Buy

When Robinhood (NASDAQ: HOOD) came to the public markets in July 2021, it was one of the most anticipated IPOs of the year. Shares closed at $70.39 just a few days after the IPO, an 85% increase. It's been a steady decline for the share price since then, and the most recent quarter's results haven't helped. For investors who may have been considering buying shares of Robinhood, it's worth looking instead at Charles Schwab (NYSE: SCHW) for an online broker that has provided better results for shareholders.

Image source: Getty Images

Before diving into the last quarter's results, it's important to understand how Robinhood makes its money. The bulk of Robinhood's revenue comes from what it calls transaction-based revenue, but it's more commonly known as payment for order flow.

Source Fool.com