Comment by Sohcahtoa82

They take a loss from every transaction and make up for it with volume. /s

My guess is that since Robinhood Gold gives you a lower margin interest rate, enticing people to use more margin, they hope to reap all the money back and then some.

Since the rebate money goes directly into your Robinhood account, rather than a checking account, they encourage it to stay in Robinhood.