SPDR S&P 500 ETF (SPY) — Buy and sell commission-free on Robinhood (2024)

FAQs

Does Robinhood charge commission on ETFs? ›

Like most investment platforms today, Robinhood and Fidelity offer commission-free stock and ETF trading.

Robinhood pioneered commission-free trading, and they made money from interest, margin lending, fees for upgraded services, rehypothecation, and payment for order flow.

Robinhood gives you the tools you need to put your money in motion. You can buy or sell SPY and other ETFs, options, and stocks.

Investing with a Robinhood investing account is commission free. We don't charge you fees to open or maintain your account.

ETFs don't often have large fees that are associated with some mutual funds. But because ETFs are traded like stocks, you may pay a commission to buy and sell them, although there are commission-free ETFs in the market. To be fair, mutual funds do offer a low cost alternative: the no-load fund.

A no-fee ETF is generally used to attract potential investors to move their accounts to a new broker. Brokers offer to complete these trades for free in the hope of attracting new clients, who will also conduct more profitable trades with the same broker.

Robinhood doesn't charge commission fees to trade stocks, options or crypto.

$0.000166 per share (equity sells) and $0.00279 per contract (options sells). This fee is rounded up to the nearest penny and no greater than $8.30. statement or confirm is generated. Out-of-network ATM Providers may charge a fee, which Robinhood Financial will not reimburse.

After you complete a full ACATS transfer, we'll put your account on hold. We charge a $100 fee for a partial or full ACATS out of Robinhood. Currently, fractional security shares with RHF and crypto held with RHC aren't transferable to other brokerages.

The easiest way to invest in the S&P 500

An S&P 500 index fund or ETF is the simplest way to invest in the index. These funds aim to replicate the returns of the S&P 500 by tracking it, offering investors exposure to S&P 500 companies without the effort involved in purchasing the individual stock of each company.

Is VOO better than Spy? ›

SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 19.87% year-to-date (YTD) with -$29.77B in YTD flows. VOO performs worse with 19.77% YTD performance, and +$64.83B in YTD flows.

SPY is the ticker symbol for an exchange-traded fund that tracks the performance of the S&P 500 index; it is traded like a stock. SPX is simply the numerical value that represents the level of the S&P 500 index and is not directly tradable.

How Much Does It Cost to Trade Options on Robinhood? Unlike some brokers, options trading, like stock trading, can be done without commissions on Robinhood. There are some fees that users pay as part of their transactions, including a trading activity fee and a regulatory trading fee.

Defining a day trade

You buy and sell the same stock or ETP (or open and close the same position) within a single trading day. You open and close the same options contracts within a single trading day.

Determine Your Taxes

Short term gains, those securities held for less than one year, are taxed at the same rate as your income. Long term gains, those securities held for more than one year, are taxed at either 0%, 15%, or 20%, depending on your income tax rate.

You'll typically pay a commission each time you buy or sell an ETF—but not always. Keep in mind, the smaller your investment and the more frequently you trade, the more impact these commissions will have on your bottom line.

Sign up for a Robinhood brokerage account to buy or sell VOO stock and options commission-free.

ETFs allow you to invest in a group of companies all at once. When you invest in an ETF, the value of your investment will depend on how the collective group of companies is doing. You can buy or sell ETFs just as you would a stock.

Brokerage houses may charge a commission for ETF trades just as they charge for any other market-traded security. These fees are typically around $20 per trade or less but they can add up over time if the investor trades ETFs often.