Investing with a Robinhood brokerage account is commission-free. We don’t charge you fees to open your account, to maintain your account, or to transfer funds to your account.
However, self-regulatory organizations (SROs) such as the Financial Industry Regulatory Authority (FINRA) charge us a small fee for sell orders. They charge these fees for all sell orders, regardless of the brokerage. Robinhood passes these fees to our customers and remits them to the applicable SROs.
FINRA is required to pay this fee to the Securities and Exchange Commission (SEC) by law. To generate the funds necessary to do so, FINRA passes the fee on to its members, and many of these members, including Robinhood, pass the fee on to customers. The fee is ultimately intended to cover the costs incurred by the government, including the SEC, for supervising and regulating the securities markets and securities professionals. The rate is subject to annual and mid-year adjustments.
The SEC fee is $22.90 per $1,000,000 of principal (sells only) and is rounded up to the nearest penny. Robinhood does not pass this fee on to customers for sales with a notional value of $500 or less.
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Trading Activity Fee
Trading Activity Fee
FINRA charges this fee to brokerage firms to recover the costs of supervising and regulating these firms. Robinhood passes this fee to our customers, except for sales of 50 shares or less.
The Trading Activity Fee is $0.000130 per share (equity sells) and $0.00218 per contract (options sells). This fee is rounded up to the nearest penny and no greater than $6.49. You may be charged a fee of more than $6.49 because the limit on this fee is based on the execution of your order, which can occur in multiple parts.
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American Depositary Receipt (ADR) Fees
American Depositary Receipt (ADR) Fees
American Depositary Receipts (ADRs) are certificates that represent foreign stocks and can trade on American exchanges. The banks issuing these certificates may charge custodial fees that typically range from $0.01-$0.03 per share.
Note
The Regulatory Trading Fee and the Trading Activity Fee are set by law and regulation, and are subject to change without notice. Please check the current posted Fee Schedule before placing trades in your account.
Investing with a Robinhood brokerage account is commission-free. We don't charge you fees to open your account, to maintain your account, or to transfer funds to your account. However, self-regulatory organizations (SROs) such as the Financial Industry Regulatory Authority (FINRA) charge us a small fee for sell orders.
Robinhood markets itself as a "free" app because users can set up a free account with no minimum investment. Users won't pay annual fees, inactivity fees, ACH transfer fees, commission fees, and other costs common to some other brokerage firms.
Bank account: No fee for withdrawals. External debit card account: Withdrawals have a 1.5% fee based on the amount being transferred out. You'll see the calculated fee when you initiate the withdrawal, so you'll know the amount up front.
How does Robinhood make money? Robinhood makes money in a number of ways, notably through a system known as payment for order flow. That is, Robinhood routes its users' orders through a market maker who actually makes the trades and compensates Robinhood for the business at a rate of a fraction of a cent per share.
Fees. One advantage Robinhood has over Coinbase is the cost to purchase cryptocurrencies. On Robinhood, it's free. You can buy and sell crypto as frequently as you want with no fees whatsoever (and pattern day trading rules that exist for stocks don't currently exist for crypto).
Absolutely! As long as you abide by the FINRA regulations for pattern day trading, then you can trade to your heart's content with Robinhood's zero-commission trading policy. Robinhood allows users to day trade stocks, ETFs, stock options contracts, and even cryptocurrencies with no trading fees.
Robinhood may have an easier, quicker sign-up process, and its user experience is definitely built for a mobile-first generation, but Fidelity has several offerings you won't find at Robinhood: expense-ratio-free index funds, strong customer service and a large selection of research providers.
However, Coinbase fees can take a chunk out of your investment, whereas Robinhood doesn't charge a commission, so users may pay less per trade. People who don't want to withdraw crypto and prefer a single platform to trade crypto, ETF, stock, and options use Robinhood because you can only trade crypto on Coinbase.
Inactive account fees: There are no fees involved with any sort of inactivity in your brokerage account. Foreign transaction fees: Robinhood does not charge fees for using your debit card abroad.
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