Trading Fees on Robinhood
Investing with Robinhood is commission-free, now and forever. 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 fee is $22.10 per $1,000,000 of principal (sells only) and is rounded up to the nearest penny.
FINRA charges this fee to brokerage firms to recover the costs of supervising and regulating these firms. Robinhood passes this fee to our customers.
The fee is $0.000119 per share (equity sells) and $0.002 per share (options sells). This fee is rounded up to the nearest penny and no greater than $5.95.
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.
Because Robinhood rounds regulatory transaction fees and trading activity fees to the nearest penny, it may thereby collect more of these fees than it ultimately remits to FINRA. Keep in mind other fees may apply to your brokerage account. Feel free to check out our full fee schedule.