Trading fees on Robinhood
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, the following regulatory organizations charge Robinhood fees for trading that we do pass on to you to cover our costs:
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 the 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.
As of February 27, 2023, the SEC fee is $8 per $1,000,000 of principal (only for sell orders), which is rounded up to the nearest penny. Robinhood doesn’t pass this fee on to you for sales with a notional value of $500 or less.
Option orders incur both the passthrough SEC fee and the FINRA trading activity fee (TAF) regardless of the sale order value.
FINRA charges this fee to brokerage firms like Robinhood to recover the costs of supervising and regulating these firms. We pass this fee to our customers, except for sales of 50 shares or less.
As of January 1, 2023, the TAF is $0.000145 per share (equity sells) and $0.00244 per contract (options sells). This fee is rounded up to the nearest penny, which will be no greater than $7.27 per trade. Keep in mind, you may be charged more than the $7.27 fee because the fee limit is based on the execution of your order, which can occur with multiple trades.
The SEC fee and the TAF are set by law and regulation that are subject to change without notice. Review our fee schedule before placing trades in your account.
American depositary receipts (ADRs) are certificates that represent foreign stocks that you can trade on U.S. stock markets. The banks issuing these certificates may charge custodial fees that typically range from $0.01-$0.03 per share.
The Options Clearing Corporation (OCC) collects an Options Regulatory fee (ORF) that the U.S. options exchanges assess their members in connection with options transactions.
The ORF varies by options exchange, where an options trade executes, and whether the broker who’s responsible for the trade is a member of a particular exchange.
The OCC also charges a clearing fee for their central counterparty clearing and settlement services to 16 exchanges.
These fees are industry standard. The purpose of these fees is to recover a portion of the costs related to the OCC’s supervision and regulation of the options markets.
On September 21, 2023, we started collecting a combined $0.03 fee for each options contract traded to cover our costs for these fees.
Robinhood calculated the combined fee based on an average of what we typically remit to the exchanges. The fee charged by Robinhood may differ from or exceed the actual fee we paid in connection with any transaction. Our fee schedule has more details about these fees.