Trading Fees on Robinhood
There’s no commission when investing with a Robinhood brokerage 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. 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.
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.
As of January 1, 2023, the Trading Activity Fee is $0.000145 per share (equity sells) and $0.00244 per contract (options sells). This fee is rounded up to the nearest penny and no greater than $7.27. You may be charged a fee of more than $7.27 because the limit on this fee is based on the execution of your order, which can occur in multiple parts.
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.
The Regulatory Trading Fee and the Trading Activity Fee are set by law and regulation, and are subject to change without notice. Check the current posted Fee Schedule before placing trades in your account.