Trading fees on Robinhood | Robinhood

Trading fees on Robinhood

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

However, the following regulatory organizations charge Robinhood fees for trading that we do pass on to you to cover our costs:

Regulatory transaction fee

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 May 22, 2024, the SEC fee is $27.80 per $1 million 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.

Keep in mind

Option orders incur both the passthrough SEC fee and the FINRA trading activity fee (TAF) regardless of the sale order value.

Trading activity fee

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, 2024, the TAF is $0.000166 per share (equity sells) and $0.00279 per contract (options sells). This fee is rounded up to the nearest penny, which will be no greater than $8.30 per trade. Keep in mind, you may be charged more than the $8.30 fee because the fee limit is based on the execution of your order, which can occur with multiple trades.

Note

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 receipt fee

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.

Options regulatory and exchange fees

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.

Starting on or after October 23, 2023, we'll start collecting a combined $0.03 fee for each options contract traded to cover our costs for these fees.

Note

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.

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Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC).

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Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

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Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.
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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker dealer (member SIPC), and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC).

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Please review a list of our licenses for more information.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

RO 3846636

Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.