does robinhood have fees for stocks? Quick guide

Does Robinhood have fees for stocks?

Early answer: does robinhood have fees for stocks? Yes — Robinhood advertises $0 commissions for trading U.S.-listed stocks and ETFs, but that does not mean zero cost in all cases. Regulatory and exchange passthroughs, clearing and options-related fees, some security-specific charges, account service fees (like outgoing transfer or instant withdrawal fees), margin interest and subscription costs can still apply. This guide explains which fees are typically passed through, how they are applied, and how to find the most current, authoritative fee information.

As of June 2024, according to Robinhood's public fee disclosures and Help Center, the platform maintains commission-free trades for U.S. equities and ETFs while listing specific regulatory passthroughs and service fees. Independent coverage through mid-2024 (industry outlets and broker comparisons) confirms that many retail brokers use a similar model: zero commissions but with small external fees and differing execution practices.

Overview of Robinhood’s commission-free model

Robinhood’s core marketing and product promise is simple: no commissions on trades of U.S.-listed stocks and ETFs. The apparent benefit is lower explicit transaction costs for many retail investors, and the platform also supports fractional shares so small-dollar investors can build diversified positions.

In practice, when users ask "does robinhood have fees for stocks," they usually mean: "Will I pay a commission per trade?" For standard market or limit orders on U.S. stocks and ETFs, Robinhood does not charge a broker commission. That commission-free model typically covers the broker’s own per-order fee — the explicit charge you might expect from older brokerages.

However, commission-free does not automatically include everything. The model excludes certain third-party, regulatory, exchange or clearing fees that are set by external bodies or specific services provided on request. The remainder of this article details those exceptions so you understand what costs may appear on your statements.

Regulatory and exchange passthrough fees

A key reason customers still sometimes see charges is regulatory and exchange passthroughs. These are small fees set by regulators (such as the SEC or FINRA) or by exchanges and clearing organizations. They are not profit sources for Robinhood but are required by outside entities.

When answering "does robinhood have fees for stocks," it’s important to highlight that these passthroughs are the main category where fees are still possible even though commissions are $0.

Common examples include:

• SEC transaction fees — often assessed on sell transactions and collected by the Securities and Exchange Commission to fund its operations.
• FINRA Trading Activity Fee (TAF) — a per-share or per-trade charge that FINRA may collect and that brokers often pass to customers.
• Exchange assessment fees — tiny fees imposed by specific exchanges for routing or execution, sometimes passed to customers in certain order types.

These fees are typically low (often a few cents or fractions of a cent per share or contract), and they can change based on regulatory updates. As of June 2024, Robinhood’s Help Center and fee schedule list the categories of passthroughs that can apply and clarify that amounts follow regulator/exchange rules.

How and when regulatory fees are applied

Regulatory and exchange passthrough fees are commonly applied as follows:

• SEC fees: frequently applied on sell orders and calculated per dollar or per transaction, depending on the current SEC schedule.
• FINRA/TAF: often calculated per share on sell transactions with a cap for small orders; the exact rate and rounding rules are set by FINRA and reported by brokers.
• Options and per-contract regulatory fees: options trades may show small per-contract regulatory or clearing charges.

Because regulators set the formulas and rates, brokers update their schedules when official rates change. For this reason, the exact fee amounts you see for a given trade can vary over time.

Typical regulatory fees and caps (examples)

Below are representative items customers commonly see on statements. These are illustrative examples and not a live rate sheet — always check the official fee schedule for current numbers.

• SEC Section 31 fee: historically assessed on sale proceeds at a small rate (for example, a few thousandths of a percent). The actual rate fluctuates and is set by the SEC.
• FINRA Trading Activity Fee (TAF): historically a few cents per 100 shares with a cap per order in many brokers’ presentations; exact rounding and caps depend on the prevailing FINRA schedule.
• Options regulatory fees: often a few cents per contract, charged by options clearing or regulatory entities.

As of June 2024, Robinhood’s Help Center and user disclosures show these categories; industry reporting in 2023–2024 noted occasional rate adjustments from regulators that brokers promptly adopt. Because these amounts are small and variable, some users see zero line items on small trades while larger or frequent trades show tiny cumulative fees.

Options-, index- and OCC-related fees

If you trade options, index products or certain derivatives, expect to see additional small passthroughs. Clearing organizations such as the Options Clearing Corporation (OCC) impose fees that brokers may pass along.

Key points:

• Options trades: while Robinhood generally does not charge commissions on options, per-contract regulatory and clearing fees (OCC fees) may appear as per-contract passthroughs.
• Complex or multi-leg orders might trigger additional exchange or clearing assessments depending on routing and venue.
• Index-linked products and some structured securities can carry issuer or clearing fees that are separate from broker commissions.

When considering "does robinhood have fees for stocks" you should treat options and non-standard products as a different category where more third-party charges are typical.

Other transaction- or security-specific fees

Beyond regulatory and options clearing charges, certain securities have their own specialized costs. Common examples include:

• ADR custody fees: American Depositary Receipts (ADRs) sometimes carry small custody or servicing fees for the underlying foreign-listed securities. These are not Robinhood commissions but issuer/custodian assessments.
• OTC securities: trading over-the-counter or penny stocks may involve exchange or quoting fees not present for standard U.S.-listed stocks.
• Corporate action charges: rare administrative charges associated with certain corporate events can affect specific holdings.

These security-specific fees are relatively uncommon for everyday trades in mainstream U.S.-listed stocks and ETFs, but they can appear for international, ADR, OTC or unusual products.

Account, transfer, deposit and withdrawal fees

When you ask "does robinhood have fees for stocks," it’s also relevant to consider non-trading services that can cost money. These are not per-trade commissions but account or service charges.

Typical items include:

• Outgoing ACATS transfers (transfer-out fee): many brokers charge a fee for transferring an account to another brokerage. Robinhood has historically charged for full-account ACATS transfers, though the policy and amount can change.
• Partial transfers: some brokers charge more for partial transfers, or in some cases they do not charge partial-transfer fees — check the current schedule.
• Wire transfers: incoming wires are often free, but outgoing domestic or international wires may incur a fee.
• Instant transfers / instant withdrawals: Robinhood offers instant access to funds for a fee (usually a percentage of the transferred amount) or an instant-withdrawal charge; standard ACH deposits and withdrawals are generally free but can take several business days.
• Paper statements or overnight paper delivery: some brokers charge for expedited or paper statements; most electronic statements are free.

As of June 2024, Robinhood publicly lists which deposit and withdrawal options are free and which may carry fees; customers should confirm current amounts before initiating high-value transfers.

Margin, Robinhood Gold subscription, and borrowing costs

Margin borrowing introduces explicit costs that directly affect trade economics. If you use margin, you pay interest on borrowed funds. Robinhood’s premium subscription, Robinhood Gold, bundles margin-related features and research tools for a monthly fee.

Important elements:

• Margin interest: margin borrowing rates are set by the broker and typically tiered by borrowed balance. Interest accrues on borrowed amounts and is a real cost beyond trading commissions.
• Robinhood Gold: a subscription that provides benefits such as instant buying power, larger instant deposits, and research. Gold subscribers historically gained improved margin terms or additional features, but Gold is a paid monthly product.
• How these change economics: even if trades are commission-free, paying margin interest or a subscription fee can raise your effective cost of trading or holding positions.

When evaluating whether "does robinhood have fees for stocks," include margin interest and subscription costs in your total cost calculations if you rely on margin or premium features.

Hidden or indirect costs (execution quality, spreads, PFOF)

Some costs are indirect and not labeled as explicit fees yet affect net execution price:

• Payment for Order Flow (PFOF): Robinhood and many retail brokers accept PFOF from market makers who route retail order flow to them. PFOF helps support commission-free pricing but has been scrutinized because it can create potential conflicts of interest. The effect of PFOF on execution quality varies: some orders may receive price improvement, others may have slightly worse execution against NBBO.
• Bid/ask spreads: for thinly traded stocks, the spread between bid and ask can be wider. When you buy at the ask and later sell at the bid, that spread is an implicit cost.
• Routing and execution venue effects: order routing choices influence execution speed and price. Brokers publish execution quality reports; comparing those helps understand practical costs beyond commissions.

Thus, even though the headline answer to "does robinhood have fees for stocks" may be that commissions are $0, you should factor in these indirect sources of cost when assessing true transaction economics.

Examples and worked illustrations

Example 1 — Small stock sale with regulatory fee:

• You sell 100 shares of a U.S. stock at $10.00 per share for gross proceeds of $1,000.00.
• Regulatory passthroughs: the SEC fee and FINRA TAF might total a few cents to a few dollars depending on the current rates and rounding rules.
• Result: your net proceeds will be the sale amount minus any regulatory passthroughs. There is no Robinhood commission in this example.

Example 2 — Options trade with per-contract charges:

• You buy 2 contracts of a call option at $0.50 per contract. Premium paid is $100 (2 contracts × 100 shares × $0.50).
• Clearing/regulatory per-contract fees: a small per-contract charge (for example, a few cents per contract) may be passed through on the trade.
• Result: total cost = premium + small per-contract passthrough(s). No per-contract commission from Robinhood beyond the passthroughs.

Example 3 — Instant withdrawal fee:

• You request an instant transfer of $500 to your debit card and Robinhood charges a percentage fee (e.g., 0.25%–1% historically for some instant services).
• Fee amount = $500 × fee rate (e.g., 0.5% = $2.50). Standard ACH withdrawal would typically be free but slower.

These worked examples use illustrative, rounded numbers. Actual fees and rates change with regulatory updates and platform policy changes.

How Robinhood’s fees compare to other brokers

Many major brokers have adopted $0 commission pricing for U.S. stocks and ETFs, making direct commission differences less relevant for casual investors. The meaningful differences across brokers typically include:

• Transfer and account service fees (outgoing ACATS fees, wire fees).
• Margin interest rates and how margin tiers are structured.
• Premium subscription products and what they include.
• Execution quality and payment-for-order-flow practices.

When evaluating whether "does robinhood have fees for stocks," compare the whole-cost picture: regulatory passthroughs (which are often similar across brokers), margin and subscription costs, transfer and withdrawal fees, and execution reports.

Note: if you are considering another trading platform, we also recommend exploring Bitget as an alternative for users interested in a platform that supports a broader set of crypto and derivatives products; for Web3 wallet needs, Bitget Wallet is available as a recommended option for managing on-chain assets and bridging between centralized and decentralized activity.

How to find current, authoritative fee information

Fees and regulatory rates change. Always check Robinhood’s official documentation before you trade or move funds. The most authoritative sources are:

• Robinhood’s official Fee Schedule and Help Center (published and updated by Robinhood).
• Robinhood’s account disclosures and margin agreement for details about borrowing rates.
• Broker execution quality reports which show route-level execution statistics.

As of June 2024, Robinhood’s Help Center and fee schedule are the primary sources for current regulatory passthroughs and service fees. Independent financial outlets and broker comparison sites provide useful context but are secondary to Robinhood’s official disclosures.

Frequently asked questions (Q&A)

Q: Are stock trades completely free on Robinhood?

A: Commission-free for U.S.-listed stocks and ETFs generally means Robinhood does not charge a broker commission on standard trades. However, regulatory/exchange passthroughs, options clearing fees, certain security-specific charges, account service fees (e.g., transfer-out, instant withdrawal), margin interest and subscription costs can still apply.

Q: Do I pay SEC or FINRA fees on buys?

A: Regulatory fees are commonly associated with sell transactions, though the exact application depends on the specific fee. Check Robinhood’s fee schedule for the most current policy. As of June 2024, Robinhood lists the categories typically passed through and notes that some fees are assessed on sells.

Q: How to avoid transfer-out fees?

A: Many brokers charge an outgoing ACATS transfer fee for moving your account to another broker. Some brokers offer partial transfers or promotions to offset fees; check Robinhood’s current fee schedule and contact support for options. If avoiding transfer fees is a priority, compare account transfer policies before opening an account.

Q: Does Robinhood charge for fractional shares?

A: Robinhood offers fractional shares trading with $0 commissions on U.S. stocks and ETFs, but regulatory passthroughs and certain service charges (instant withdrawals, transfers) may still apply. Fractions themselves do not carry a commission fee.

Q: Is payment for order flow a fee I pay directly?

A: PFOF is not a direct fee charged to you in your statement; it is a revenue source for brokers from market makers. While it funds commission-free trading, it is debated how PFOF affects execution quality — check execution quality reports for transparency.

Sources, reporting dates and context

• As of June 2024, Robinhood Support and Robinhood’s Fee Schedule list commission-free trading for U.S. equities and the categories of regulatory and service passthroughs that can apply (Robinhood Support, Robinhood Fee Schedule).
• As of May–June 2024, industry outlets and broker comparison sites reported that most major retail brokers offer $0 commissions for U.S. stocks and ETFs but differ on margin rates, transfer fees and order routing (selected industry coverage and analysis).

Sources consulted for context and reporting: Robinhood Support (Trading fees on Robinhood; Robinhood Fee Schedule), and independent analyses from consumer finance and broker review outlets as of mid-2024.

Note: the exact effective rates and whether a fee is applied to a particular transaction change over time. Refer to Robinhood’s official disclosures for the most current, binding terms.

Practical checklist before you trade

• Review Robinhood’s current Fee Schedule in the app or Help Center.
• Check whether you will use margin or the Robinhood Gold subscription and understand the costs.
• For transfers, confirm whether an outgoing transfer fee applies and whether partial transfers are possible.
• If you trade options, check the per-contract regulatory and clearing charges that may appear.
• For large or frequent trades, consider how regulatory passthroughs and execution quality affect net cost.

Further exploration: If you are evaluating platforms for both spot and derivatives trading, consider exploring Bitget’s product pages and Bitget Wallet for integrated solutions spanning centralized trading and on-chain access.

Final notes and next steps

Understanding whether "does robinhood have fees for stocks" requires looking beyond the headline "$0 commission". For most retail traders, many routine stock and ETF trades will carry no broker commission, but regulatory passthroughs, options clearing fees, account-service fees, margin interest and indirect execution costs can affect your net cost.

Before making trading decisions or moving assets, check Robinhood’s official, up-to-date Fee Schedule and Help Center disclosures. If you want a platform that integrates centralized trading with on-chain wallets and offers alternative product sets, explore Bitget and Bitget Wallet to see whether their fee structures and features better fit your use case.

Learn more about trading costs and platform differences and decide based on up-to-date fee disclosures, your typical trade size, frequency and use of margin or options.

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References and primary sources (for verification):

• Robinhood Support — Trading fees and official Fee Schedule (official disclosures). As of June 2024, these are the primary sources for current passthrough and service fees.
• Independent industry coverage and broker comparisons across mid-2023 to mid-2024 for context on how commission-free models evolved among retail brokers (consumer finance and broker review outlets).

(Reporting dates: As of June 2024 for Robinhood official disclosures; industry coverage cited spans mid-2023 to mid-2024.)

If you want a walkthrough comparing total costs across platforms for your typical trade size (including regulatory passthroughs and margin), I can create a side-by-side cost illustration or a downloadable checklist to help you compare — or summarize how Bitget’s fee model approaches similar scenarios.