Robinhood fee schedule. How much does Robinhood charge for stocks and crypto trading, regulatory fees? Does Rrobinhood have hidden fees in 2023?

Robinhood Fees

Since 2015, Robinhood has taken the investing world by storm; introducing a sleek, easy to use platform that can process high-volume trades at lightning speeds. Its distinctive green/white colorway, paired with its smooth and simple interface, helped turn the brand into a household name in a short amount of time. The mobile app has amassed over 22.9 million users, many being first-time investors.

It is important that both new and existing users of Robinhood familiarize themselves with the potential fees associated with the brokerage. While the firm boasts its commission-free investing, it still charges fees for certain transactions. These hidden fees have led to confusion and frustration among Robinhood users, who often do not realize that they are paying extra costs beyond the commission-free trades.

In this article, we will explore all of the fees Robinhood may charge for use of their platform, the reasoning behind them, and - if possible - how to avoid them.

Before we examine the transactions that Robinhood may charge fees for, let’s review what features they offer for free. In addition to commission-free trading, opening a Robinhood account is free, and the platform doesn’t charge an account management fee.

Robinhood also does not charge fees for transferring funds into the brokerage, or for withdrawals to a bank account. Furthermore, there is no minimum account balance requirement on the platform or any fees for account inactivity. These are the features that have helped amplify the popularity of mobile trading with startup brokerages, shifting the attention of new investors away from larger institutions that may charge pesky account fees.

Robinhood Trading Fees

Robinhood users are required to pay a pair of miniscule fees whenever they sell a stock. This isn’t something Robinhood profits from - a few third-party regulatory institutions charge small fees for selling positions, regardless of which brokerage the transaction takes place on. One of these agencies is the Financial Industry Regulatory Authority (FINRA), who charge a Trading Activity Fee of $0.000145 * Total Shares Sold.

Robinhood hidden fees

Robinhood also needs to pay the Securities and Exchange Commission (SEC) a Regulatory Transaction Fee of $0.0000229 * Total Trade Amount in Dollars, a fee they pass on to the user. However, Robinhood waives this fee for sales with a notional value of $500 or less.

For option sells, FINRA’s fee is adjusted to $0.00244 * Number of Contracts Sold, with a maximum fee of $7.27 per transaction.

Lastly, Robinhood may charge American Depositary Receipts (ADRs) Fees for trading foreign stocks on an American exchange. These fees typically range from $0.01-$0.03 per share.

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Withdrawing Fees at Robinhood

Although Robinhood does not charge a fee to withdraw money from your brokerage account to your bank, they charge a 1.5% fee when withdrawing to an external debit card.

One neat feature that separates Robinhood from its online investing rival, Webull, is that the former does not charge for domestic or international wire transfers, while the latter charges $45 for withdrawals via international wire. However, users should be aware of any potential fees from their remitting bank and intermediary bank for these transactions, just to be safe.

Lastly, domestic check deliveries to US addresses are free on Robinhood, but cost $20 if the individual requests overnight shipping, and $50 for international overnight shipping.

Robinhood fees schedule

Transferring Stocks Fees

Robinhood users that wish to transfer their stocks to another brokerage via Automated Customer Account Transfer Service (ACATS) incur a $100 fee. This process can be done either through a partial transfer or a full transfer. Initiating a full transfer will lead to Robinhood closing your account, so if you are interested in keeping your account for further use, you should initiate a partial transfer.

Robinhood Margin Charges

Individuals looking to borrow funds for trading from Robinhood are required to have a minimum of $2,000 account balance, and must maintain that minimum to avoid margin calls if the position decreases in value. Robinhood charges a standard margin interest rate of 11.25%.

Robinhood Gold Charges

Robinhood Gold is a premium membership, offering investors a boost in tools and upgrades. Robinhood Gold is a subscription-based service that costs $5 per month. A one-month trial is also available for investors looking to try the subscription out.

Robinhood Gold members have access to 4.15% interest on uninvested cash (instead of the standard 1.65%), professional research from Morningstar, Level II market data from Nasdaq, and an included $1,000 in margin. Any margin use beyond the initial $1,000 comes with a 7.25% APY (instead of the standard 11.25%).

Robinhood Statement Fees

Although Robinhood sends investors a digital copy of their account statements and trade confirmations, users can elect to receive a paper version of these reports for a fee. Monthly paper statements incur a $5 charge, and paper trade confirmations cost $2 per trade.

Robinhood Fees Conclusion

New investors looking to get their feet wet in trading stocks need to look no further than Robinhood. Opening an account is free, there are no minimum requirements, and trading is commission-free. It is no surprise the platform is a favorite among online investors. As long as users are are aware of the potential fees involved in trading foreign stocks, margin trading, and receiving paper confirmations, it is unlikely that they will confront any surprise fees while using the brokerage.

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Updated on 1/24/2023.

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