Robinhood’s Fees
Robinhood is well known as a zero-commission broker, and many investors think it is completely free. However, there are several fees that you may run into when using Robinhood.
Keep reading to learn more about Robinhood’s hidden fees.
Key Takeaways
• Robinhood is commission-free, but some fees still apply.
• Fees at Robinhood include
regulatory fees, trading fees, securities-related fees, and margin fees.
• Robinhood lists its fees on the
broker’s fee schedule to be transparent.
Robinhood’s Approach to Fees
Robinhood promotes itself as a no-cost broker for trading. It doesn’t charge commissions, but some administrative and regulatory fees still apply. Overall, Robinhood’s fee model is more service-based instead of charging for trades.
Here’s a look at the fees that aren’t always obvious from Robinhood’s website.
Hidden Fees at Robinhood
Robinhood’s hidden fees are tied to trading, its Spending account, and account management.
Robinhood Regulatory Fees
A common fee comes from regulators like FINRA and the SEC.
These fees don’t come from Robinhood, but the broker does pass them on. The SEC fee is $8 per $1,000,000 of principal for all sell orders, but Robinhood does not pass it along if the sale is under $500.
Another regulatory fee is the
Trading Activity Fee (TAF). This fee applies on sell orders. It is about $0.000166 per share for stocks and $0.00279 per options contract. Like the SEC fee, Robinhood only charges it on trades over $500.
Other fees come from certain investments and margin use.
For example, Robinhood
passes on ADR fees (American Depository Receipts). These are custodial fees from the issuing banks and are usually between $0.01 and $0.03 per share.
Margin trading also has costs. While not exactly hidden, it’s important to know that Robinhood charges a margin rate of 5% that decreases with larger balances.
Robinhood Promotion
Open Robinhood Account
Robinhood Spending Account Fees
The Robinhood Spending account (cash management) also has some fees. The main one is a $2.50 ATM withdrawal charge. This applies to both in-network and out-of-network ATMs. You can avoid the fee by setting up direct deposits of at least $300 each month. Foreign ATMs may have their own fees that are not covered by Robinhood’s program.
Other than ATM fees, there are no major charges. Using the Spending account abroad is free in supported countries.
Robinhood also does not charge for card replacements, incoming transfers, or overdrafts (accounts can’t go negative).
Robinhood Account Fees
Some account management actions have fees.
For example, outgoing Instant Transfers cost 1.75% of the transfer amount. This applies to instant withdrawals to debit cards and bank accounts as well.
Other transfer-related fees include $25 for returned checks, $25 for outgoing wires, and $100 for outgoing ACAT transfers.
Robinhood also charges for some requests, such as paper documents or overnight mail. Paper statements and trade confirmations cost $25 each. Overnight mail costs $20 for domestic and $50 for international delivery.
Robinhood Promotion
Open Robinhood Account
Updated on 1/1/2026.
Continue Reading