Robinhood's core trading has no commission, but other fees explore

Robinhood does not charge a commission when you buy or sell stocks, exchange-traded funds (ETFs), options, or cryptocurrencies on its platform. That was the company's original selling point when it launched in 2015, and it remains true. However, Robinhood does charge fees in specific situations, and some accounts carry monthly costs.

The fees you might encounter depend on what you trade, how you trade it, and which account type you hold. A stock trade costs nothing. A wire transfer out of your account costs money. A margin loan (borrowing to trade) carries interest. Understanding which actions trigger fees helps you avoid surprises.

Key Takeaways

  • Stock and ETF trades on Robinhood carry no commission, but wire transfers out of your account cost $5 each.
  • Robinhood Gold, the premium subscription tier, costs $5 per month and gives you margin buying power and other features.
  • Margin interest rates vary based on how much you borrow and current market conditions, typically ranging from around 5% to 12.5% annually.
  • Options trades are commission-free, but Robinhood collects a regulatory fee of $0.01 per contract on options you sell.
  • Cryptocurrency trades have no commission, but the spread (the difference between buy and sell price) is how Robinhood makes money on crypto.

Wire transfer and account maintenance fees

Robinhood charges $5 to wire money out of your account to a bank or another brokerage. Transferring securities (stocks or ETFs) to another brokerage is free. Transferring securities into Robinhood is also free. The $5 fee applies only to cash wire transfers leaving the platform.

Robinhood does not charge a monthly account maintenance fee for its standard brokerage account. If you open a Robinhood Gold account (the paid tier), you pay $5 per month for margin buying power and other features. You can cancel Gold at any time and return to the free standard account.

Deposits into your Robinhood account are always free, whether by bank transfer (ACH) or wire. The $5 wire fee applies only when money leaves your account, not when it enters.

Robinhood Gold subscription and margin interest

Robinhood Gold is an optional paid membership that costs $5 per month. It gives you access to margin, which means you can borrow money from Robinhood to buy securities. A standard Robinhood account does not include margin; you can only spend cash you have deposited.

If you use margin (borrow money), you pay interest on the borrowed amount. Robinhood's margin interest rates depend on how much you borrow and current market conditions. Rates typically range from around 5% to 12.5% annually, though the exact rate you pay is shown in your account before you borrow. Interest accrues daily and is charged to your account monthly.

You do not have to use margin even if you have Gold. Many Gold subscribers keep the feature available but never borrow. The $5 monthly fee applies whether you use the margin or not. If your account balance drops below certain thresholds, Robinhood may charge a higher margin interest rate or restrict your borrowing.

Options trading regulatory fees

Robinhood charges no commission on options trades — buying or selling call and put contracts costs nothing. However, when you sell an options contract, Robinhood collects a regulatory fee of $0.01 per contract on your behalf and sends it to the exchange. This fee is set by the exchange, not by Robinhood.

If you buy an options contract, there is no regulatory fee. The fee applies only to contracts you sell. For example, selling 10 call contracts would cost $0.10 in regulatory fees ($0.01 × 10). This fee is separate from any margin interest you might owe if you use borrowed money to trade options.

Cryptocurrency trading spreads

Robinhood charges no commission on cryptocurrency trades. However, Robinhood makes money on crypto by adding a spread — a markup on the price you pay when you buy and a markdown on the price you receive when you sell. The spread varies by cryptocurrency and market conditions.

When you buy Bitcoin on Robinhood, the price you see includes Robinhood's spread. When you sell, the price you receive has the spread subtracted. This is different from a visible fee, but it costs you money in the same way. You cannot see the exact spread amount in your account; it is built into the quoted price. The spread on less popular cryptocurrencies is typically wider than on major ones like Bitcoin and Ethereum.

Dividend and interest payments

Robinhood does not charge a fee when you receive dividends from stocks you own or interest from cash held in your account. Dividends are paid directly to your account at no cost. Cash held in a Robinhood brokerage account earns interest through Robinhood's cash management feature, and that interest is credited to your account with no fee.

If you reinvest dividends automatically (buying more shares with the dividend payment), there is no fee for that transaction either. Dividend reinvestment is a free feature on Robinhood.

Account transfers and closing

Moving your securities to another brokerage (called an ACAT transfer or "transfer out") is free. Some brokerages charge a transfer fee, but Robinhood does not. Closing your Robinhood account costs nothing. If you have an outstanding margin balance when you close, you must pay it off first.

If you transfer securities into Robinhood from another brokerage, that transfer is also free. Robinhood does not charge incoming transfer fees. The only transfer-related cost is the $5 wire fee if you want to move cash out of your account.

Frequently Asked Questions

Does Robinhood charge a fee to deposit money?

No. Deposits by bank transfer (ACH) and wire transfer are free. You can deposit as often as you want at no cost. Robinhood does charge $5 to wire money out, but deposits in are always free.

What happens if I don't have enough cash to cover a trade?

On a standard account, the trade will not go through. On a Gold account with margin, Robinhood will lend you the money and charge you interest. The interest rate depends on how much you borrow and current conditions, typically 5% to 12.5% annually.

Do I pay taxes through Robinhood?

No. Robinhood does not collect taxes or charge a tax fee. You are responsible for reporting your gains and losses to the IRS. Robinhood sends you a tax document (Form 1099) at the end of the year showing your transactions.

Is there a fee if I buy and sell the same stock on the same day?

No commission fee. However, if you day trade (buy and sell the same security multiple times in five business days), you may trigger the pattern day trader rule, which requires $25,000 in your account. This is a regulatory rule, not a Robinhood fee, but it can restrict your trading if your balance falls below that amount.

What fees does Robinhood charge that other brokerages don't?

Robinhood's fee structure is similar to most modern brokerages: no stock commissions, margin interest if you borrow, and a regulatory fee on options you sell. The main difference is the $5 wire transfer fee, which some brokerages waive. The $5 monthly Gold subscription is optional and unique to Robinhood's platform.