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

Robinhood does not charge a commission when you buy or sell stocks, exchange-traded funds (ETFs), options, or cryptocurrencies. That was the company's original selling point when it launched, and it remains true. However, Robinhood does charge fees in specific situations — mostly around account features, transfers, and margin borrowing — and the platform makes money from other sources that affect your returns.

Understanding where those fees hide matters because they can add up, especially if you use certain features regularly or hold a margin account. The fees are not hidden, but they are not always obvious either, and they vary depending on how you use your account.

Key Takeaways

  • Stock and ETF trades on Robinhood carry no commission, but options trades and cryptocurrency trades also have no per-trade fee.
  • Robinhood Gold (the premium subscription) costs $5 per month and gives you margin borrowing and other features; margin interest itself is an additional cost.
  • Transferring money out of Robinhood to another brokerage costs $75 per outgoing transfer, though incoming transfers are free.
  • Robinhood earns money from payment for order flow (selling information about your trades to market makers), which can slightly affect the prices you receive.
  • Wire transfers out of your account incur a $10 fee, and some account maintenance situations may trigger additional charges.

Subscription and margin costs

Robinhood Gold is the platform's paid subscription tier, costing $5 per month. It unlocks margin trading (borrowing money to invest), extended-hours trading, and a few other features. The subscription itself is the only recurring monthly fee Robinhood charges most users.

If you use margin through Robinhood Gold, you also pay interest on the borrowed amount. That interest rate varies based on how much you borrow and market conditions, but Robinhood publishes its current rates on the account settings page. This is separate from the $5 subscription fee — you pay both.

A standard Robinhood account (without Gold) does not charge a monthly fee and does not allow margin borrowing. You can only trade with cash you have deposited.

Transfer and withdrawal fees

Moving money or securities out of Robinhood costs money in most cases. An outgoing transfer of securities to another brokerage costs $75. If you want to move your stocks or ETFs elsewhere, you will pay this fee once per transfer request.

Incoming transfers (moving securities into Robinhood from another brokerage) are free. Transferring cash between your bank account and Robinhood is also free, whether the cash is going in or coming out.

If you request a wire transfer of cash out of Robinhood to your bank, that costs $10. This is different from an ACH transfer (the standard bank transfer), which is free.

How Robinhood makes money without commissions

Robinhood does not charge you a commission, but it does make money from your trades through payment for order flow. When you place a trade, Robinhood sends that order to a market maker (a firm that buys and sells securities). That market maker pays Robinhood for the right to fill your order. Robinhood keeps that payment.

This arrangement means the price you receive on a trade may not be the absolute best price available at that exact moment. The difference is usually small — fractions of a cent — but it adds up over many trades. This is not a fee you see on your statement, but it is a cost you bear indirectly.

Robinhood also earns interest on cash sitting in your account before you invest it, and it benefits from margin interest if you borrow through Gold.

Cryptocurrency and options trading fees

Robinhood charges no commission on cryptocurrency trades, just as with stocks. However, there is a spread — the difference between the buy price and sell price — that is wider than you would see on a dedicated crypto exchange. That spread is how Robinhood makes money on crypto, and it is effectively a cost to you.

Options trades also carry no per-contract commission. You pay no fee to open or close an options position. However, options involve their own risks and complexities, and the bid-ask spread (the difference between what buyers will pay and what sellers will accept) can be significant, especially for less-traded options.

Account maintenance and other charges

Robinhood does not charge an inactivity fee or a monthly account maintenance fee for a standard cash account. However, if your account falls below certain thresholds or if you maintain a margin account, some fees may apply in edge cases — for example, if you have a negative cash balance or if Robinhood needs to liquidate positions to cover a margin call.

Dividend reinvestment is free, and there is no fee for holding positions overnight or for keeping cash in your account. Robinhood also does not charge for research tools, charts, or educational content.

Comparing Robinhood's fees to other brokerages

Most major brokerages (Fidelity, Charles Schwab, E-Trade, Interactive Brokers) also offer commission-free stock and ETF trading. The real differences lie in margin rates, transfer fees, and how they make money from your trades. Some brokerages charge higher margin interest but lower transfer fees; others are the reverse.

If you plan to transfer your account elsewhere, the $75 outgoing transfer fee is worth factoring into your decision. If you use margin regularly, comparing margin interest rates across platforms can save you money. For a basic cash account with no transfers planned, Robinhood's fee structure is competitive with other free brokerages.

Frequently Asked Questions

Does Robinhood charge a fee to open an account?

No. Opening a Robinhood account is free, and there is no minimum deposit required. You can start with any amount of money.

What is the $75 transfer fee for?

When you move stocks or ETFs from Robinhood to another brokerage, Robinhood charges $75 per transfer request to cover the cost of processing the transfer. Incoming transfers to Robinhood are free.

Do I have to pay for Robinhood Gold?

No. A standard Robinhood account is free and does not require Gold. Gold ($5 per month) is optional and only needed if you want margin trading or extended-hours access.

Why is the price I get sometimes worse than the market price I see?

Robinhood uses payment for order flow, meaning it sells your order information to market makers. This can result in slightly worse prices than the absolute best available, though the difference is usually small. This is how Robinhood makes money without charging commissions.

Are there any hidden fees I should know about?

No major hidden fees, but wire transfers out cost $10, and margin interest (if you use Gold) is an ongoing cost separate from the subscription. The bid-ask spread on crypto and options is also a real cost, though not labeled as a fee.