Robinhood does not charge a commission when you sell stock, options, or crypto

Robinhood made its name by eliminating the per-trade commission that traditional brokers charged. When you sell shares, options contracts, or cryptocurrency on Robinhood, you pay zero dollars in commission fees to the platform itself. This applies whether you sell one share or one thousand.

That said, "free" does not mean cost-free in every sense. The platform makes money in other ways, and some of those ways affect what you receive when you sell. Understanding what you actually pay — and what Robinhood actually receives — requires looking beyond the commission line.

Key Takeaways

  • Robinhood charges no commission on stock, options, or crypto sales, but the platform profits from the difference between the bid and ask price (called the spread).
  • When you sell, you receive the bid price, which is typically lower than the ask price buyers pay, and that gap is where Robinhood and market makers earn money.
  • Robinhood Gold, the paid subscription tier, costs $5 per month and offers margin trading and extended-hours trading, but does not reduce spreads on sales.
  • The actual price you receive when you sell depends on market conditions and order type, not on Robinhood's fees — limit orders let you set a minimum price, while market orders execute immediately at whatever the market offers.
  • Robinhood's revenue model relies on payment for order flow, meaning market makers pay Robinhood to route trades through them, which can affect the prices you see.

How Robinhood makes money without charging commissions

Robinhood's business model rests on three main revenue streams, none of which appear as a line item on your sell confirmation. The first is the bid-ask spread. When you sell a stock, you receive the bid price — the highest price a buyer is willing to pay right now. When someone else buys, they pay the ask price, which is higher. Robinhood and the market makers it works with profit from that gap. On liquid stocks like Apple or Tesla, the spread might be a penny or two per share. On less-traded stocks, it can be much wider.

The second revenue source is payment for order flow (PFOF). Market makers — firms that buy and sell securities constantly — pay Robinhood to route customer orders to them. In exchange, those market makers agree to offer prices that are at least as good as the national best bid and offer. Robinhood discloses this arrangement, but it means the prices you see are influenced by Robinhood's financial incentive to send orders to specific firms.

The third is Robinhood Gold, a $5-per-month subscription that offers margin trading (borrowing money to buy securities), extended-hours trading, and other features. Gold does not reduce spreads or change how much you receive when you sell — it simply unlocks additional trading capabilities.

What you actually receive when you sell

The price you receive when you sell depends on the order type you choose and current market conditions. If you place a market order, your sale executes immediately at the best available bid price at that moment. This is fast but means you accept whatever the market is offering right now. If the stock is moving quickly, the price you receive could be noticeably lower than the price you saw when you clicked sell.

If you place a limit order, you set a minimum price you are willing to accept. Your order sits in the queue until someone is willing to buy at that price or higher. This gives you control over the price but means your sale might not execute at all if the stock never reaches your limit. Robinhood does not charge extra for limit orders — the spread is the same either way.

The bid-ask spread is the real cost of selling. On a stock with a $0.01 spread, selling 100 shares costs you $1 compared to the ask price. On a thinly traded stock with a $0.50 spread, selling 100 shares costs you $50. This is not a Robinhood fee — it is a market reality that exists on every broker — but it is the closest thing to a cost you will encounter when you sell.

Selling options and crypto on Robinhood

Robinhood also charges no commission on options sales. When you sell an options contract, you receive the bid price for that contract, and the spread between bid and ask is where the profit lies for market makers and Robinhood. Options spreads tend to be wider than stock spreads, especially on less-popular contracts, so the cost of selling can be more noticeable.

Cryptocurrency sales work the same way. Robinhood charges no commission on crypto trades, but the spread between the price you receive when you sell and the price others pay when they buy is how Robinhood profits. Crypto spreads on Robinhood tend to be wider than spreads on major crypto exchanges, which is one reason some traders use multiple platforms.

Fees that might apply when you sell

While Robinhood itself does not charge a commission, other costs can apply. If you sell a stock you bought less than two business days ago, the sale is a good-faith violation under SEC rules if you do not have sufficient settled cash. Robinhood will warn you before this happens, but repeated violations can result in a 90-day restriction on your account. This is not a Robinhood fee — it is an SEC rule — but it can prevent you from selling when you want to.

If you use margin (borrowed money) to buy securities and then sell them, you may owe interest on the borrowed amount. Robinhood Gold subscribers pay 6.5% annual interest on margin balances, though this rate can change. This is not a fee on the sale itself but a cost of borrowing.

If you sell a security at a loss, there is no fee, but you may have tax consequences. If you sell at a gain, you owe capital gains tax, which is not a Robinhood fee but a tax obligation. Robinhood provides a tax document (Form 1099-B) that reports your sales, but the tax itself is owed to the IRS, not to Robinhood.

How Robinhood's pricing compares to other brokers

Most major brokers — Fidelity, Charles Schwab, E-Trade, TD Ameritrade — also charge zero commission on stock and options sales. The real difference between brokers is the spread and how they handle order flow. Some brokers, like Interactive Brokers, are transparent about their order routing and offer tighter spreads for active traders. Others, like Robinhood, prioritize simplicity and a mobile-first experience but may have wider spreads on less-liquid securities.

If you sell frequently or trade less-popular stocks, comparing spreads across brokers can matter. If you sell blue-chip stocks occasionally, the difference is usually small enough that the broker's user interface and features matter more than the spread.

Frequently Asked Questions

Does Robinhood charge a fee if I sell at a loss?

No. Robinhood charges no commission whether you sell at a gain, a loss, or break even. You still pay the bid-ask spread, which is the same regardless of your profit or loss. You do not owe capital gains tax on a loss, though you can use losses to offset gains for tax purposes.

What is the difference between the price I see and the price I get when I sell?

The price you see is typically the last trade price or the current ask price (what buyers are paying). When you sell, you receive the bid price, which is lower. That difference is the bid-ask spread. On highly liquid stocks, it is usually small. On less-traded stocks, it can be significant.

Does Robinhood Gold reduce what I pay when I sell?

No. Robinhood Gold ($5 per month) unlocks margin trading and extended-hours trading, but it does not change the bid-ask spread or reduce the cost of selling. You pay the same spread whether you have Gold or not.

Can I avoid the bid-ask spread by using a limit order?

A limit order lets you set a minimum price, so you avoid accepting a price lower than you want. But your order might not execute if the stock never reaches your limit. You cannot avoid the spread itself — it is a market feature, not a Robinhood choice — but you can control whether you accept it.

Why does Robinhood show me a different price after I click sell?

Market prices change constantly. Between the moment you see a price and the moment your order executes, the bid price may have moved. A market order executes at the best available bid at that exact moment. If the stock is moving quickly, that price can be noticeably different from what you saw a second earlier.