Trading fees on Robinhood | Robinhood (2024)

Investing with a Robinhood investing account is commission free. We don’t charge you fees to open or maintain your account.

However, the following regulatory organizations charge Robinhood fees for trading that we do pass on to you to cover our costs:

• The Financial Industry Regulatory Authority (FINRA) charges a regulatory transaction fee and trading activity fee for sell orders. All brokerages are charged these fees.
• Issuing banks may charge American depositary receipt fees.
• The Options Clearing Corporation charges for options regulatory and exchange fees.

FINRA is required to pay this fee to the Securities and Exchange Commission (SEC) by law. To generate the funds necessary to do so, FINRA passes the fee on to its members, and many of these members, including Robinhood, pass the fee on to the customers. The fee is ultimately intended to cover the costs incurred by the government, including the SEC, for supervising and regulating the securities markets and securities professionals. The rate is subject to annual and mid-year adjustments.

As of May 22, 2024, the SEC fee is $27.80 per $1 million of principal (only for sell orders), which is rounded up to the nearest penny. Robinhood doesn’t pass this fee on to you for sales with a notional value of $500 or less.

FINRA charges this fee to brokerage firms like Robinhood to recover the costs of supervising and regulating these firms. We pass this fee to our customers, except for sales of 50 shares or less.

As of January 1, 2024, the TAF is $0.000166 per share (equity sells) and $0.00279 per contract (options sells). This fee is rounded up to the nearest penny, which will be no greater than $8.30 per trade. Keep in mind, you may be charged more than the $8.30 fee because the fee limit is based on the execution of your order, which can occur with multiple trades.

American depositary receipts (ADRs) are certificates that represent foreign stocks that you can trade on U.S. stock markets. The banks issuing these certificates may charge custodial fees that typically range from $0.01-$0.03 per share.

The Options Clearing Corporation (OCC) collects an Options Regulatory fee (ORF) that the U.S. options exchanges assess their members in connection with options transactions.

The ORF varies by options exchange, where an options trade executes, and whether the broker who’s responsible for the trade is a member of a particular exchange.

The OCC also charges a clearing fee for their central counterparty clearing and settlement services to 16 exchanges.

These fees are industry standard. The purpose of these fees is to recover a portion of the costs related to the OCC’s supervision and regulation of the options markets.

Starting on or after October 23, 2023, we'll start collecting a combined $0.03 fee for each options contract traded to cover our costs for these fees.

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