11 Robinhood Fee Questions (Quick Answers!)

Disclaimer: This content is not intended to be financial advice and is for informational purposes only. aTimeforCash is reader-supported. We may earn commissions if you buy through our links.

Robinhood, an online brokerage company founded in 2013, allows customers to buy and sell stocks, ETFs, options, and cryptos commission-free. The company claims that its goal is to democratize the financial markets and break down barriers for new investors.

If you are looking to cut down costs and you like the idea of commission-free trades, Robinhood can be a good option. However, it’s important to make sure that you understand all the associated costs and tradeoffs before opening an account.

This blog post will answer some of Robinhood’s fees’ most common questions.


In This Post:


1) Does Robinhood Charge Reorganization Fees

There is no need to worry about reorganization fees for trading stocks. Reorganization fees only come up when you transfer funds between your Robinhood account and another financial institution. 

If you are on the fence about which brokerage to use, Robinhood may be the best option for you because of this commission-free feature.

2) Are There Hidden Fees on Robinhood?

There are a lot of hidden fees in the world, especially when it comes to finances. Some brokers charge transaction and maintenance fees that you might not be aware of until it is too late. However, Robinhood does not charge these fees, making it a reliable brokerage for new traders to use.

The only fee you will have to pay on Robinhood is margin interest since there are no commissions or other charges associated with trading stocks.

3) Does Robinhood Charge Fees for ETFs?

(Source: Robinhood Financial Fee Schedule)

One of the most important things to consider regarding your brokerage account is what types of investments you trade. Robinhood does not charge any fees for trading ETFs, making it ideal for low-dollar commission-free ETF trading. 

This comes as quite a relief when you consider all of the other fees associated with brokerages like Fidelity and TD Ameritrade.

You might also wonder whether Robinhood will hold securities in your account when they are not actively trading. Besides that, you also want to be sure that the brokerage company you choose has a perfectly secure system for storing your securities because if they get lost, it can be challenging to replace them. 

Fortunately, Robinhood does not charge any fees for holding securities either, making them a great choice if you are looking for a long-term investment option.

4) Does Robinhood Charge Fees to Withdraw?

One of the most important things to remember about Robinhood is that they do not charge any fees for withdrawing your money. This is an excellent feature if you are looking for a brokerage that will not nickel and dime you every step of the way. You can easily withdraw your money at any time without having to worry about hidden fees or penalties.

5) Does Robinhood Charge Transfer Fees?

(Source: Robinhood Financial Fee Schedule)

It’s important to note that Robinhood charges $75 fee to transfer your Robinhood assets out, whether as a partial or complete transfer. You’ll want to resolve any account restrictions or negative balances in your account prior to requesting a transfer; otherwise, your transfer may be delayed.

6) Does Robinhood Charge Fees to Sell?

(Source: Robinhood Financial Fee Schedule)

Self-Regulatory Organizations (SROs) like FINRA and the SEC set rules for how much brokerages can charge in fees. Robinhood’s fee is $0.000119 per share (equity sells) and $0.002 per contract (options sells). This fee is rounded to the nearest penny and no greater than $595.

This fee is relatively low when you compare it to other brokerages, and it is also much lower than the fees you would have to pay if you went through a traditional investment firm. This can be an excellent option if you want to start trading or looking to save money.

7) Does Robinhood Charge Fees for Bitcoin?

At this time, Robinhood does not charge fees for Bitcoin transactions. This is a significant benefit for users of the platform, as it allows them to trade Bitcoin without worrying about additional costs. 

However, it is essential to note that this may change in the future. Robinhood has not ruled out the possibility of charging fees for Bitcoin transactions in the future, so it is vital to stay up-to-date on the latest news and announcements from the company.

8) Does Robinhood Charge Fees for Limit Orders?

One question that often comes up is whether or not Robinhood charges fees for limit orders. The answer to this question is no, Robinhood does not charge any fees for limit orders. This can be a great option for those who want to be more cautious with their investments and want to avoid overpaying for stocks.

9) Does Robinhood Charge Fees for OTC Stocks?

At this time, Robinhood does not offer any services for trading OTC stocks or pink sheets stocks. This means that if you are looking to invest in these types of stocks, you will have to look elsewhere. 

However, the company does offer commission-free trading for penny stocks, defined as securities with a share price under $5.00, and are usually on display on either the NYSE or NASDAQ exchanges.

10) Does Robinhood Charge Fees for Market Orders?

One of the benefits of using Robinhood is that they do not charge any fees for market orders. This can be an excellent option for those looking to get in and out of stocks quickly without worrying about additional costs. 

However, self-regulatory organizations (SROs) like FINRA and the SEC set rules for how much brokerages can charge in fees. You’ll want to resolve any account restrictions or negative balances in your account prior to requesting a market order.

11) How Much is Robinhood Monthly Fee

There is no monthly fee unless you are using Robinhood Gold. With Robinhood Gold, you can borrow money from the brokerage to trade on margin. 

The margin interest rate is currently set at a whopping 13%. So, if you are going to be using Robinhood Gold, make sure that you are comfortable with the margin interest rate and understand how it works.

Non-trading items included in the Robinhood monthly fee are access to their market data, technical analysis, and Robinhood Gold. Important to note is that the monthly fee for this service is currently $5.00.

Wrapping Up

Robinhood is an excellent choice for those looking for a low-cost option for investing. They do not charge any fees for withdrawing your money, selling stocks, or trading Bitcoin. They also have a very low fee when it comes to limit orders. However, if you want to borrow money to trade on margin, this service has a monthly fee.

References

  1. Robinhood Financial Fee Schedule 
  2. Business Insider
  3. Nerdwallet 

No More Waiting in Limbo. Get Paid up to 2 Days Early with Direct Depositˆ.