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Robinhood Fees Schedule, Investing Commissions, Brokerage Account Stock Trading Cost


2018 Robinhood fees schedule, commissions, broker stock trading cost, annual and inactivity charges, online investing account pricing, and cash sweep rates.



Robinhood Trading Commissions


InvestmentsCommissions
US Listed and OTC Securities $0 commission for Robinhood Financial self-directed individual cash or margin brokerage accounts that U.S. listed securities via mobile devices
Listed foreign securities $50 per trade
Euroclear $35 per trade
Canadian $35 per trade
Foreign Security Cancel/Trade Adjustment $15 per adjustment
All broker assisted phone trades $10 per trade

Robinhood does not take any commissions for U.S. listed stocks, ETFs, or OTC securities. No trading fees means that users can buy and sell securities for free with no limitations set by Robinhood. Robinhood does offer margin accounts called Robinhood Instant and Robinhood Gold. The details of these accounts are included later in this article, but an important consequence of these accounts is that they may restrict day trading limits. These limitations are set by the Federal Industry Regulatory Authority (FINRA) for pattern day trading and users are encouraged to familiarize themselves with these regulations before using any brokerage or trading platform. These limitations do not only effect Robinhood users but may be an unexpected side effect of Robinhood’s premium account offerings.



Robinhood Annual Fee


Robinhood does not charge annual fee for regular brokerage individual or joint taxable accounts. The broker does NOT offer IRA accounts.



Robinhood Inactivity Fee


Robinhood does not charge account inactivity fee.



Robinhood Maintenance Fee


Robinhood does not charge annual maintenance fee for regular brokerage individual or joint taxable accounts.



Robinhood Review


Read full Robinhood Investing Review »



Incoming ACH Transfers


Robinhood also does not charge its customers for incoming or outgoing (ACH) bank transfers. That’s right, Robinhood will allow up to $50,000 in deposits per day at no charge to the customer. With Gold and Instant accounts, the first $1,000 of each day’s deposit will be available instantly for trading. Settlement time for any deposit larger than $1,000 will be around 4 to 5 business days. So where does Robinhood make its money?



Robinhood Promotion


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Robinhood Gold Account Review


Debit Balance Margin Rate
above $50,000 5.00%
below $50,000 $10/month for every $2,000 borrowed

The most common revenue stream for Robinhood is through its Gold membership offering. Robinhood Gold is a margin account that allows users to borrow up to 2x their portfolio value borrowed to them by Robinhood. A Gold membership starts at $6 per month and will borrow $1,000 to the user. In other words, users have the option to pay 7.2% ($72.00) annually to trade/invest with $1,000 additional cash. For $9 per month users are offered $1,500 in margin. The percentage breakdown for this is also 7.2% ($108.00) annually. The third tier and above offer $2,000 in margin at a rate of $10 per $2,000 per month ($120.00 anually for every $2,000 borrowed on margin). This means users can borrow unlimited margin funds (pending the availability of actual funds in their account) at an annual percentage rate of 6% (0.5% monthly). The fee structure changes for accounts with over $50,000 in funds. These accounts are subject to 5% annual fee for any amount taken on margin. For example, if someone having over $50,000 of their own money in Robinhood decided to borrow $25,000, this person would pay $25,000 x 0.05 = $1,250 each year. This is equivalent to $104.17 each month that a $25,000 margin balance is held.

Another reason users opt for a Gold account is access to after-hours trading. Normal trading hours run from 9:30 a.m. EST and halt at 4:00 p.m. EST. With Robinhood Gold users can begin buying and selling securities in the Pre-Market, thirty minutes early, at 9:00 a.m. EST. This continues into After-Hours trading times which continues for another two hours, until 6:00 p.m. EST. Users like this feature as it allows trading around quarterly earnings announcements.




Robinhood Mutual Funds


Robinhood does not offer mutual funds investing at this time.



Robinhood Options and Bonds Trading


Robinhood does not offer options and bonds trading ability at this time.



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Robinhood Brokerage Fees


ServiceFee
Bank Transfer (ACH) Incoming $0
Bank Transfer (ACH) Outgoing $0
Domestic Wire Transfer $25
International Wire Transfer $50
Domestic Overnight Check Delivery $35
Returned Check/Wire/ACH, Stop payment $30
ACAT Incoming $0
ACAT Outgoing $75
Electronic Statements, Confirms $5
Paper Confirms $2
Electronic Statements Confirms $0
Domestic Overnight Mail $35
International Overnight Mail $50
Restricted Accounts $10 + commissions
Worthless Securities Processing $30 + other fees may apply
Tender Offer Order $50
SEC Fee $23.10 per $1,000,000 principal (sells only)
TAF (Trading Activity Fee) $0.000119 per share (equity sales); $5.95 max.

Robinhood does charge commissions on several less common types of trades. For instance, users will be charged $50 per trade for all Listed Foreign Securities. These are stocks that are made available by a broker in the United States but are trading on foreign markets. Robinhood will charge $35 per trade for stocks purchased through Euroclear Bank SA and Canadian-Link Services. These are exchanges run through Belgium and Canada respectively allowing international transactions from certified brokers. Robinhood will also charge for cancelation and/or adjustment of foreign securities transactions at a rate of $15 per security. If ever there is a need for a broker assisted phone trade, Robinhood will charge $10 per trade for this service.

While Robinhood does not charge fees for standard deposits and withdrawals, they do charge for some forms of fund transfer, account maintenance, regulatory trading fees, and Automated Customer Account Transfer Services ($75). Within funds transfers, users are subject to a $25 domestic wire transfer fee, $50 international wire transfer fee, $35 for overnight check delivery, and $30 for each returned check, ACH, wire recall and stop payments. The latter occur when insufficient funds are available in a user’s bank account and a funds transfer must be halted or reversed by Robinhood.

Everyone who trades in the U.S. is subject to the same SEC regulatory trading fees, however, these are nominal and often go unnoticed by the average trader. The SEC will charge $23.10 for every $1,000,000 of principal sold in the market. The total charge is rounded up to the nearest cent. When broken down, the SEC charges one penny for every $432.90 (or less) sold. This money goes directly to the SEC and Robinhood gains no benefit from it. Another regulatory fee incurred in Robinhood and every other brokerage are TAFs (Trading Activity Fees). This fee is obtained by FINRA to cover costs that come from supervising and regulating firms. Like SEC Fees, TAFs are minimal at $.000119 per share sold. This is rounded up to the nearest cent and cannot be greater than $5.95.

Finally, there are a few miscellaneous fees that Robinhood may charge its users on occasion. Restricted accounts may be charged $10 plus commissions. Processing of worthless securities (stocks or bonds that have a market value of $0.00) will cost $30 plus additional fees when necessary. Any voluntary corporate action made by a shareholder is subject to a fee of $50. An example of a voluntary corporate action is a tender offer, wherein corporations offer tender and shareholders must volunteer to accept.


Robinhood Promotion


Open account and get FREE stock.

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