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

Robinhood does not charge a commission when you buy or sell stocks, exchange-traded funds (ETFs), options, or cryptocurrencies on its platform. That was the company's founding feature in 2015. However, Robinhood does charge fees in specific situations: when you use margin (borrowed money), when you transfer funds out of the account, and when you hold certain products like cryptocurrency wallets.

The fees you pay depend on which Robinhood account type you use and what you do with your money. A basic Robinhood account has different costs than a Robinhood Gold account, which offers margin and other features for a monthly subscription. Understanding where fees appear helps you predict what your actual costs will be.

Key Takeaways

  • Stock, ETF, and options trades on Robinhood carry no commission, but margin accounts charge a monthly subscription fee starting at $5 per month.
  • Robinhood charges wire transfer fees when you move money out of your account: $5 for outgoing domestic wires and $15 for international wires.
  • Cryptocurrency held in Robinhood Crypto wallets incurs a 1.5% withdrawal fee when you move coins off the platform.
  • Robinhood Gold charges interest on borrowed money at rates that vary based on your account balance and market conditions.
  • Certain inactive accounts or accounts with low balances may face additional restrictions, though Robinhood does not charge an inactivity fee.

Margin account fees and interest charges

If you open a Robinhood Gold account, you pay a monthly subscription fee to access margin (the ability to borrow money to invest). The base subscription starts at $5 per month for accounts under $2,000, though Robinhood adjusts this based on your account balance. Accounts with larger balances may pay higher subscription fees — Robinhood's pricing structure ties the fee to how much you have invested.

Beyond the subscription, you also pay margin interest on any money you borrow. This interest rate fluctuates and depends on how much you borrow and your account balance. Robinhood publishes its current margin interest rates on its website, but the rate you pay may differ from the published rate depending on your specific situation. The interest accrues daily and appears on your monthly statement.

A standard Robinhood account (without Gold) does not charge a monthly fee and does not allow margin borrowing, so you avoid both the subscription cost and margin interest entirely.

Wire transfer and withdrawal fees

Robinhood charges a flat fee when you request a wire transfer out of your account. A domestic wire transfer (money sent to a U.S. bank account) costs $5. An international wire transfer (money sent outside the United States) costs $15. These fees are deducted from the amount you transfer, so if you wire out $1,000 domestically, you receive $995.

Automated Clearing House (ACH) transfers — the standard way most people move money between their Robinhood account and a linked bank account — carry no fee. ACH transfers typically take three to five business days. Wire transfers are faster (usually one business day) but cost money, so most people use ACH for routine deposits and withdrawals.

If you close your account, Robinhood does not charge a closure fee. Any remaining cash in your account can be withdrawn via ACH at no cost, or via wire transfer if you pay the wire fee.

Cryptocurrency wallet and transfer fees

Robinhood offers two ways to hold cryptocurrency: in your Robinhood account (where you cannot transfer coins off the platform) or in a Robinhood Crypto wallet (where you can move coins to external wallets or exchanges). If you use the wallet feature and withdraw cryptocurrency, Robinhood charges a 1.5% withdrawal fee on the amount you move out.

This fee applies only when you transfer coins off Robinhood's platform. Buying, selling, and holding cryptocurrency within your Robinhood account itself has no transaction fee — Robinhood makes money on the spread (the difference between the buy and sell price), not on a per-trade commission.

Robinhood does not charge a monthly fee to hold a Crypto wallet, but you do pay the 1.5% fee each time you withdraw coins. If you plan to move cryptocurrency frequently, this fee can add up.

Account maintenance and inactivity

Robinhood does not charge an inactivity fee if your account sits unused for months or years. You can open an account, deposit money, and leave it untouched without paying a penalty. However, if your account balance falls below certain thresholds or if you do not maintain the minimum balance required for certain features, Robinhood may restrict access to margin or other premium features.

If you hold a Robinhood Gold account but your balance drops below the minimum (typically $2,000, though this can vary), Robinhood may downgrade you to a standard account and stop charging the monthly Gold subscription. This is not a fee — it is a change in your account type.

Comparing Robinhood fees to other brokers

Most major brokers — including Fidelity, Charles Schwab, and E-Trade — also offer commission-free stock and ETF trading. The main difference between Robinhood and these competitors is usually in margin fees, account minimums, and additional services. Robinhood's margin subscription ($5 to $10+ per month depending on balance) is lower than some competitors' margin interest rates, but higher than others.

Robinhood has no account minimum to open a standard account, while some brokers require $500 or $1,000 to start. However, Robinhood's cryptocurrency fees (1.5% withdrawal) are higher than some crypto-focused platforms, which may charge 0.5% to 1% or offer free withdrawals. If you plan to trade options or use advanced tools, other brokers may offer more features at similar or lower cost.

Hidden costs: spreads and market impact

While Robinhood does not charge a commission, you still pay a cost every time you trade: the bid-ask spread. This is the difference between what buyers are willing to pay and what sellers are asking. When you buy a stock, you pay the higher ask price; when you sell, you receive the lower bid price. Robinhood does not set this spread — the market does — but you pay it regardless.

On highly liquid stocks (those traded frequently), the spread is usually tiny, often just a penny or two per share. On less liquid stocks or during market volatility, the spread widens and costs you more. This is not a Robinhood fee, but it is a real cost of trading that affects your returns.

Robinhood also makes money by lending out shares you hold (if you allow it) and by receiving payment for order flow — money from market makers who buy your orders. These practices do not directly cost you a fee, but they do represent ways Robinhood profits from your account activity.

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 create an account and fund it with any amount. The only fee you pay is when you use specific features like margin or wire transfers.

What happens if I don't have enough money to cover a margin interest payment?

Robinhood will deduct the margin interest from your cash balance automatically. If your account does not have enough cash, Robinhood may force you to sell positions to cover the interest, or it may restrict your account until you deposit more money. Check your account statements monthly to see how much interest you are paying.

Can I avoid the 1.5% cryptocurrency withdrawal fee?

Yes. If you hold cryptocurrency in your Robinhood account (not in a Crypto wallet), you can buy and sell it without paying a withdrawal fee. The trade-off is that you cannot transfer coins to an external wallet or exchange. Only the Crypto wallet feature charges the 1.5% withdrawal fee.

Does Robinhood charge fees for dividends or corporate actions?

No. Robinhood does not charge a fee when you receive dividends, when a stock splits, or when you participate in other corporate actions. These events happen automatically and cost you nothing.

What is the difference between ACH and wire transfer fees?

ACH transfers are free and take three to five business days. Wire transfers cost $5 (domestic) or $15 (international) but arrive in one business day. Use ACH for routine transfers unless you need money urgently and are willing to pay the wire fee.