Robinhood does not charge a commission to sell crypto, but you pay the spread

Robinhood charges zero commission on crypto sales — you will not see a separate fee line item when you sell Bitcoin, Ethereum, or other cryptocurrencies on the platform. However, you do pay a cost every time you trade, and that cost is built into the price you receive. This cost is called the spread, which is the difference between what Robinhood pays for the crypto and what it charges you to buy it (or pays you to sell it).

When you sell crypto on Robinhood, the app shows you the price you will receive before you confirm the sale. That price already includes the spread — Robinhood has already subtracted its cut. You cannot see the spread as a separate number, and Robinhood does not publish a fixed spread percentage. The spread changes based on market conditions and the specific cryptocurrency you are trading.

This is different from a commission, which would be a flat dollar amount or percentage charged on top of the sale price. Robinhood does not do that. But the spread means you are still paying for the ability to trade, even though the word "free" appears in Robinhood's marketing.

Key Takeaways

  • Robinhood charges no commission fee when you sell crypto, but the price you receive includes a spread that Robinhood keeps.
  • The spread is not shown as a separate line item — it is already subtracted from the price displayed on your screen before you confirm the sale.
  • Spread amounts vary by cryptocurrency and market conditions, so Robinhood does not publish a fixed percentage or dollar amount.
  • You pay the spread on every buy and every sell, so trading frequently increases your total costs even though each individual trade shows zero commission.

How the spread works in practice

Imagine Bitcoin is trading at $45,000 on the open market. Robinhood might buy Bitcoin from its liquidity providers at $44,950 and sell it to you at $45,050. When you sell that Bitcoin back, Robinhood might offer you $44,950 — the lower price. The $100 difference on a single Bitcoin is Robinhood's spread, and it goes directly to Robinhood, not to you.

On smaller trades, the spread is smaller in dollar terms but the percentage can be similar or higher. If you are selling $100 worth of Ethereum, the spread might be $1 to $3 depending on market volatility and how much Ethereum is trading that day. On a $10,000 trade, the spread could be $50 to $150.

The spread is Robinhood's only revenue from crypto trading on the platform. Because Robinhood makes money on the spread rather than on commissions, it benefits when you trade frequently. The more you buy and sell, the more spreads you pay.

Spreads vary by cryptocurrency and market conditions

Robinhood does not publish its spread rates, so you cannot look up in advance what you will pay on a specific trade. The spread depends on two main factors: which cryptocurrency you are trading and how volatile the market is at that moment.

Major cryptocurrencies like Bitcoin and Ethereum typically have tighter spreads — meaning lower costs — because they trade in high volume and Robinhood can buy and sell them easily. Smaller or less-traded cryptocurrencies have wider spreads because they are harder to move quickly and carry more risk for Robinhood.

During periods of high market volatility, spreads widen across all cryptocurrencies. When prices are moving fast and uncertainty is high, Robinhood charges more to protect itself against rapid price swings. During calm market periods, spreads narrow. You have no control over this — you see only the final price Robinhood offers you, and you decide whether to accept it or cancel the trade.

Comparing Robinhood's costs to other crypto platforms

Other cryptocurrency exchanges charge differently. Some use a commission model: Coinbase, for example, charges a percentage fee (typically 1% to 2% depending on your account type) on top of the market price. Kraken charges a percentage fee that varies by trading pair. Gemini charges a flat dollar amount per transaction on smaller trades.

On a single large trade, Robinhood's spread might be lower than a competitor's commission. On frequent small trades, Robinhood's spread can add up faster because you pay it on every transaction. The total cost depends on how much you trade, which cryptocurrencies you choose, and market conditions on the days you trade.

Robinhood also does not charge fees to hold crypto in your account, to transfer crypto to a wallet outside Robinhood, or to deposit cash. Some competitors charge for these services. Robinhood's model is: no fees except the spread on trades.

Other costs and limitations on Robinhood crypto

Beyond the spread, Robinhood has other restrictions that affect your costs. You cannot transfer crypto into Robinhood from an external wallet — you can only buy crypto that Robinhood already holds. You can transfer crypto out of Robinhood to an external wallet, but only certain cryptocurrencies are supported for withdrawal.

Robinhood also does not offer margin trading on crypto (borrowing money to trade with), so you cannot amplify your trades with leverage. This is different from stocks, where Robinhood offers margin accounts. For crypto, you can only spend cash you have in your account.

If you hold crypto on Robinhood, you do not earn interest or staking rewards. Some other platforms pay you to hold certain cryptocurrencies. Robinhood does not, so the only way to make money on Robinhood crypto is to sell it for more than you paid.

How to see the spread before you sell

When you open a sell order on Robinhood, the app shows you the price you will receive if you confirm the sale right then. That price includes the spread. If you wait a few seconds and the market price moves, the price Robinhood offers you will change too — sometimes higher, sometimes lower.

You cannot see the spread broken out separately. Robinhood does not tell you "the market price is $45,000 and our spread is $100." You see only the final price: $44,900 or $45,100 or whatever Robinhood is offering at that moment. To estimate the spread, you would need to check the real-time market price on another source (like CoinMarketCap or your broker's own market data) and compare it to what Robinhood is showing you.

If Robinhood's price looks too far from the market price, you can cancel the order and wait. But there is no may provide the spread will be better later — it might be wider if volatility increases, or narrower if the market calms down.

Frequently Asked Questions

Does Robinhood charge a fee to transfer crypto out of my account?

No. Robinhood does not charge a fee to send crypto to an external wallet. However, the blockchain network itself may charge a transaction fee (called a gas fee for Ethereum, for example), which Robinhood deducts from your withdrawal. This is not a Robinhood fee — it is a cost of the blockchain network.

What if I sell crypto and when ready buy it back — do I pay the spread twice?

Yes. You pay the spread on the sale and again on the purchase. If you sell Bitcoin and buy it back seconds later at the same market price, you will have lost money to two spreads. This is why frequent trading is expensive on any platform that uses spreads.

Can I see Robinhood's spread before I place a trade?

No. Robinhood does not publish spread rates in advance. You see the price Robinhood offers you only when you open a sell or buy order. You can compare that price to real-time market data on other sites to estimate what the spread might be, but Robinhood does not tell you the number directly.

Is Robinhood's spread the same for all users?

Robinhood does not disclose whether spreads differ by account type or account age. The spread you see depends on market conditions and the cryptocurrency at the moment you trade. Two users trading the same crypto at the same time may see slightly different prices if they are trading different amounts or if the market moved between their orders.