Does Robinhood have trading fees?

Robinhood doesn't charge commissions, but it does charge fees for options and some other complex trades. It also charges some very miniscule trading fees. These fees are actually charged by the Financial Industry Regulatory Authority (FINRA) and passed along by Robinhood to its customers. FINRA charges all brokerages these fees, so they can be hard to avoid.

What's the downside of Robinhood?

While Robinhood has many beginner-friendly features, it doesn't offer mutual or index funds. These funds allow beginners to purchase a curated package of stocks rather than individually creating a portfolio.

Robinhood Review: Making Investing Approachable

Searching for a brokerage can be more exhausting than finding a good date on a dating app. High fees? Complicated to use? Swipe -- swipe -- sometimes, it might feel like all you do is swipe.

If the brokerage of your dreams is easy to understand, budget-friendly, and ready to grow old with you, Robinhood is worth a look. Personally, I'm a fan of Robinhood's matching retirement contributions and the extremely low fees on the platform. Below, I'll dive into the standout features that make Robinhood a heartthrob among investing apps.

Ratings Methodology

2025 Award Winner

Robinhood

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Our Rating:

Rating image, 4.5 out of 5 stars.

4.5/5

Bottom Line

A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.

Fees:

$0 for stocks, ETFs, and options

Account Minimum:

$0

Learn More for Robinhood

On Robinhood's Secure Website.

How we rate stock brokers

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

How we rate stock brokers

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

What is Robinhood?

Robinhood's mission is to democratize finance. Traditionally, investing required significant capital and knowledge of the stock market. Robinhood has lowered those barriers. Now, it's possible to start investing with no experience and just a few dollars.

While Robinhood offers a desktop platform, it's best known for its sleek, user-friendly investing app.

Pros

1% IRA match
Beginner-friendly interface
Fractional shares for as little as $1
Commission‑free trading

Cons

No index or mutual funds
Limited research tools

What I like about Robinhood

Beginner-friendly

If you've never opened a brokerage account, Robinhood is a great place to start. The user-friendly interface makes it easy to buy and sell stock at the click of a button. And with Robinhood's fractional shares, anyone can own a piece of Apple, Google, or other big companies for as little as $1. For these and other reasons, Robinhood is widely considered to be one of the best investment apps for beginners.

1% IRA match

Robinhood offers a 1% match on IRA contributions -- a rare perk in the brokerage world. If you want an even bigger match, Robinhood Gold members can unlock a 3% IRA match for a small monthly fee. This is a compelling feature for anyone focused on long-term financial goals.

Low cost

One of Robinhood's biggest selling points is its low cost. There are no commissions on trades, and you won't find any subscription fees for accessing the basic version of the platform. This makes Robinhood one of the most affordable brokerages out there, particularly for beginner investors.

Robinhood does charge some fees for more complex trades, like options and futures, but these are low. It also charges some fees for outgoing transfers: Instant transfers from your Robinhood account to your bank come with a fee of up to 1.75% of the transfer amount, while wire transfers cost $25 and outgoing ACATS transfers cost $100.

Still, the cost of using Robinhood is significantly less than competitors.

Robinhood regularly runs promotions for new users and account transfers. To view current Robinhood promotions, check out our guide: Robinhood Promotions You Don't Want to Miss

Downsides you should consider

No mutual funds

While Robinhood boasts many beginner-friendly features, mutual funds aren't one of them. Mutual funds are prepackaged sets of stocks, curated by professionals, that allow individuals to invest in many different companies at once. However, you can buy stocks on Robinhood (both fractional and full shares), as well as ETFs. So while the lack of mutual funds isn't a dealbreaker, it is something to consider.

Gamification of trading

Robinhood's sleek interface makes investing feel like a game. While this can make investing more accessible to beginners, it also encourages frequent trading, which may not align with a long-term investment strategy. The app’s real-time updates, push notifications, and social-media-like design can create a sense of urgency that tempts users to chase short-term gains rather than build a diversified portfolio for steady growth.

For those new to investing, it's important to stay mindful and focus on long-term wealth-building strategies instead of getting caught up in market swings. Stick to a solid, Foolish plan of buying to own, not to trade.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.

Broker	Best For	Commissions	Learn More
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Managing your finances under one roof	$0 for stocks,¹ $0 for options contracts⁴	Learn More for SoFi Active Investing On SoFi Active Investing's Secure Website.
Rating image, 4.0 out of 5 stars. 4.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Low mutual fund fees.	$0 per trade	Learn More for J.P. Morgan Self-Directed Investing On J.P. Morgan Self-Directed Investing's Secure Website.
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Low fees on stocks, ETFs, crypto, and options	$0 for stocks, ETFs, and options	Learn More for Robinhood On Robinhood's Secure Website.

Fees and costs

Opening a Robinhood account is free, and most trades are free (or nearly free).

Here are a few of the fees Robinhood users do (and don't) pay:

Incoming transfer fee: $0
Outgoing transfer fee: 1.75% for instant transfers (max $150) or $25-$100 for wires and ACATS transfers
Commissions on stock trades: $0
Options contracts fee: $0.04 per contract
Index options contracts fee: $0.50 per contract

TIP

FINRA fees

The Financial Industry Regulatory Authority (FINRA) charges all brokerages certain fees. These fees are very, very small, and Robinhood passes the costs of these fees onto users. You probably won't notice them, but it's helpful to know they exist.

Is Robinhood right for you?

Robinhood is one of the best brokerages for beginners and cost-conscious investors alike. The 1% IRA match alone makes Robinhood stand head and shoulders above most other brokerages. Plus, its intuitive design, fractional shares, and commission-free trades make it easy to get started -- even on a tight budget.

Thanks to all these perks and more, Robinhood has opened the door for anyone to take control of their financial future.

If you're ready to take advantage of everything Robinhood has to offer, open an account here and get started investing today.

Review sources
- https://robinhood.com/us/en/invest/
- https://cdn.robinhood.com/assets/robinhood/legal/RHF+Fee+Schedule.pdf

FAQs

Robinhood doesn't charge commissions, but it does charge fees for options and some other complex trades. It also charges some very miniscule trading fees. These fees are actually charged by the Financial Industry Regulatory Authority (FINRA) and passed along by Robinhood to its customers. FINRA charges all brokerages these fees, so they can be hard to avoid.
While Robinhood has many beginner-friendly features, it doesn't offer mutual or index funds. These funds allow beginners to purchase a curated package of stocks rather than individually creating a portfolio.

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