Robinhood is a U.S. brokerage and financial app for retail customers. Customers trade stocks, exchange-traded funds, options, and cryptocurrency in a browser or the mobile app. Robinhood Financial LLC takes the securities orders, and Robinhood Securities, LLC clears them.
U.S. stocks, ETFs, and options on those products carry a $0 commission. The firm still receives payment for order flow, Gold fees, and margin interest. Regulatory charges and some contract fees still apply.
How is Robinhood structured as a brokerage platform?
Robinhood Financial LLC is the broker-dealer that accepts customer securities orders. It is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. Robinhood Securities, LLC clears those trades with the market clearing organizations.
Securities are held in segregated custody accounts. Uninvested brokerage cash can move to program banks through the cash sweep program. Robinhood states that it is not a bank, and that those banks pay interest on swept cash.
Cryptocurrency orders go through Robinhood Crypto, LLC, NMLS ID 1702840, which holds a New York virtual currency license. Balances there are not covered by SIPC or FDIC insurance. Futures and event contracts are offered through Robinhood Derivatives, LLC. Managed portfolios are offered through Robinhood Asset Management, LLC, an SEC-registered investment advisor.
How do Robinhood trades and order routing function?
Robinhood trades and order routing function by sending retail orders to market-making firms. When a customer submits an order, the system routes it to third-party market makers instead of a public exchange the customer picks. This structure uses payment for order flow, where market makers pay the broker for order volume. The market makers execute the trades at or within the national best bid and offer.
The system supports market orders, limit orders, and stop-limit orders. Market orders execute at the price then available in the market. Limit orders stay open until the security reaches the customer’s stated price. Order types are covered in Market vs. Limit Orders.
The firm is legally bound by SEC rules to seek best execution for routed orders. It publishes quarterly reports on routing destinations and payments received.
What fees and cost structures does Robinhood apply?
Robinhood applies a $0 commission to U.S. stocks, ETFs, and options on those products, then adds regulatory and contract fees. The options, SEC, and trading activity fees in this section are from Robinhood’s trading fees page.
Since January 10, 2025, Robinhood collects $0.04 on each options contract for options regulatory and clearing costs. Robinhood says that $0.04 figure can differ from the amount it remits to the exchanges. Index options add a contract fee of $0.50, or $0.35 with Gold, plus an exchange fee that depends on the symbol. In Robinhood’s example, 12 SPXW contracts with a premium under $1 cost $12.48 without Gold and $10.68 with Gold. Starting on or after October 15, 2026, a customer designated Professional pays $0.50 for each options contract bought or sold.
Sell orders can also pass through an SEC fee and a FINRA trading activity fee. As of April 4, 2026, the SEC fee is $20.60 per $1 million of principal on sells. Robinhood rounds that fee up to the nearest penny. Robinhood does not pass that SEC fee through on equity sales of $500 or less. Stock and ETF option sells incur the SEC fee at any sale size. They also incur the trading activity fee at any sale size when that fee is not paused. Index option orders are not charged either fee.
As of January 1, 2026, the trading activity fee is $0.000195 per share on equity sells. On options sells it is $0.00329 per contract. The fee rounds to the nearest penny and caps at $9.79 on one execution. Split fills can total more than that cap. Sales of 50 shares or less are excluded when the fee is in effect. FINRA paused the trading activity fee from October 1, 2026 through December 31, 2026. Robinhood does not charge it in that window.
Margin interest is one rate on the full settled debit. The tier follows the size of that debit. As of September 17, 2026, Robinhood lists these rates.
- Up to $50,000, the rate is 5.25%.
- From $50,000 up to $100,000, the rate is 5.05%.
- From $100,000 up to $1 million, the rate is 4.75%.
- From $1 million up to $10 million, the rate is 4.5%.
- From $10 million up to $50 million, the rate is 4.45%.
- At $50 million and above, the rate is 4.20%.
Gold leaves the first $1,000 of margin uncharged. Interest applies only above that $1,000, at the tier for the full debit. On a $3,000 debit in the 5.25% tier, Robinhood’s example is $0.44 per day. After the Gold waiver, that example is $0.29 per day. Robinhood Gold costs $5 per month or $50 per year after a 30-day trial. Opening a Robinhood Gold Card skips that trial and requires the $50 annual plan. Gold members with the High-Yield Cash program can earn 3.6% APY on eligible brokerage cash as of September 17, 2026. A margin debit means there is no cash balance earning that rate.
The Robinhood Gold Card is a credit card from Robinhood Credit, Inc., issued by Coastal Community Bank. Accounts opened before July 1, 2026 are not charged a foreign transaction fee. Accounts opened on or after that date pay 3% on foreign-currency purchases.
Who can open a Robinhood account and what are the limits?
Opening a Robinhood brokerage account requires a U.S. legal resident who is at least 18. The applicant needs a Social Security number and a U.S. residential address. Registration includes identity checks under Know Your Customer rules. The broker does not open accounts for non-U.S. residents who lack a valid visa.
Instant buying power is capped separately from the transfer ceiling. Robinhood’s Instant Deposit limits scale with prior-day portfolio value, excluding pending deposits. Portfolio multiples round down to the nearest $1,000. Without Gold, a portfolio under $1,000 can get up to $1,000 instantly. A larger non-Gold portfolio can get up to $1,000 or twice that value, whichever is higher. With Gold, a portfolio under $2,000 can get up to $5,000. A larger Gold portfolio can get up to $5,000 or three times that value, whichever is higher. Individual retirement accounts stay at up to $1,000 at any portfolio size, with or without Gold. Robinhood treats these amounts as maximums that account status can lower. Cash above the instant cap is scheduled within 5 business days. Not every account is approved for margin.
Standard ACH deposits are listed up to $500,000, and ACH withdrawals up to $250,000, with no Robinhood fee. ACH deposits can take up to 5 business days. ACH withdrawals show as sent in 1 day on Robinhood, then follow the receiving bank. Wire withdrawals cost $25, except for Robinhood Concierge, and the wire amount varies by account from $50,000 to unlimited. Debit-card withdrawals are listed up to $15,000, and real-time payment withdrawals up to $50,000. Both cost 1.75%, with a $1 minimum and a $150 maximum. Those ceilings are specific to the account and add up across Robinhood accounts.
What tradeoffs and compliance risks does Robinhood carry?
The main custody limit is SIPC coverage if the brokerage fails. SIPC covers missing securities and cash up to $500,000, including up to $250,000 in cash. It does not cover a decline in market prices. Cryptocurrency held at Robinhood Crypto, LLC sits outside that SIPC coverage.
Margin adds a liquidation constraint. Robinhood Financial states that it may sell securities, with or without prior approval, if equity falls below maintenance requirements. Those requirements vary by security and can change without prior notice. The customer still owes the margin debit.
Orders go to market makers rather than to an exchange the customer selects. In past periods of extreme volatility, clearinghouses raised capital requirements and Robinhood restricted trading in some securities. That episode is a constraint on access during stress, separate from SIPC coverage of a failed broker.
Common questions
Does Robinhood charge contract fees for options?
Stock and ETF options have a $0 Robinhood commission and a $0.04 regulatory fee per contract. Index options add $0.50 per contract, or $0.35 with Gold, plus exchange fees that vary by symbol. Customers designated Professional pay $0.50 per options contract starting on or after October 15, 2026.
How does the retirement contribution match work?
Self-directed IRAs earn 1% on eligible contributions, or 3% with Gold at $5 per month. Transfers and old 401(k) rollovers earn 1% with or without Gold. Robinhood Strategies IRAs do not earn the contribution match. A withdrawal before 5 years can trigger an early removal fee. That fee applies when the remaining balance is below the matched deposit plus the match. Gold members must keep Gold for 1 year after the first Gold match to keep the full Gold match.
Is cryptocurrency held on Robinhood insured?
Cryptocurrency at Robinhood Crypto, LLC is not insured by SIPC or the FDIC. That entity holds a New York virtual currency license and is separate from the securities broker-dealer. A price decline in those assets is not an SIPC claim.
