Robinhood

From a regulatory standpoint, Robinhood operates through multiple licensed entities, each overseen by U.S. regulators. Brokerage services are provided by Robinhood Financial LLC (RHF) and Robinhood Securities LLC (RHS), both registered broker-dealers and members of SIPC. This ensures protection of securities up to $500,000, including a $250,000 cash limit, in the event of broker failure, though this does not guard against investment losses.

Portfolio management is offered via Robinhood Asset Management LLC (RAM), an SEC-registered investment advisor. For derivatives, Robinhood Derivatives LLC (RHD) is registered with the CFTC and is a member of the NFA, but it is not FDIC- or SIPC-insured.

On the digital assets side, Robinhood Crypto LLC (RHC) is licensed by the New York State Department of Financial Services (NMLS ID: 1702840) to engage in virtual currency activities. However, cryptocurrencies are neither FDIC insured nor SIPC protected, a key limitation that traders should be aware of.

For payments and cash management, Robinhood Money LLC (RHY) operates as a licensed money transmitter (NMLS ID: 1990968). Funds in Robinhood’s Spending Account and Cash Card, issued via Sutton Bank (FDIC member), may qualify for FDIC insurance up to $250,000, subject to applicable limits.

Additional services include the Robinhood Gold Card, issued by Coastal Community Bank under Visa licensing, and the Robinhood Gold subscription program offering premium services.

In our Robinhood review, we note that the firm’s regulatory coverage is broad, with oversight from the SEC, FINRA, CFTC, NFA, and state regulators. While protections vary by product, traditional securities enjoy SIPC coverage and cash accounts may be FDIC insured, cryptocurrency and derivatives accounts fall outside these safety nets.

Overall, Robinhood’s security framework provides strong regulatory alignment for traditional brokerage and cash management products but requires careful attention from users when trading high-risk instruments like options and crypto.

Licensed by / Regulated under:

• SEC & FINRA – Robinhood Financial LLC & Robinhood Securities LLC (broker-dealers, SIPC members) 
• SEC – Robinhood Asset Management LLC (investment advisor) 
• CFTC & NFA – Robinhood Derivatives LLC (futures commission merchant) 
• NYDFS – Robinhood Crypto LLC (virtual currency license, NMLS ID: 1702840) 
• NMLS ID: 1990968 – Robinhood Money LLC (money transmitter) 

Protections:

• SIPC coverage up to $500,000 for brokerage accounts (including $250,000 cash). 
• FDIC insurance up to $250,000 via Sutton Bank for Spending & Cash Card accounts. 
• No FDIC/SIPC protection for crypto and derivatives.

Core Trading Costs

Robinhood’s big draw remains its $0 commission model for U.S.-listed stocks, ETFs, and options. You won’t pay to open or maintain an account, which keeps entry costs low. That said, option traders should know that index contracts come with a $0.50 fee, or $0.35 if you’re a Robinhood Gold subscriber. On top of that, every options contract has a $0.04 regulatory clearing fee attached. So while trades feel “free,” small add-ons still exist once you look closer.

Regulatory Pass-Throughs

Like any U.S. broker, Robinhood passes along industry-standard charges from regulators. These include the FINRA Trading Activity Fee (TAF), currently $0.000166 per share on equity sales and $0.00279 per options contract, capped at $8.30 per trade. Equity sales of 50 shares or less are waived. At the moment, the SEC fee is set at $0 (as of May 14, 2025), which further lowers costs for now. These are non-negotiable charges, but Robinhood’s handling of them is in line with peers.

CAT Fees

Starting July 2025, Robinhood will also pass along Consolidated Audit Trail (CAT) fees. These are tiny, $0.0022 per options contract and $0.0000265 per NMS equity share, but worth noting for traders running high volumes. They’re part of the broader market oversight infrastructure, not a Robinhood-specific markup.

ADRs

For those trading foreign stocks through American Depositary Receipts (ADRs), the issuing banks may charge custodial fees ranging from $0.01 to $0.03 per share. Robinhood simply passes these on. It’s a standard cost, but something international investors should budget for.

Funding & Transfers

Day-to-day account movement is where Robinhood adds some friction. Incoming wires are free, but outgoing wires cost $25, and transferring your account out via ACATS will set you back $100. Instant bank transfers or debit card funding come with a fee of up to 1.75% (minimum $1, capped at $150). For casual investors, this may not matter much, but active movers should keep these costs in mind.

Margin Rates

Borrowing on margin comes with a tiered interest structure. Rates start at 5.50% for balances up to $50k, gradually dropping to 4.45% for balances above $50 million. While these rates are competitive compared to many retail brokers, the benefit is most noticeable for larger accounts with consistent margin use.

Managed Portfolios

Through Robinhood Asset Management, clients can opt for automated portfolios at an annual advisory fee of 0.25%. What stands out is the integration with Robinhood Gold, for Gold subscribers, fees only apply to the first $100,000 of assets, with no charge beyond that. For cost-conscious investors, especially those with higher balances, this makes the managed service more appealing compared to traditional robo-advisors.

Our Take

In our Robinhood review, the platform keeps trading costs low for most users. Stocks and ETFs stay commission-free, while mandatory regulatory pass-throughs and modest options fees are the main extras. The real cost pressure comes from funding/transfer fees and margin borrowing, both of which can add up depending on your trading style. Still, compared to Tier 2 brokers, Robinhood’s fee model remains lean, with Robinhood Gold providing extra savings for options traders and managed account users.


Robinhood Fee Snapshot

Quick Takeaway:

Robinhood keeps trading cheap for most users with $0 commissions on stocks and ETFs. Options traders should factor in clearing and index fees, while active movers will feel the pinch on wires and ACATS transfers. Margin borrowers benefit from tiered rates, and managed portfolios are competitively priced, especially if paired with Robinhood Gold.

Fees tell part of the story, but spreads often reveal the hidden cost of trading. Let’s dig into how Robinhood handles spreads across its account options, and what that means for active investors.

Spread Fees at Robinhood

When it comes to spreads, Robinhood takes a slightly different approach than many traditional brokers. Instead of charging direct commissions, their model often incorporates costs into the bid-ask spread, particularly on crypto trades.

For crypto orders, spreads depend on how orders are routed:

Market Maker Routing (Default) – Orders are sent to third-party liquidity providers (market makers). As of July 24, 2025, Robinhood receives about $0.85 for every $100 of notional crypto order volume. This revenue is included within the spread.

Smart Exchange Routing – Available for select cryptocurrencies, this setting routes orders across partner exchanges to secure the best available price. While no rebate is paid to Robinhood here, fees apply on a sliding scale from 0.10% to 0.85%, with lower costs for higher trading volumes.

In practical terms, this means the spread cost can vary by asset, order type, and routing setting. For example, a $100 crypto buy order with a spread of 0.86% would see $0.85 flow back to Robinhood when routed through market makers.

For stocks and options, spreads follow the same bid-ask mechanics that drive all U.S. markets. Orders are generally filled at either the ask (for buys) or the bid (for sells), though traders can also attempt execution at the midpoint (mark price) for potentially better value, though with no guarantee of a quick fill.

Key takeaway:

Robinhood doesn’t publish fixed spread costs. Instead, spreads are determined by market liquidity, routing choices, and instrument type. For the most accurate, up-to-date details, traders and investors will need to review the order screen within the Robinhood trading platform, which shows the bid, ask, and mid prices in real time.

While spreads grab attention, overnight positions bring another layer of cost into play. To get the full picture of trading expenses at Robinhood, we now turn to how swap fees are applied across its different account types.

Swap Fees at Robinhood: Flexible Structures with Conditions

Robinhood handles swap fees in a way that sets it apart from many traditional multi-asset brokers. Swaps, in the classic sense, are financial contracts where two parties exchange cash flows, often tied to interest rates, currencies, or commodities. They’re widely used in institutional markets for hedging risk or managing borrowing costs.

At Robinhood, however, retail traders don’t typically encounter traditional “swap fees” in the way they would on forex or CFD platforms. Instead:

Interest Rate Swaps and Related Products – These exist in the broader financial system, but they are not a direct product available to most retail clients on Robinhood Financial.

Crypto Trading and Overnight Costs – For crypto and securities trading, Robinhood’s costs are built into spreads, routing models, and margin borrowing rates rather than explicit swap charges.

Risk Management Context – The idea of swaps is still relevant for traders to understand, since swaps are essentially about managing variable vs. fixed costs. In Robinhood’s ecosystem, this role is filled more by its margin interest rates (starting around 5.5% depending on borrowing size) than by separate overnight swap fees.

Key takeaway: If you are searching for “swap fees at Robinhood,” what you’ll find instead is a different cost structure. Robinhood does not charge the standard overnight swap/rollover fees common in forex or CFD trading. Instead, costs are reflected in spreads, regulatory pass-through fees, and margin interest. Traders should check the Robinhood platform or fee schedule for exact details on any charges tied to their specific instruments.

Trading costs don’t stop at spreads or swaps, how quickly and affordably you can move money in and out of your account is just as important. Let’s take a closer look at Robinhood’s approach to deposits and withdrawals, from fees to processing times.

From our analysis, Robinhood keeps things simple when it comes to funding and withdrawing. Costs are transparent, processing times are clearly stated, and everything is managed directly within the Robinhood login portal under “Transfers.” Here’s how the setup works in practice:

Deposits

Standard ACH (bank transfer): Free of charge, though it can take up to 5 business days for funds to clear. Limits reset daily at 7 PM ET.

Instant Deposits: A portion of pending ACH transfers can be made available immediately for trading. Final settlement follows standard ACH timelines.

Debit Card Transfers: Typically show up in about 30 minutes, though timing depends on the bank. Reset at midnight each day.

Instant Bank Transfers: Money can land in your Robinhood account within minutes with no fees, provided your bank is eligible via Plaid.

Recurring Deposits: Robinhood supports scheduled deposits (weekly, biweekly, monthly, or quarterly), helping traders automate their funding.

Direct Deposit: Paychecks and government benefits can be directed straight into Robinhood investing or spending accounts.

FDIC Coverage for Cash Card/Spending Accounts: Funds stored at Sutton Bank are insured up to $250,000, although balances don’t earn interest.

Withdrawals

Standard ACH (outgoing): Free, but processing takes up to 5 business days. Limits reset daily at 7 PM ET.

Instant Bank Transfer/Debit Card Withdrawals: Typically processed in ~10 minutes, but subject to a 1.75% fee (min $1, max $150). Limits reset daily at midnight.

Wire Transfers:

• Incoming wires are free and generally arrive the same business day if sent before 4 PM ET. 
• Outgoing wires cost $25 and usually process within one business day. 
• Not supported for retirement, spending, or managed accounts, and international wires aren’t available. 

Managed Accounts: Withdrawals can take longer (up to 5 days) if assets need to be sold first, since liquidations can take 2-3 business days.

Availability & “Withdrawable Cash”

Not every dollar in your account is immediately available to withdraw. Here’s what can limit access:

Proceeds from equity or options sales follow T+1 settlement rules.

Pending deposits, margin requirements, or collateral tied to options/futures may reduce what you can withdraw.

Referral stock proceeds must remain in the account for at least 30 days before they can be accessed.

Withdrawing to a new bank account within 60 days of a deposit may trigger extra verification steps.

Standard ACH transfers can sometimes be canceled, but card or instant withdrawals cannot.

Bottom Line

Robinhood’s payment methods balance low-cost ACH transfers with the option of fast but fee-based instant rails. Wires are a solid choice for speed, though only outgoing transfers incur a flat $25 fee. And for those using Robinhood’s spending or Cash Card accounts, balances carry FDIC insurance up to $250,000 at Sutton Bank. Overall, Robinhood offers enough flexibility to cover both patient investors and those who prioritize speed of access.

From our research desk’s Robinhood review, they cover the core markets most self-directed traders expect, plus a few advanced products. Here’s the streamlined view.

Stocks & ETFs

U.S. stocks and ETFs, with 24/5 trading on hundreds of popular tickers. Trading via the Robinhood login on mobile, web classic, or Robinhood Legend (desktop web).

Commission-free for self-directed equity/ETF trades; standard regulatory/venue fees can still apply.

Why it matters: Wider extended hours than many Tier-2 brokers.
Keep in mind: Trading hours differ by symbol, check the instrument details in-app.

Options

Equity/ETF options trade commission-free; index options use a per-contract fee.

Tools include a strategy builder (single- or multi-leg), simulated returns, and an integrated options chain in Legend.

Why it matters: Equity options costs are competitive for active retail flow.
Keep in mind: Index options incur contract fees; options carry elevated risk.

Futures

Listed contracts across index, energy, currency, metals, and crypto, e.g., /ES, /MES, /NQ, /MNQ, /YM, /RTY, /M2K, with nearly 24-hour sessions (commonly 6 PM-5 PM ET).

Low published commissions relative to fixed-price competitors; exchange, NFA, and any data subscriptions still apply.

Why it matters: Broad symbol set plus around-the-clock access.
Keep in mind: All-in cost includes exchange/NFA fees; verify tick size and multipliers before trading.

Cryptocurrencies

Buy/sell a wide list (e.g., BTC, ETH, SOL, DOGE, ADA, AVAX, LINK, LTC, XRP, SHIB, and more).

Staking for ETH and SOL from as little as $1; crypto transfers supported in and out (no Robinhood transfer fees; network fees apply).

Order routing choices in-app (smart exchange routing or market maker routing); Legend uses smart exchange routing.

Why it matters: Broad coin access, staking, and transfers in one place, with a low average trading-cost claim in their materials.
Keep in mind: Availability can vary by state; spreads/fees depend on routing and volume.

Retirement (IRAs)

Inside IRAs, you can trade stocks, ETFs, and (for qualified traders) options.

Managed IRAs via Robinhood Strategies exist, but that’s an advisory service, not a separate asset class.

Bottom Line

Robinhood brings U.S. equities/ETFs, options, futures, and crypto under one roof, adds 24/5 equity/ETF access, and keeps futures trading nearly 24 hours. That’s a wider reach than many mass-market peers, though contract, venue, and state-level rules still apply. As always, verify symbol-specific hours, fees, and eligibility in the platform.

Knowing what you can trade is only half the picture, how far your capital can stretch is just as important. Let’s dive into Robinhood’s leverage framework and see how it varies across assets and account types.

From our research desk’s Robinhood review, leverage is available through two distinct paths: classic securities margin investing and the newer crypto perpetual futures. Each works differently and carries specific costs and risk controls.

1) Securities Margin (stocks/ETFs/options via Robinhood login)

• Eligibility & minimums: You must apply and be approved; a $2,000 minimum portfolio value is required to access margin. 
• Rates (variable): Tiered by borrowed amount: 5.5% (≤$50k), 5.30% ($50k-$100k), 5.00% ($100k-$1m), 4.75% ($1m-$10m), 4.70% ($10m-$50m), 4.45% (>$50m). Interest accrues daily on settled margin balances. 
• Gold benefit: With Robinhood Gold, the first $1,000 of margin is included; interest applies only above that amount. 
• Risk note: They can change maintenance requirements at any time; if equity falls below minimums, you may face a margin call or forced liquidations. 

2) Crypto Perpetual Futures (rolling out)

• Max leverage: Up to 3× for eligible customers (subject to an onboarding/appropriateness assessment). 
• Margin floors: Initial margin 20%, maintenance 10%, close-out 5% of position notional (recalculated every 15 minutes off the mark price). 
• Liquidation fees (venue-charged): 0.05% on partial liquidation; 1% on full liquidation. 
• Funding & settlement: P&L settles every 15 minutes; funding occurs every 8 hours (you may pay or receive). 
• Contracts live 24/7: BTC, ETH, SOL, XRP perps (USD-settled); minimum order size $10; max leverage 3×. EUR and USD can serve as margin per their rules. 
• Access: Perps are still being rolled out; availability depends on region and passing the assessment. 

3) Indirect Leverage (products you can trade)

• You can also access leverage via listed leveraged ETFs (e.g., 2× single-stock/ index funds). These embed leverage inside the product rather than using your account’s margin line. 

Our take

• Conservative caps on perps (3×) help limit tail risk versus high-multiple crypto venues, positive for newer traders, though less flexible for high-leverage strategies. 
• Margin rate tiers are competitive at larger balances and the Gold $1,000 buffer reduces carry on small borrowings. 
• Risk controls (15-minute margin recalcs and defined liquidation thresholds) are clear, but they also mean positions can be trimmed quickly if volatility spikes. 

If you plan to borrow, model your all-in cost (rate tier, funding on perps, and potential liquidation fees) and set price alerts/stop orders. As with any leverage, losses can exceed cash invested.