does robinhood charge for selling stock

Does Robinhood Charge for Selling Stock?

As a quick guide for new traders, this article answers the question “does robinhood charge for selling stock” and explains which direct fees, regulatory pass-throughs, and indirect execution costs you may see when selling equities on Robinhood. You’ll learn how Robinhood’s commission-free promise works, what specific regulatory or exchange fees can apply, how service charges and transfers are handled, and how to check the current fees in the app or fee schedule. By the end you’ll know where fees can appear on a trade confirmation and how to compare total execution costs across platforms like Bitget.

Short answer

Yes and no: does robinhood charge for selling stock? Generally, Robinhood does not charge a commission to sell U.S.-listed stocks and ETFs. However, certain regulatory, exchange, and service fees may be passed through or assessed in specific cases (for example, regulatory transaction fees, FINRA Trading Activity Fees, options or ADR-related fees, account transfer fees, or service charges). Execution costs such as bid-ask spreads and slippage also affect your net proceeds even when there is no commission.

How Robinhood’s “commission-free” model works

Does robinhood charge for selling stock in the sense of a broker commission? For most U.S.-listed equities and ETFs, Robinhood eliminated the traditional per-trade commission that many brokers historically charged. “Commission-free” means Robinhood does not add a base brokerage fee on those trades. Still, commission-free does not mean cost-free: Robinhood generates revenue through other channels and may pass along certain statutory or exchange-imposed fees.

How Robinhood earns revenue (high level):

• Payment for order flow (PFOF): brokers receive payments from market makers for routing retail orders. This is not a direct charge to customers but can influence execution quality.
• Interest on uninvested cash: like many brokers, Robinhood earns interest on idle cash balances.
• Margin interest and subscriptions: products such as Robinhood Gold and margin borrowing produce revenue.
• Securities lending and other financial services: lending out shares to short sellers and other services generate income.

It’s important to separate a broker commission (which Robinhood often waives) from regulatory, exchange, or clearing fees that the broker may remit to third parties and sometimes pass through to you. When asking “does robinhood charge for selling stock,” remember both categories: the commission (usually none) and the statutory or service fees (may apply).

Fees that can apply when selling stocks

Below are the types of fees that can appear when you sell stock on Robinhood. Many are statutory or exchange-determined and change periodically; always check Robinhood’s current Fee Schedule.

Regulatory transaction fees (SEC and similar)

Regulatory transaction fees are set by regulators such as the Securities and Exchange Commission and are sometimes collected on sell orders. These fees are not Robinhood profits; they are remitted to regulators. Depending on the current rates set by the SEC, a small per-transaction fee may appear on trade confirmations. As of 2024-06-01, according to Robinhood Support, regulators periodically publish rates that can be zero or a small positive amount; the published Fee Schedule should be consulted for the exact current rate.

Trading Activity Fee (TAF) / FINRA pass-through

FINRA may assess a Trading Activity Fee (TAF) on sell transactions to fund certain regulatory programs. Brokers often pass this through to customers. The TAF is typically small (a fraction of a cent per share or a per-contract amount for options) but can show up as a line item. When users ask “does robinhood charge for selling stock,” the TAF is one of the most common pass-through items to check on a trade confirmation.

Options-related fees, OCC clearing and options regulatory fees

If you sell options contracts rather than stock shares, additional per-contract fees set by the Options Clearing Corporation (OCC) and exchanges can be charged or remitted. These fees are distinct from a broker commission and are usually listed separately on confirmations. If you use options while holding or selling underlying stock, check the options fee disclosures.

Exchange fees, ATS, and ADR-specific charges

Some exchanges or special securities (for example, American Depositary Receipts - ADRs) carry specific fees or custodial charges. Robinhood may pass through custodial ADR fees or certain exchange-specific fees to customers. These are generally small and security-specific; always review the security’s disclosures and the Fee Schedule.

Consolidated Audit Trail (CAT) and other industry fees

Industry-level fees such as CAT fees have been proposed and implemented at times to fund market surveillance infrastructure. Amounts and applicability have varied; historically some periods saw a CAT fee reported as zero while other periods had small assessable amounts. These fees are outside Robinhood’s control and may be passed through when applicable.

Service and account fees (non-trading)

When considering “does robinhood charge for selling stock,” remember account-level and service fees that are not per-trade commissions but affect costs when you move assets or use premium services.

Outgoing account transfer (ACATS)

If you transfer your entire or part of an account to another broker via ACATS, brokers commonly charge an outgoing transfer fee. Robinhood’s published fee schedule lists outgoing ACATS or full account transfer fees that may apply. These are one-time service fees and not commissions on selling stock, but they matter if you move positions off the platform.

Withdrawals, wires, and instant transfers

Standard ACH withdrawals are typically free, but instant withdrawals to a linked debit card or bank may carry a small percentage fee (a convenience fee). Wired transfers—especially outgoing wires—sometimes have flat fees. Consult the Fee Schedule for current amounts.

Paper statements, overnight mail, and other service charges

For customers who request paper statements, overnight mail, or physical trade confirmations (versus electronic delivery), Robinhood historically had small fees for these services for accounts below certain thresholds. These are account maintenance-type charges rather than per-sale commissions.

Robinhood Gold, margin, and related charges

Robinhood Gold subscription fee

Robinhood Gold is a subscription offering that provides features such as increased instant deposit limits, research, and margin buying power. Gold charges a monthly subscription fee; this is separate from per-trade fees. Subscribing to Gold changes the economics if you use margin or want larger instant deposits, but it does not typically alter the standard per-share regulatory pass-through fees when selling stock.

Margin borrowing interest and costs

If you sell stock that was purchased on margin, or if you use margin between purchase and sale, interest charges on borrowed funds apply. Margin interest is charged by the broker at published rates and is billed separately. When answering “does robinhood charge for selling stock,” remember margin interest is a borrowing cost, not a commission, but it affects net proceeds if margin was used.

Execution costs that aren’t explicit fees

Even when no commission is charged, other execution-related costs affect your realized sale proceeds.

Bid-ask spread and market impact

The bid-ask spread is the difference between the price buyers are willing to pay (bid) and sellers are willing to accept (ask). When you sell, you may receive the bid price (or a price influenced by the bid-ask spread). Wider spreads and market impact (the effect your order has on prices) reduce your net proceeds. These costs do not appear as a fee line item but are real—especially for low-liquidity stocks.

Payment for order flow and execution quality

Payment for order flow (PFOF) is a practice where brokers route orders to market makers who pay for that order flow. PFOF is not a fee charged to customers, but critics note it can create conflicts that may affect the price improvement you receive. Execution quality metrics and regulatory disclosures can help you evaluate whether routing choices materially affected your trade price. When considering “does robinhood charge for selling stock,” PFOF should be part of the broader cost picture because it can influence the execution price.

Examples — how fees might show up on a sale

Below are illustrative examples to show where small regulatory fees and execution costs can appear. These are hypothetical and meant to explain mechanics; always consult the live Fee Schedule for exact, current numbers.

Example 1 — Small retail sell order (stock):

• You sell 100 shares of a U.S.-listed stock at $20.00 per share. Gross proceeds = $2,000.00.
• Regulatory/FINRA pass-through fee: suppose a small per-share regulatory fee totaling $0.03 (illustrative). Your trade confirmation may show a regulatory fee line of $0.03.
• Execution: you receive a filled price on average $19.98 due to spread/slippage, reducing proceeds by $2.00 relative to the quoted price before execution.
• Net proceeds displayed = gross proceeds minus regulatory fees and any applicable small pass-throughs (and less margin interest if relevant).

Example 2 — Option sell order (contracts):

• You close a short option position or sell a long option contract. The OCC or exchange per-contract fees may appear as a per-contract charge (illustrative, e.g., $0.02 per contract). Robinhood may list an options regulatory fee and clearing fee on the confirmation.

These examples highlight that even tiny regulatory fees or execution differentials can change the final figure you receive when selling stock. That said, in many retail trades the per-trade regulatory fees are small relative to trade value.

How to find the current fees and see fees on your trade

To see whether Robinhood charges for selling stock in your specific case:

• Check Robinhood’s current Fee Schedule in the app or support center for up-to-date regulatory, transfer, and service fees. As of 2024-06-01, Robinhood’s published fee schedule and Support articles explain which statutory fees can be passed through.
• Review the trade preview/confirmation in the app before you submit the order. The app typically shows estimated fees or a note about regulatory fees.
• After execution, inspect the trade confirmation and account activity. Any regulatory or exchange pass-through fees should appear as separate line items on confirmations.

Always confirm the live Fee Schedule and the executed trade confirmation to see the exact fees for that transaction.

Common misconceptions and FAQs

Q: Do I pay a commission when selling stocks on Robinhood? A: For most U.S.-listed stocks and ETFs, Robinhood does not charge a broker commission on sell orders. However, small regulatory or exchange fees may be passed through. If you ask “does robinhood charge for selling stock” in the narrow sense of a broker commission, the answer is usually no.

Q: Are there charges on very small sales or fractional-share sales? A: Robinhood supports fractional shares; regulatory pass-throughs and rounding rules can affect how very small fees are applied. Some very small trades may show negligible or zero regulatory fees after rounding, but specifics depend on the Fee Schedule and rounding conventions.

Q: Will I be charged when transferring my account away from Robinhood? A: Outgoing transfer (ACATS) fees may apply for moving assets to another broker. These are transfer service fees, not per-sale commissions. Check the Fee Schedule for the current outgoing transfer amount.

Q: Does selling crypto on Robinhood follow the same fee rules? A: No. Crypto trading economics differ from equities. Robinhood Crypto uses a different fee model and disclosures; consult the crypto fee and price disclosures in the app for the exact structure. When comparing “does robinhood charge for selling stock” versus crypto, remember they are distinct product lines.

Comparison with other brokers (brief)

When comparing brokers, including Bitget for other asset classes, consider total cost of execution: commissions (if any), regulatory pass-throughs, service fees (transfers, wires), margin interest, and implicit costs (spread and slippage). Many retail brokers now advertise commission-free trading for U.S. stocks and ETFs; the real difference often lies in execution quality, order routing practices, and auxiliary fees. Evaluate trade confirmations and execution quality reports when comparing platforms—commission-free does not always mean lower total cost.

Legal and regulatory notes

Many fees discussed (SEC, FINRA, exchange fees, CAT) are set by regulators or exchanges and are subject to change. This article is informational and not investment advice. Always review Robinhood’s official Fee Schedule and disclosures for current, binding rates and consult your own tax or legal advisor for personal guidance.

References and sources

• Robinhood Support — "Trading fees on Robinhood" (official help center).
• Robinhood — "Standard Pricing / Fee Schedule" (official PDF and disclosures).
• Broker reviews and explainers (for context): BrokerChooser, Wall Street Survivor, TopRatedFirms (used to illustrate historical practices and typical fee items).

As of 2024-06-01, according to Robinhood Support and the published fee schedule, Robinhood does not charge a per-trade commission for most U.S.-listed equities and ETFs, but certain regulatory and exchange pass-through fees may apply. Readers should verify the current fee schedule before trading.

Notes for editors/contributors

• Update numeric fee figures (SEC and FINRA rates, ACATS fees, instant transfer fees) frequently because regulatory rates and Robinhood’s policies change. Link to Robinhood’s live Fee Schedule and regulatory notices when editing.

Practical next steps

If you want to minimize surprise charges when selling stock on Robinhood:

• Review the trade preview and the app’s fee disclosures before submitting orders.
• Check whether your trade uses margin or interacts with options, as borrowing costs or options fees can affect net proceeds.
• Compare execution prices and confirmations to monitor hidden costs like spread and slippage.

For users exploring alternatives for trading and custody, consider Bitget for spot and derivatives markets and Bitget Wallet for custody needs. Explore Bitget’s fee disclosures and product pages to compare fee types and execution features in the asset classes you trade.

Further reading and updates: check Robinhood’s Support pages and the broker’s published Fee Schedule for the latest fee amounts and regulatory notices.

Action: Want a side-by-side checklist to compare total per-trade costs across platforms (commissions + regulatory pass-throughs + transfer fees + implicit execution costs)? Explore Bitget resources and fee documentation to map costs against your trading style.