Robinhood does not have a spread list. Instead, Robinhood offers trading of US stocks, options and cryptocurrencies that is free of commissions
Robinhood at a glance
| 🔍 Brokers Name | Robinhood |
| 📍 Headquartered | United States |
| 📅 Year Founded | 2013 |
| 🏛 Regulating Authorities | FINRA (Financial Industry Regulatory Authority), U.S. Securities and Exchange Commission (SEC) |
| 🌐 Countries not accepted for trade | Traders from Unites States only |
| 📒 Demo Account | No |
| ☪️️ Islamic Account (Swap Free) | No |
| 💻 Institutional Accounts | Yes |
| 💻 Managed Accounts | Yes |
| 📊 Maximum Leverage | 1:2 |
| 💰 Minimum Deposit | None |
| 💳 Deposit Options | Domestic and international bank wire |
| 💳 Withdrawal Options | Domestic and international bank wire |
| 📉 Platform Types | Robinhood proprietary platform |
| 📲 OS Compatibility | PC and Mac OS, mobile for Android and IOS |
| 📊 Tradable Assets | Forex, stock index CFDs and commodity CFDs |
| 🌐 Languages supported | English only |
| ☎ Customer Service | 24 hours /5 days a week |
Min Deposit
USD 0
Regulators
FINRA
Trading Platform
Proprietary Platform
Crypto
Yes
Total Pairs
0
Islamic Account
No
Trading Fees
Low
Account Activation
24 Hours
Robinhood Fees and Spreads Revealed – A Key 9 -Point Quick Overview
- ✅Robinhood at a glance
- ✅Robinhood Overview
- ✅Robinhood Fees and Spreads
- Robinhood Additional Trading Fees
- Robinhood Broker Fees
- Robinhood Pros and Cons
- Robinhood Customer Reviews
- Final Thoughts
- Frequently Asked Questions
Robinhood Overview
Robinhood is an online stockbroker headquartered in the United States that was first established in 2013. The broker offers access to stocks, ETFs, options, and cryptos. Robinhood differentiates itself by offering commission-free trading on stocks, ETFs, and options. In turn, the broker makes an income through rebates from market makers and trading venues.
Robinhood Securities, which acts as the clearing broker, developed a routing system to incentivize the market makers Robinhood has relationships with to compete for order flow based on the amount of price improvement obtained. This algorithm, known as the smart order router, prioritizes sending client orders to a market maker that is likely to give you the best execution, based on historical performance. Rebates are not considered when your brokerage orders are routed.
Similarly, Robinhood Crypto has relationships with several cryptocurrency trading venues that allow you to receive competitive prices. Robinhood Crypto receives volume rebates from trading venues. Rebates are not considered when your crypto orders are routed.
Robinhood provides three live account options. These consist of the Standard account, Gold account, and Cash account. Robinhood does not offer an Islamic account for traders of the Muslim faith, nor is a free demo account available to prospective traders. This is rather a drawback, as many prospective traders today rely on the use of a demo account to test broker offerings in a risk-free way before risking real money on a live account.
Client deposits are protected for up to $500,000 for securities and $250,000 for cash claims due to the broker’s regulation with the SIPC. Added to this, Robinhood is a securities brokerage which means that it is regulated by the Securities and Exchange Commission (SEC).
As part of this extensive regulation, margin trading is limited to the gold account only, with an exceptionally low ratio available of 1:2. To access margin trading on the gold account, traders must maintain a minimum account balance of $2000. Overall, Robinhood is a secure online stock broker that offers extremely competitive and transparent pricing, coupled with advanced features and excellent customer support.
Robinhood Fees and Spreads
As a stockbroker, Robinhood does not have a spread list. Instead, Robinhood offers trading of US stocks, options, and cryptocurrencies that is free of commissions. This makes Robinhood one of the most affordable brokers with which to trade in the industry.
Robinhood Additional Trading Fees
Robinhood does not appear to charge swap fees, also referred to as overnight fees, on positions held open overnight. These accrue as interest which can be either debited from or credited to the trader, depending on the nature of the position. As such, Robinhood does not offer a special Islamic Account to traders of the Muslim faith. However, as the broker does not appear to charge swap fees, this is not an issue.
| Overnight Fees | ☑ |
| Inactivity Fees | ❌ |
| Deposit Fees | ❌ |
| Withdrawal Fees | $25 |
As well as providing commission-free trading, Robinhood also has no additional non-trading fees on its accounts, such as inactivity fees or account maintenance fees. Robinhood does not charge deposit fees, although withdrawal fees are charged on wire transfers. Domestic wire transfers are charged at $25, while international wire transfers are charged at $50, both of which are considered high withdrawal fees.
Traders residing outside of the United States will also have to keep in mind that Robinhood only accepts USD as a deposit currency so deposits in other currencies will incur conversion fees.
Robinhood Broker Fees
Traders should also be sure to check with the client support or account manager on any additional broker fees which may be waived by their financial institution. As already noted, traders may be subjected to currency conversion fees should they transfer fees in a currency that is different from their account base currency.
| No spread betting fees |
As Robinhood is not a spread betting broker, so spread betting fees will not apply.
Robinhood Pros and Cons
| ✔️ PROS | ❌ CONS |
| Commission-free trading available | High withdrawal fees |
| No deposit fees | |
| No non-trading fees |
Robinhood Customer Reviews
Good Broker
Robinhood is a good FX broker.. good job ..100% Recommended! – Tony
Robinhood website
Robinhood’s website is easily accessible and user-friendly, also any minor issue I had was eventually resolved…. – Gugu
Robinhood Affiliate Program
I enjoy the opportunities to earn an income through IB programs offered by forex brokers, Check it out! – Chris
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Min Deposit
USD 0
Regulators
FINRA
Trading Platform
Proprietary Platform
Crypto
Yes
Total Pairs
0
Islamic Account
No
Trading Fees
Low
Account Activation
24 Hours
Final Thoughts
Overall, Robinhood offers comprehensive trading conditions in that there are no commissions charged on trades, but there is only leverage of up to 1:2 offered when in possession of a Gold Account. There are some tradable assets, but it is easy to see that Robinhood is more centered around short and long-term investments in its offering, although it does cater to both beginner and more advanced traders and investors.
The pricing is transparent and although only Bank Wire Transfer can be used for deposits and withdrawals, this is one of the most trusted payment methods that present the least issues, although there may be prolonged processing times involved with withdrawals.
Frequently Asked Questions
Does Robinhood charge overnight fees?
No. Robinhood does not charge traders for positions held longer than 24 hours (overnight fees).
What type of spreads apply to Robinhood?
As a stockbroker, Robinhood does not have a spread list. Instead, Robinhood offers trading of US stocks, options and cryptocurrencies that is free of commissions. This makes Robinhood one of the most affordable brokers with which to trade in the industry.
Does spread betting costs apply to Robinhood?
Robinhood does not offer spread betting, therefore fees do not apply
Is Robinhood a good low-commission forex broker?
Robinhood provides commission-free trading.
Does Robinhood charge inactivity fees?
No inactivity fees are charged by this broker.
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