Trading and ADR fees on Robinhood
Investing with a Robinhood brokerage account is commission free. We don’t charge you fees to open or maintain your account.
However, the following organisations charge Robinhood fees for trading that we do pass on to you:
Note
Under U.K. regulations the market spread costs are considered implicit third-party costs, which is how we refer to these costs for regulatory costs and charges disclosures.
Regulatory transaction fee
Regulatory transaction fee
FINRA is required to pay this fee to the Securities and Exchange Commission (SEC) by law. To generate the funds necessary to do so, FINRA passes the fee on to its members, and many of these members, including Robinhood, pass the fee on to the customers. The fee is ultimately intended to cover the costs incurred by the US government, including the SEC, for supervising and regulating the securities markets and securities professionals. The rate is subject to annual and mid-year adjustments.
As of May 22, 2024, the SEC fee is $27.80 per $1 million of principal (only for sell orders), which is rounded up to the nearest penny. Robinhood doesn’t pass this fee on to you for sales with a notional value of $500 or less.
FINRA charges a trading activity fee (TAF) to brokerage firms like Robinhood to recover the costs of supervising and regulating these firms. We pass this fee to our customers, except for sales of 50 shares or less.
As of January 1, 2024, the TAF is $0.000166 per share (equity sells). This fee is rounded up to the nearest penny, which will be no greater than $8.30 per trade. Keep in mind, you may be charged more than the $8.30 fee because the fee limit is based on the execution of your order, which can occur with multiple partial trades.
Note
The SEC fee and the TAF are set by law and regulation that are subject to change without notice. Review our Fee Schedule before placing trades in your account.
American Depositary Receipt fee
American Depositary Receipt fee
American Depositary Receipts (ADRs) are certificates that represent non-US stocks that you can trade on US stock markets. The banks issuing these certificates may charge custodial fees that typically range from $0.01-$0.03 per share.
Note
Robinhood calculated the combined fee based on an average of what we typically remit to the exchanges. The fee charged by Robinhood may differ from or exceed the actual fee we paid in connection with any transaction. Our Fee Schedule has more details.
Robinhood U.K. Ltd (Robinhood UK) is a company registered in England and Wales (09908051) and is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the US by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.
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FAQs
If you purchase a share from a company that's based outside the US on Robinhood, you can find information about any ADR fees that may apply on the website of the bank issuing the ADR. Standalone ADR fees are passed through to your account based on record date.
Are ADR fees high? ›
Some banks require investors who hold ADRs to pay periodic services fees (sometimes called custody fees), which typically run between $0.01 to $0.03 per share.
What are ADR trading fees? ›
ADRs are created and issued by both domestic and international banks. These custodian banks or 'ADR agents' will typically charge an ADR 'pass-through fee' to cover administrative or other costs associated with the ongoing management of the particular ADR program. The average fee is one to three cents per share.
Does Robinhood charge a fee for trading? ›
Investing with a Robinhood investing account is commission free. We don't charge you fees to open or maintain your account.
Is ADR worth it? ›
What are the benefits of ADRs? ADRs offer benefits both for investors and for the company itself. Through ADRs, foreign companies can enter the largest investment market in the world. This is particularly useful for large companies in foreign countries whose capital markets are smaller or less developed.
Who pays ADR fees? ›
In alternative dispute resolution, the general principle is that each side pays their own costs. You should also be aware that if you unreasonably refuse to consider a form of ADR before or during civil litigation, then you may not get your legal costs back, even if you win.
How often do you pay ADR fees? ›
The institutions that issue ADRs may charge quarterly or annual 'ADR Pass-Through Fees' which consist of custody fees and fees for processing dividends and corporate actions. These fees can add to your investment costs. Liquidity for some ADRs may be low, which may affect bid/ask spreads.
Are ADR stocks risky? ›
ADRs have currency risk because of the way they are structured. The global bank that creates the ADRs establishes a conversion rate, meaning that an ADR share is worth a certain number of local shares. To preserve this conversion rate over time, movements in the exchange rate of the home country vs.
Is ADR cost effective? ›
ADR is more cost-effective and efficient
Moreover, the quicker resolutions, contained legal fees, and streamlined process of ADR significantly reduce the overall costs for both parties, resulting in a more satisfactory outcome that avoids the added expense of starting a case.
What are the hidden fees on Robinhood? ›
TL; DR: Robinhood Hidden Hidden Fees
- Spread Fees: $0.000166 per share (equity sells) and $0.00279 per contract (options sells) ...
- Regulatory Fees: $8 per $1M of principal. ...
- Gold Subscription: $50/ year. ...
- Interest on Margin: 6.75%
In-network ATM fees: As long as you use 1 of the 90,000+ ATMs in the Allpoint or MoneyPass networks, you won't pay any fees. However, if you use an out-of-network ATM, the ATM provider may charge you a fee, and Robinhood may not reimburse you for that fee.
Is Robinhood good for day trading? ›
Absolutely! As long as you abide by the FINRA regulations for pattern day trading, then you can trade to your heart's content with Robinhood's zero-commission trading policy. Robinhood allows users to day trade stocks, ETFs, stock options contracts, and even cryptocurrencies with no trading fees.
How is ADR priced? ›
The price of an ADR corresponds to the price of the foreign stock in its home market, adjusted to the ratio of the ADRs to foreign company shares.
What are the pros and cons of ADR stocks? ›
The pros of ADR include easy tracking and trading, availability through US brokers, denomination in dollars, and may help provide portfolio diversification. The cons of ADR include double taxation, a limited selection of companies and other fees that investors may incur.
Are unsponsored ADR safe? ›
Investing in unsponsored ADRs also exposes investors to currency risk. These ADRs are typically denominated in U.S. Dollars but represent shares of foreign companies. Therefore, any fluctuations in the exchange rate between the U.S. Dollar and the foreign currency can significantly impact the value of the investment.
