Robinhood Commission Fee: The Complete Guide to What You Pay and Why

Opening
– This guide is for self-directed investors who use Robinhood.
– Check exact costs before you trade. You will get clear numbers and step-by-step math.
– Learn which trades are truly commission-free and which regulatory or clearing fees still apply.
– Understand rounding rules, per-execution caps, and how multiple fills can raise tiny fees.
– Read concrete examples you can copy: equity trades, options trades, multi-fill scenarios.
– Plan to reduce microscopic regulatory charges using a few simple rules.

Quick Answer / TL;DR
– Commission on U.S. stocks and ETFs: $0 per trade for the broker’s commission.
– SEC regulatory fee (sells): $20.60 per $1,000,000 of principal (principal = trade value) → rounded up to the nearest cent; exempt for equity sales of $500 or less.
– Trading Activity Fee (TAF) on sells: equity = $0.000195 per share; options = $0.00329 per contract → rounded to nearest cent; capped at $9.79 per execution.
– Options add-on: Robinhood collects $0.04 per options contract to cover clearing and exchange costs.
– Plan for rounding, per-execution caps, and multi-execution orders. Multiple fills can multiply rounding effects.

What Robinhood Commission Fee Means

Understand the phrase “commission-free.” You pay $0 broker commission on many U.S. stock, ETF, and crypto trades.
Expect non-broker fees. Regulators and clearinghouses impose fees. Robinhood may pass some through on sell executions.
Key numbers to memorize: $0 broker commission; $20.60 SEC fee per $1,000,000 principal on sells; $0.000195 TAF per share for equity sells; $0.00329 TAF per contract for options sells; $0.04 per options contract pass-through.
Understand principal (the total trade value = price × shares). Use principal to compute the SEC fee. Example: 1,000 shares at $2.00 = $2,000 principal.
Rounding and caps matter. The SEC fee is rounded up to the nearest cent. The TAF is rounded to the nearest cent and capped at $9.79 per execution.
Watch multiple fills. One order that fills in 4 pieces can incur rounding and cap calculations 4 times. That raises the effective fee.
Use these rules to plan: keep small equity sells at or below $500 to avoid the SEC pass-through. Consolidate fills to avoid repeated rounding.

Comparison table — quick view
| Trade type | Broker commission | SEC fee on sell | TAF (regulatory) | Broker pass-through |
|—|—:|—:|—:|—:|
| Equity buy | $0 | $0 | $0 | $0 |
| Equity sell | $0 | $20.60 per $1,000,000 principal (rounded up) | $0.000195 per share (rounded, capped $9.79/execution) | $0 |
| Options buy | $0 | $0 | $0 | $0 |
| Options sell | $0 | $20.60 per $1,000,000 principal (if applicable on options sell) | $0.00329 per contract (rounded, capped $9.79/execution) | $0.04 per contract collected by broker |
| Crypto trade | $0 | $0 | $0 | Exchange or spread may apply |

Regulatory and Exchange Fees (SEC, TAF, OCC)

SEC fee (sell-side only): compute as $20.60 per $1,000,000 of principal.
Example: $10,000 sale → fee = ($10,000 / $1,000,000) × $20.60 = $0.206 → rounds up to $0.21.
Robinhood does not pass this fee on for equity sales of $500 or less. Use that $500 threshold to time micro-sells.
Trading Activity Fee (TAF): applies on executed sells.
Equity rate = $0.000195 per share. Compute shares × $0.000195. Round to the nearest cent. Do not exceed $9.79 per execution.
Options rate = $0.00329 per contract. Compute contracts × $0.00329. Round to the nearest cent. Cap at $9.79 per execution.
OCC and clearing costs: clearinghouses (for example, the OCC for options) charge clearing and settlement fees. Brokers recover these costs.
Robinhood recovers a combined $0.04 per options contract to cover such exchange and clearing fees.
The $0.04 is charged per contract and stacks with the TAF regulatory portion.
Rounding and multi-fill effect: regulators require rounding to the nearest penny or rounding up. One order filled in 3 executions can incur three rounding events.
Example: sell 500 shares at $2.00 = $1,000 principal → SEC fee = $0.0206 rounds up to $0.03. TAF = 500 × $0.000195 = $0.0975 rounds to $0.10. Total ≈ $0.13.
If that 500-share order executes as 5 fills of 100 shares each, each 100-share TAF is 100 × $0.000195 = $0.0195 → rounds to $0.02 per fill → $0.02 × 5 = $0.10 (same as single fill rounding in this case). But the SEC rounding could change per fill if principal splits across fills.
Cap implications: the TAF cap of $9.79 per execution means a single large execution with many shares is limited to $9.79. But multiple executions each hitting the cap can yield much larger total fees.

Options and Contract Fees Breakdown

Options regulatory baseline: when you sell options, apply the TAF at $0.00329 per contract on sells. Round to the nearest cent per execution. Cap applies.
Broker-collected per-contract fee: Robinhood collects $0.04 per options contract to cover clearing and exchange costs. This amount is charged on trades and on each contract.
Compute total incremental per-contract cost: add $0.04 to the per-contract regulatory portion. Example: 1 contract sold → regulatory = $0.00329 → rounds to $0.00 or $0.01 depending on execution rounding rules; broker recovery = $0.04 → expect roughly $0.04–$0.05 total per contract.
Practical example A: sell 10 option contracts.
Broker recovery = 10 × $0.04 = $0.40.
TAF = 10 × $0.00329 = $0.0329 → rounds to $0.03 or $0.04 depending on rounding.
Total ≈ $0.43–$0.44.
Practical example B: sell 100 contracts.
Broker recovery = 100 × $0.04 = $4.00.
TAF = 100 × $0.00329 = $0.329 → rounds to $0.33.
Total ≈ $4.33.
Exercise and assignment: clearing/settlement charges for exercise and assignment are industry-standard. These small charges get recovered through per-contract fees or separate pass-throughs. Expect a few cents to a few dollars for large or complex events.
Watch high-volume stacking: 1 contract = $0.04; 10 contracts = $0.40; 50 contracts = $2.00; 100 contracts = $4.00. Multiply before you trade.

When You Pay Fees and When You Don’t

Sell-only regulatory fees: the SEC fee and TAF typically apply on sells, not on buys. Plan sells accordingly.
Small-sale SEC exemption: avoid the SEC sell pass-through by keeping equity sale notional at $500 or below. For a $5.00 stock, sell up to 100 shares and stay within $500. For a $1.00 stock, sell up to 500 shares to stay under $500.
Execution-level caps and rounding: the TAF per-execution cap is $9.79. One execution of 100,000 shares: compute TAF = 100,000 × $0.000195 = $19.50 → capped to $9.79.
Multiple fills risk: if that 100,000-share order fills as ten executions of 10,000 shares, each execution TAF = 10,000 × $0.000195 = $1.95 → no cap per fill. Total = $1.95 × 10 = $19.50, which is more than single execution capped $9.79.
Options-specific pass-through: each sold options contract triggers both the per-contract broker recovery ($0.04) and the regulatory TAF ($0.00329). For 25 contracts, expect $1.00 in broker recovery and roughly $0.08 in regulatory TAF before rounding.
Non-trading exceptions: deposits and withdrawals do not trigger trading regulatory fees. However, check for wire fees or outbound transfer fees. Confirm any ACAT or wire fee on your account statement before initiating a transfer.
Timing and settlement: settlement cycles (often 2 business days for equities) do not change regulatory fee math. But exercise or assignment events can generate additional clearing fees. Track settlements to avoid unexpected cash shortfalls.

How to Calculate Fees on a Trade — Step-by-Step with Examples

Step 1: Determine principal for the sell. Multiply price × shares. Example: sell 150 shares at $8.00 → principal = 150 × $8.00 = $1,200.
Step 2: Compute SEC fee. Use formula: (principal / $1,000,000) × $20.60. Round up to the nearest cent. Skip if equity sell and principal ≤ $500.
Example: $1,200 → SEC fee = ($1,200 / $1,000,000) × $20.60 = $0.02472 → rounds up to $0.03.
Step 3: Compute TAF. Equity TAF = shares × $0.000195. Options TAF = contracts × $0.00329. Round to the nearest cent per execution. Apply cap $9.79 per execution.
Example equity: 150 shares × $0.000195 = $0.02925 → rounds to $0.03.
Example options: 5 contracts × $0.00329 = $0.01645 → rounds to $0.02.
Step 4: Add broker-collected per-contract fees. For options, add $0.04 per contract. For equities, no broker per-share recovery is added by Robinhood.
Example options: 5 contracts → broker recovery = 5 × $0.04 = $0.20. Add TAF $0.02 → total incremental cost ≈ $0.22.
Step 5: Sum components. Example equity sell of 150 shares at $8.00: SEC $0.03 + TAF $0.03 = $0.06 total regulatory fees for that execution.
Example A (equity small sale): Sell 100 shares at $10.00 → principal = $1,000.
SEC = ($1,000 / $1,000,000) × $20.60 = $0.0206 → rounds up to $0.03.
TAF = 100 × $0.000195 = $0.0195 → rounds to $0.02.
Total = $0.05.
Example B (equity micro sale exempt): Sell 50 shares at $8.00 → principal = $400.
SEC exempt (since ≤ $500) → SEC fee $0.00.
TAF = 50 × $0.000195 = $0.00975 → rounds to $0.01.
Total = $0.01.
Example C (options sale): Sell 10 contracts at $1.20 premium.
Broker recovery = 10 × $0.04 = $0.40.
TAF = 10 × $0.00329 = $0.0329 → rounds to $0.03.
Total incremental fees ≈ $0.43.
Rounding note: always round each component per execution. If your order splits into multiple fills, compute fees for each execution and then sum them.

Hidden Costs and Other Fees to Watch

Margin interest (if you borrow): check your margin rate. Example margin-rate range you might see is 3.95%–5.00% APR. Interest accrues daily. Borrow $10,000 at 4.50% APR → annual interest ≈ $450; daily ≈ $1.23.
Account transfer and wire fees: brokers commonly charge outbound ACAT or wire fees. Check your account terms for exact amounts before requesting transfers. Typical ranges at some brokers are $25–$100, but confirm the exact fee on your statement.
Premium features and subscriptions: some broker features cost a fixed monthly or annual fee. Compare costs: $0 versus $5, $10, or $30 per month can change effective trading economics for active traders.
Currency conversion and FX spreads: if you trade ADRs or foreign shares, expect FX conversion costs or spreads. A 0.10%–1.00% FX spread can add up on large trades.
Order routing and execution quality: some brokers generate revenue from order routing. That does not show as a line fee, but it can affect executed price by a few cents to a few dollars depending on trade size. Track execution price versus mid-market price to measure hidden cost.
Exercise and assignment fees: exercises and assignments can trigger clearing fees. For heavy options activity, these can add several dollars per event. Monitor notices of assignment and exercise for any pass-through.
Tax and wash-sale effects: trading frequency can generate short-term capital gains taxed at ordinary rates. Wash-sale rules can defer loss recognition. These are indirect costs and can exceed regulator fees on active accounts.
Watch out for: frequent micro-sells. Selling small lots often multiplies rounding and per-execution fees. Consolidate sells where possible to reduce per-execution rounding.

Comparison checklist — concrete numbers to remember
– $0 — broker commission for many U.S. stock and ETF trades.
– $20.60 — SEC fee per $1,000,000 principal (sell-side calculation base amount).
– $1,000,000 — divisor for the SEC fee formula.
– $500 — equity sale notional threshold for SEC fee exemption.
– $0.000195 — TAF per share for equity sells.
– $0.00329 — TAF per contract for options sells.
– $0.04 — per-options-contract broker recovery collected by Robinhood.
– $9.79 — TAF cap per execution.
– 100 shares, 150 shares, 500 shares, 10 contracts, 100 contracts — common example sizes to use in calculations.
– 3.95%–5.00% — example margin-rate range for borrowed balances.
– $0.03, $0.05, $0.10, $0.43, $4.33 — sample totals from earlier examples to sanity-check calculations.

Closing
– Use the numbers above when you plan trades. Compute SEC and TAF before you sell.
– Consolidate fills to reduce multiple rounding events. Limit micro-sells under $500 for equity to avoid the SEC pass-through.
– For options, multiply $0.04 per contract by contract count. Add the $0.00329 regulatory portion. Round per execution and watch the $9.79 cap.
– Check your account statements after trades. Match SEC and TAF lines to your manual calculations. Dispute any mismatch promptly.
– Test with small trades. Verify how multiple fills appear on your statement. Adjust strategy if micro-fees erode returns on high-frequency activity.

End of guide.