Why choose Robinhood
Robinhood is a great broker if you’re looking for cheap, no-nonsense US stock and ETF trading on the go. Forget your laptop; the user experience on the Robinhood mobile app is one of the best I’ve ever seen. It has low fees all around: not only free withdrawals and free stock trading but also free options trading, a competitive edge over most US brokers. Just mind the small print: its trade execution prices aren’t the best in the market, translating to an implicit trading cost for you.
- Free US stock and ETF trading
- Great mobile and web trading platforms
- Fast and fully digital account opening
- Interest paid on uninvested cash
See how the best brokers in the United States compare to Robinhood
Fees
- Commission-free US stock and ETF trading
- Transparent fee structure
- Interest paid on uninvested cash
We compared Robinhood's fees with two similar brokers we selected, SoFi Invest and Webull. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of Robinhood alternatives.
Commission-free stock and ETFs
It’s extremely great as Robinhood has commission-free US stock trading.
Broker | US stock |
---|---|
Robinhood | $0.0 |
SoFi Invest | $0.0 |
Webull | $0.0 |
High margin rates
Robinhood USD margin rate fees are slightly higher than the industry average. USD margin rate fees are calculated as follows: The standard margin rate is 12%, while Robinhood Gold, there is $5 per month fixed fee and 0% annual charge below $1,000, while 8% annual charge above $1,000
Broker | USD margin rate |
---|---|
Robinhood | 12.0% |
SoFi Invest | 10.0% |
Webull | 9.7% |
The standard margin rate is 12%, which is high. On the other hand, the margin trading costs for Robinhood Gold clients is a $5 per month fixed fee and 0% annual charge below $1,000, while a 7.5% annual charge above $1,000.
Low options commission
It’s extremely great as Robinhood has commission-free US stock index options trading.
Broker | US stock index options |
---|---|
Robinhood | $0.0 |
SoFi Invest | - |
Webull | $5.5 |
Similarly to stocks, options trading is also commission-free.
No inactivity fee, no withdrawal fee
There are no withdrawal or inactivity fees.
Broker | Inactivity fee | Withdrawal fee |
---|---|---|
Robinhood | $0 | |
SoFi Invest | $0 | |
Webull | $0 |
If you would like to transfer assets out from Robinhood, a transfer fee of $75 will be charged.
Other commissions and fees
Low spot crypto fees: at Robinhood, crypto trading costs 0% of trade value.
Broker | Mutual fund | US micro e-mini stock index futures |
---|---|---|
Robinhood | - | - |
SoFi Invest | - | - |
Webull | - | - |
Safety
- Majority of clients belong to a top-tier financial authority
- High level of investor protection
- Listed on stock exchange
Deposit and withdrawal
- Free withdrawal
- No deposit fee
- Cash management service
Account opening
- Fast
- Fully digital
- Tax-advantaged accounts (traditional and Roth IRA)
Mobile app
- User-friendly
- Two-step (safer) login
- Good search function
Web trading platform
- User-friendly
- Clear fee report
- Two-step (safer) login