This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Robinhood sparked the commission-free trading revolution and built a mobile-first experience that attracted millions of first-time investors. The app remains one of the simplest ways to buy stocks, ETFs, options, and crypto from a single account.
Fees
| Fee Type | Cost |
|---|---|
| Stock/ETF commission | $0 |
| Options | $0/contract (no per-contract fee) |
| Margin rate (USD) | 5.75% (Gold members) |
| Robinhood Gold | $5/month |
| Inactivity fee | $0 |
| Account minimum | $0 |
Robinhood's headline feature is commission-free options trading with no per-contract fee — the only major broker offering this. Robinhood Gold costs $5 per month and includes lower margin rates, larger instant deposits, and Level 2 market data.
Platform and tools
The Robinhood app is deliberately simple: a search bar, a stock page with a chart and key stats, and a swipe-to-buy flow. The web platform is similarly minimal. Robinhood Legend, a new desktop platform released in 2024, adds advanced charting and multi-leg options strategies.
The simplicity is both a strength and a weakness. New investors find Robinhood easy to use, but experienced traders find the lack of screening tools, backtesting, and research frustrating.
Product range
Robinhood offers stocks, ETFs, options, and crypto (BTC, ETH, and a dozen altcoins). There are no mutual funds, bonds, futures, or forex. Fractional shares are available. Robinhood also offers a cash card and a retirement account with a 1% match.
Regulation and safety
Robinhood is regulated by the SEC and FINRA. SIPC coverage protects up to $500,000. Robinhood does not carry additional excess SIPC insurance. The company has been fined by FINRA multiple times, including a $70 million fine in 2021 for misleading customers and system outages. Read the full safety analysis.
Pros and cons
Pros: Truly commission-free options, simple interface, crypto in the same app, fractional shares, no account minimum, instant deposits.
Cons: Limited tools and research, no mutual funds or bonds, regulatory history, no phone support, PFOF model, gamification concerns.
Is Robinhood right for you?
Robinhood is best for first-time investors who want the simplest possible experience and for occasional options traders who benefit from zero contract fees. Experienced investors will outgrow the platform and should look at Schwab or Fidelity.
Compare Robinhood against Webull in the head-to-head comparison. If you are new to investing, start with the best brokers for beginners.
Common questions
Is Robinhood really commission-free? Yes, for stocks, ETFs, and options. Robinhood earns revenue through PFOF, margin interest, Gold subscriptions, and cash sweep interest.
Is Robinhood safe to use? Robinhood is SIPC-insured and SEC/FINRA regulated. The company has a history of outages and FINRA fines, which you should know about. Read the safety page.
Can I trade crypto on Robinhood? Yes. Robinhood Crypto supports Bitcoin, Ethereum, and a dozen altcoins with no commission. However, you cannot transfer crypto out of Robinhood to your own wallet unless you use Robinhood's wallet feature.