Robinhood Brokerage review: Fees, accounts and features 

Robinhood makes it easy to invest, but whether its brokerage is a good fit depends on what you want to invest in, the value you get from the Gold subscription plan, and your comfort with a mobile-first, self-directed experience. 

This review breaks down Robinhood brokerage costs, account types, trading features, Gold, cash and protection rules, and the main reasons it may or may not work for you as an investor.

Standard brokerage vs. Robinhood Gold at a glance

Robinhood offers a standard brokerage account with an optional Gold membership that adds extra features and requires a monthly or annual fee. Below, you can see how the two compare:

How does a Robinhood brokerage account work?

With a Robinhood brokerage account, you can buy and sell stocks, ETFs, and more through Robinhood’s mobile app.

Here are the different account options available: 

Cash vs. margin accounts

You may choose between a cash account, which requires you to use available funds for trades, and a margin account, which allows you to borrow from Robinhood to invest. If you go the margin route, you’ll need to meet certain eligibility requirements and accept greater risk. 

Other Robinhood account types

Robinhood also offers a variety of other accounts, such as brokerage accounts, IRAs, revocable trust accounts, and custodial accounts. If you’re interested in professional portfolio management instead of choosing investments on your own, you may want to consider managed portfolios through Robinhood Strategies. 

While crypto and futures are also available, they’re separate entities with different terms and disclosures. Therefore, they’re not part of the core Robinhood Financial brokerage account. 

What does Robinhood cost?

Before you move forward with Robinhood, it’s a good idea to familiarize yourself with the potential costs below:

Commission-free trading vs. other fees

Robinhood says trading U.S. stocks, ETFs, and other options through its self-directed brokerage is commission-free. However, that doesn’t mean every transaction is free. Depending on how you use the account, you might owe regulatory, exchange, transfer, wire, paper statement, and other fees.

Robinhood Gold Pricing and value

Robinhood Gold is an optional subscription that costs $5 per month or $50 per year. A subscription unlocks additional features like a higher cash yield, larger instant deposits, investing insights, mortgage offers, and premium rewards, such as luxury goods and crypto gifts. After a 30-day free trial, you’ll be charged once per month.

Robinhood fees and Gold pricing can change, so it’s important to check the website for the most up-to-date information. 

What can you invest in and which trading tools matter?

Robinhood supports a wide range of investments and features that can help you meet your investing goals. These include:

Stocks, ETFs and fractional shares

Once you set up the Robinhood brokerage account, you’ll get access to U.S.-listed stocks, ETFs, closed-end funds (CEFs), American depositary receipts (ADRs), and eligible fractional shares.

Fractional investing allows you to buy stocks and ETFs for as little as $1 if you don’t want to purchase a full share. Just keep in mind that you can’t transfer fractional shares outside the Robinhood platform. 

Recurring investing, options and margin

Recurring investing automates your investments, so you don’t have to make each one manually. Robinhood also offers options trading and margin investing if you meet certain requirements and get approved. However, these involve additional risks you should weigh before taking advantage of them.

How are Robinhood brokerage assets and cash protected?

Robinhood Financial and Robinhood Securities are members of the Securities Investor Protection Corporation (SIPC). In the event either firm fails, SIPC can protect your eligible brokerage assets and cash. However, it won’t cover losses when an investment loses value.

Robinhood itself is not an FDIC-insured bank. However, you may be able to add eligible uninvested brokerage cash into accounts at participating program banks, where it may qualify for pass-through FDIC insurance. Terms and limits vary by bank, so it’s your responsibility to understand them before you commit your money.

Is a Robinhood brokerage account worth it?

If you’re looking for a simple, low-cost approach to investing, a Robinhood brokerage account could be a good option, especially if you’re seeking a mobile experience. You’ll get a clean, easy-to-use app, the ability to invest with minimal funds, and low fees. 

However, if you consider yourself a more advanced investor, or prefer access to mutual funds, or comprehensive research tools or personalized support, you might want to explore alternative options.

Frequently asked questions

Does Robinhood charge fees for a brokerage account?

Robinhood offers commission-free trading for U.S.-listed stocks, ETFs and other options through its self-directed brokerage accounts. However, regulatory, exchange, wire, and paper statement fees may apply.

What is the difference between Robinhood Gold and a standard Robinhood brokerage account?

The standard Robinhood brokerage account is free, while Robinhood Gold is an optional paid membership that costs $5 per month or $50 per year. It adds extra features like a higher cash yield, larger instant deposits, exclusive rewards, and more.

Can you buy fractional shares with Robinhood?

Yes, you can buy eligible stocks and ETFs in dollar amounts starting at $1, so you don’t have to purchase a full share. However, you can’t transfer fractional shares to another brokerage. 

Is money in a Robinhood brokerage account FDIC-insured or SIPC-protected?

Robinhood brokerage assets are protected by the Securities Investor Protection Corporation (SIPC), subject to certain limits. A Robinhood account isn’t FDIC-insured, but eligible uninvested cash swept to participating banks may qualify for pass-through FDIC insurance.