Robinhood offers commission free trading of options contracts, but there is still a regulatory fee charged by FINRA.
In this article, we will take a closer look at the options fees.
This fee charged by Robinhood for options trading is the Trading Activity Fee (TAF).
This fee is charged by the Financial Industry Regulatory Authority (FINRA) to brokerage firms to cover the costs of supervising and regulating these firms. Robinhood passes this fee on to its customers, except for sales of 50 shares or less.
It is important to note that this fee is rounded up to the nearest penny, and will not exceed $7.27 per trade.
However, customers may be charged more than the $7.27 fee if their order is executed in multiple trades.
Robinhood charges a $0 commission for options trades placed.
This makes Robinhood one of the few commission-free options trading platforms available.
This can be a significant advantage for traders who make frequent options trades, as commissions can quickly add up and eat into profits.
It is also worth noting that Robinhood does not charge any fees for exercising options contracts or assignments, which can be an added benefit for traders who hold options contracts until expiration.
In conclusion, Robinhood charges a Trading Activity Fee of $0.00244 per contract for options sells, and this is passed on to FINRA.
It's important to fully understand the risks involved before trading options.
This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.
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