Robinhood Fees Explained: Trading Costs and Pricing Structure

You may have heard about some of this brand’s advertising online and elsewhere, where they specifically tout no commission fees on certain activities. But what sort of Robinhood fees can you expect when you start trading event contracts?

That’s exactly what you’re about to find out inside this mini guide. You’ll learn what type of fee you’ll need to pay when you purchase a contract, as well as when you exit a contract early. You’ll also find out what sort of transaction fees are involved, such as when you’re depositing and withdrawing funds. Read on for the details…

How does Robinhood’s event contracts trading work?

Before we get into the exact fees, let’s quickly take a moment to describe the activities that generate these fees. While this platform allows for a lot of different types of trading, we’re going to focus on event contracts, such as Robinhood sports predictions, election predictions, climate events, and so on. These event contracts present a binary option, where you purchase the contract based on what you think is the likely outcome.

For example, “Who will win the nomination as the 2028 Republican presidential candidate?” You’d be given two (or perhaps more) options, and you purchase the contract with your predicted outcome. This is the same way other platforms work, such as if you purchase Kalshi election event contracts.

How much are Robinhood trading fees for event contracts?

Robinhood charges a flat rate of 2¢ per contract, which breaks down to 1¢ for Robinhood’s commission, and 1¢ for the exchange fee. If you exit this contract early, you’ll pay another trading fee of 2¢ per contract. If you hold your contract to expiration, there are no further commissions or exchange fees.

Let’s take an example…

Let’s suppose you’re purchasing 100 event contracts at 30¢ per contract. The contracts themselves will cost $30, which is based on the calculation of 100 X 30¢. Then you’ll also have a $2 trading fee, based on the calculation of 100 contracts X 2¢ per contract. As such, your total outlay for this particular purchase of 100 contracts is $32.

Now let’s imagine that you decide to exit this contract early, which triggers another fee of 2¢ per contract for a total of $2. At this point, you’ve spent $30 to purchase the contracts, plus $4 in fees for trading the contracts, for a total of $34.

Join Robinhood for fee-free predictions

Open the Robinhood app to make your trade

How much are Robinhood deposit and withdrawal fees?

You have the option of using your credit card, debit card, or a bank transfer to deposit into your Robinhood account. Robinhood doesn’t charge any type of fees for these deposits.

When it comes time to withdraw your funds, bank transfers are free. If you prefer an instant withdrawal, you’ll pay a fee equal to 1.75% of the amount you’re withdrawing.

Here’s a recap of the fees and costs:

How do Robinhood fees compare to Polymarket?

Robinhood charges a flat rate of 2¢ per contract, whereas Polymarket fees are dynamic. Polymarket charges “Takers” (those who place market orders) a fee that’s based on the event category, as well as the probability of the event. The more certain an outcome is, the lower fee you pay. Categories such as crypto, economics and politics have fees ranging from 1% to 1.8%, whereas the geopolitical category is free. Meanwhile, “Makers” (those who provide liquidity through limit orders) aren’t charged fees, and they get a small rebate based on the Taker’s fees.

So, which is the better deal? It depends on what you’re doing, but in general you’ll find that Robinhood is best for small, frequent trades, whereas Polymarket is best for those providing liquidity through limit orders, or engaging in large trades.

Pros and cons of Robinhood fees and costs

Robinhood keeps its fee structure fairly simple for event contracts, but there are still a few things worth knowing before you trade. Here’s a quick breakdown:

Pros and Cons

• The flat-rate trading fees are predictable and easy to calculate
• Traders enjoy zero settlement fees
• No additional fees for transferring funds between your Robinhood balances

• You pay fees both when you buy and sell event contracts

Final thoughts on Robinhood’s fee structure

Robinhood offers predictable fees, versus the “dynamic fees” that similar platforms such as Polymarket charges. Deciding which platform’s fee structure is better depends largely on what you want to do. Other sites charge dynamic Taker’s fees, but no Maker’s fees, whereas Robinhood charges a flat but fair fee for each trade. This makes Robinhood a better option if you’re primarily doing small, frequent trades.

To get started trading, just tap the Robinhood banner on this page. If there is a bonus welcome offer currently available to you, you’ll find information about it on the banner.

Robinhood fees and costs FAQs