Investing in the stock market has never been more accessible, thanks to platforms like Robinhood and a growing number of low-fee brokerage firms. Whether you're a beginner looking for free Robinhood stocks or an experienced investor searching for the brokerage with lowest fees, understanding trading fees on Robinhood, day trading rules, and regulatory affiliations like the list of FINRA member firms is essential.
This comprehensive guide breaks down all you need to know about Robinhood, alternative brokerages, and how to trade with minimal fees.
Understanding Trading Fees on Robinhood
Robinhood revolutionized the investment landscape by introducing commission-free trading, a model that was quickly adopted by other brokerages. But while Robinhood promotes zero commissions, it’s important to recognize where trading fees still exist.
1. Commission-Free Doesn’t Mean Fee-Free
Robinhood does not charge a fee for buying or selling U.S. stocks, ETFs, or options. However, certain regulatory and third-party fees may apply:
- Regulatory Transaction Fee (SEC): $0.000145 per share (sells only)
- Trading Activity Fee (TAF): $0.000166 per share (sells only, rounded to the nearest penny)
- Options Regulatory Fee (ORF): Varies, approximately $0.02–$0.05 per contract
These fees go to the government and regulatory agencies—not Robinhood.
2. Robinhood Gold Fees
Robinhood Gold is their premium subscription service for advanced tools and margin investing.
- Cost: $5/month
- Margin investing: Interest is charged for amounts borrowed over $1,000 (current rate is ~12% annually)
If you’re an active trader using margin, you may end up paying more in interest than on a free account.
Robinhood Day Trading: What You Need to Know
Robinhood day trading is popular due to its user-friendly interface, but there are important rules and limitations.
1. What Is Day Trading?
Day trading involves buying and selling the same stock within a single trading day. The SEC flags any user who performs 4 or more day trades within 5 business days in a margin account as a pattern day trader (PDT).
2. Robinhood's Pattern Day Trader Rule
Robinhood follows the FINRA PDT rule. If your account is flagged as a pattern day trader:
- You must maintain a minimum balance of $25,000 in your account.
- Falling below this threshold restricts your ability to day trade.
3. Avoiding PDT Restrictions
- Use a cash account instead of a margin account.
- Limit day trades to three per five business days.
- Consider swing trading (holding positions for days/weeks) to avoid day trade flags.
Brokerage Firms with the Lowest Fees
While Robinhood is famous for zero commissions, it's not the only player. Many brokerage firms with lowest fees offer competitive pricing, additional tools, and more robust features.
1. Fidelity Investments
- Stock & ETF trades: $0
- Options trades: $0 + $0.65/contract
- Account minimum: $0
- Best for: Beginners, retirement investors, and long-term investing
2. Charles Schwab
- Stock & ETF trades: $0
- Options: $0 + $0.65/contract
- Account minimum: $0
- Best for: Research tools, customer support
3. Webull
- Stock & ETF trades: $0
- Options: $0 + $0.55/contract
- Crypto trading: Available
- Best for: Mobile-first traders and beginners
4. M1 Finance
- Stock & ETF trades: $0 (automated investing only)
- No real-time trading
- Best for: Passive and long-term investors
5. SoFi Invest
- Stock & ETF trades: $0
- Fractional shares: Available
- Crypto: Available
- Best for: New investors looking for simple and guided investing
These platforms offer various features—some cater to active traders, while others support passive strategies.
How to Get Free Robinhood Stocks
Many investors are drawn to the platform by the allure of free Robinhood stocks. This referral program helps you earn bonus shares by inviting friends.
1. How the Free Stock Program Works
- When you sign up using a referral link, you receive a random free stock.
- Value can range from $5 to $200, with most users getting between $3–$10.
- Once the stock settles (after 3 trading days), you can sell it and reinvest or withdraw.
2. Tips for Maximizing Free Stocks
- Refer multiple friends (up to a yearly limit).
- Use the proceeds to diversify your portfolio.
- Keep track of tax implications when selling.
Robinhood vs Other Low-Fee Brokerages
Robinhood is ideal for quick access and simplicity, but how does it compare with other discount brokerages?
| Feature | Robinhood | Webull | Fidelity | Schwab | SoFi Invest |
|---|---|---|---|---|---|
| Commission Fees | $0 | $0 | $0 | $0 | $0 |
| Options Trading | $0 + fees | $0 + $0.55 | $0 + $0.65 | $0 + $0.65 | No |
| Crypto | Yes | Yes | No | No | Yes |
| Fractional Shares | Yes | Yes | Yes | Yes | Yes |
| Research Tools | Limited | Good | Excellent | Excellent | Basic |
Brokerage with Lowest Fees for Options and Margin
If you are trading options or using margin, fees can add up quickly—even if the platform advertises $0 commissions.
1. Best Low-Fee Broker for Options Trading
- Tastytrade: $1 per opening contract, $0 to close
- Webull: $0 + $0.55 per contract
- Robinhood: $0 per contract (great for beginners)
2. Best Broker for Low Margin Rates
- Interactive Brokers: Margin rate as low as 5.83%
- Fidelity: Starts around 12%
- Robinhood: ~12% unless subscribed to Gold
For large margin usage, Interactive Brokers typically has the lowest overall cost.
Who Regulates Brokerages? List of FINRA Member Firms
When choosing a brokerage, always ensure it is registered and regulated by the Financial Industry Regulatory Authority (FINRA). This adds transparency, security, and consumer protections.
1. What Is FINRA?
FINRA is a non-governmental organization that oversees U.S. brokerage firms and exchange markets. It enforces ethical trading practices and compliance.
2. Where to Find the List of FINRA Member Firms
You can find the official list of FINRA member firms on brokercheck.finra.org.
This tool lets you:
- Verify firm credentials
- Check for regulatory actions
- Research investment advisors and brokers
3. Common FINRA-Member Firms
- Robinhood Financial LLC
- Charles Schwab & Co., Inc.
- Fidelity Brokerage Services LLC
- TD Ameritrade, Inc.
- E*TRADE Securities LLC
- Webull Financial LLC
Always cross-check any platform's registration before depositing funds.
Final Thoughts: Choosing the Right Brokerage for You
With so many low-cost and commission-free brokerages, it’s easier than ever to start investing. But the right platform depends on your goals.
If you’re a beginner:
Start with Robinhood, SoFi, or M1 Finance for their simplicity and low-cost structure.
If you’re an active trader:
Consider Webull or Interactive Brokers for better analytics, real-time data, and lower options/margin fees.
If you’re long-term focused:
Use Fidelity or Charles Schwab for retirement planning tools and robust research features.
FAQs
Does Robinhood really offer free stocks?
Yes. Robinhood gives new users free stocks (randomized) through a referral system.
Can I day trade on Robinhood without $25,000?
Yes, but only up to 3 times in a 5-day period unless you maintain a $25,000 margin balance.
What is the lowest-fee brokerage in 2025?
Robinhood, Webull, and Fidelity continue to be top contenders for lowest trading fees. For options and margin, Interactive Brokers leads.
Is Robinhood a FINRA member?
Yes. Robinhood Financial LLC is a registered member of FINRA.
Conclusion
In today’s digital trading era, investors have unprecedented access to low-cost brokerages free Robinhood stocks, and efficient tools to manage investments. Whether you're looking to start day trading on Robinhood, find a brokerage with lowest fees, or confirm if your broker is in the list of FINRA member firms, this guide equips you with the insights needed to make informed decisions.
Smart investing starts with understanding the fees—and now you're one step ahead.