Is Robinhood a regulated broker?
Yes, Robinhood is regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is also a member of the Securities Investor Protection Corporation (SIPC), which protects customer funds up to $500,000 (including $250,000 for cash).
Does Robinhood charge trading commissions?
Robinhood offers commission-free trading on stocks, ETFs, and options. However, options contracts have no per-contract fees, and there are regulatory and clearing fees that may apply. Cryptocurrency trading is also commission-free.
Does Robinhood offer margin trading?
Yes, Robinhood provides margin trading through Robinhood Gold, a premium subscription service that allows users to borrow money for trading. The current margin rate is 8% for standard users and 5% for Gold members.