Robinhood, a popular stock trading app, has been accused of having hidden fees. The app is known for its low fees, but some users have found that there are additional charges, such as $6 to sell stocks. The allegations come from a Reddit user who claims to have lost money after transferring funds from another account to their Robinhood account. The user says that they were charged $6 for the transfer, even though the app advertises that it has no fees for transfers between accounts. Robinhood has denied any hidden fees and says that all transactions are transparent. The company says that it only charges a fee for trades that take longer than three minutes to complete. This accusation of hidden fees is not the first time that Robinhood has been in the news. In February, the company was sued by the SEC over allegations of securities fraud. At the time, Robinhood said that it would fight the lawsuit and continue to operate as a free stock trading app. ..
Robinhood invests commission-free now and forever. We don’t charge you fees to open your account, maintain your account, or send money into your account. FINRA, however, charges a modest fee for selling orders as a self-regulatory organization (SRO).
It’s a low-cost way to get your feet wet with the stock market because there are no trading or commission costs, no account minimums or account maintenance expenses. According to a November 2020 study by behavioral finance experts, Robinhood users trade nine times more frequently than users of other low-cost brokerages such as E*Trade.
Robinhood is an online brokerage that allows customers to trade stocks, exchange-traded funds (ETFs), and even cryptocurrency without paying any commissions. Although Robinhood does not charge its users for trades directly, it makes money from market makers and frequency trading firms who pay for the order flow of its amateur traders.
