SPDR S&P 500 ETF (SPY) — Buy and sell commission-free on Robinhood (2024)

FAQs

Do you pay ETF fees on Robinhood? ›

Robinhood is one of the top trading apps for investors. Launched in 2014, it charges no commission fees on ETF and stock trades. 4 As an investor, you'll pay the usual expense ratio to the ETF issuer.

Why Robinhood? Robinhood gives you the tools you need to put your money in motion. You can buy or sell SPYI and other ETFs, options, and stocks.

Sign up for Robinhood or refer a friend to choose your free fractional share in companies you love. Certain limitations apply. Invest in stocks, options, and ETFs at your pace and commission-free.

The S&P 500 is a stock index, not a stock. Just like the Dow Jones Industrial Average or the Nasdaq Composite Index, there are no shares of S&P 500 for traders to buy directly. Traders would need to purchase shares of the underlying 500 companies represented in the index.

You don't want to invest in mutual funds or bonds: Robinhood may be a good option for those interested in stocks, ETFs, options, and even cryptocurrencies, but if you want to hold mutual funds or individual bonds in your brokerage account, you're out of luck.

$0.000166 per share (equity sells) and $0.00279 per contract (options sells). This fee is rounded up to the nearest penny and no greater than $8.30. statement or confirm is generated. Out-of-network ATM Providers may charge a fee, which Robinhood Financial will not reimburse.

The Vanguard 500 Index Fund ETF (NYSEMKT: VOO) is No. 1 on Robinhood. It also is the third-biggest ETF in the world based on assets under management. As its name indicates, VOO is operated by mutual fund pioneer Vanguard.

Bottom line. The SPY ETF is a cost-effective investment option for investors looking to gain exposure to about 500 large US companies. However, it is also subject to the same risks as any other investment in the stock market, including market volatility, and economic and geopolitical risks.

What is a 30-day yield? The 30-day yield is based on a formula mandated by the Securities and Exchange Commission (SEC) that calculates a fund's hypothetical annualized income, as a percentage of its assets. It does not take into account the effect of changing share prices on the total return.

Despite offering zero-commission trades, Robinhood DOES pass on specific regulatory fees to its users. These include the Trading Activity Fee (TAF) and the Regulatory Transaction Fee, which are mandatory fees charged by regulatory bodies like FINRA and the SEC and are not marked up by Robinhood​​.

How do I avoid Robinhood fees? ›

Maintenance fees: We don't charge fees to open, close, or maintain an individual investing account. In-network ATM fees: As long as you use 1 of the 90,000+ ATMs in the Allpoint or MoneyPass networks, you won't pay any fees.

Investing with a Robinhood investing account is commission free. We don't charge you fees to open or maintain your account.

That's because your investment gives you access to the broad stock market. Meanwhile, if you only invest in S&P 500 ETFs, you won't beat the broad market. Rather, you can expect your portfolio's performance to be in line with that of the broad market.

A simple way to do that is to purchase shares of a mutual fund or ETF. Many mutual funds are built with underlying stocks that mimic the makeup of the S&P 500. This way, with one single purchase, an investor can own a piece of the S&P 500, and benefit or fall as the S&P 500 does.

Over the long run, they do compound—those fee differences—and investors have been putting a lot more money into VOO versus SPY. That is the reason why we view VOO slightly better than SPY. And that is just the basic approach, which is the lower the investor can pay, the better the investment is.

ETFs don't often have large fees that are associated with some mutual funds. But because ETFs are traded like stocks, you may pay a commission to buy and sell them, although there are commission-free ETFs in the market. To be fair, mutual funds do offer a low cost alternative: the no-load fund.

Since ETFs are bought traded on stock exchange through a stock broker, every time an investor makes a purchase or sale, he/she pays a brokerage for the transaction . In addition, an investor may also incur STT and the usual costs of trading in stocks, including differences in the ask-bid spread etc.

Maintenance fees: We don't charge fees to open, close, or maintain an individual investing account. In-network ATM fees: As long as you use 1 of the 90,000+ ATMs in the Allpoint or MoneyPass networks, you won't pay any fees.

Also known as ETF transaction fees or ETF transaction costs, these may range from $8 to $30 at brokerage firms. Trading commissions are charged per trade, so they can add up if investors buy and sell a lot—and they're usually more expensive when an order is placed in person or over the phone.