How To Avoid Robinhood Transfer Fee?

Avoid Robinhood transfer fee

You might have been a long-time user of the Robinhood app but are not happy with your experience or just not in agreement with their policies.

When doing a transfer away from Robinhood, you see a massive transfer fee being placed that you find unfair. In this article, you will learn about how one can avoid the Robinhood transfer fee to ensure a smooth transfer.  

Is It Free To Transfer Money From Robinhood To A Bank?

Robinhood doesn’t charge any money when you are transferring or withdrawing money from your account to the bank. Here are just some of the services that have zero fees included in them-

  • You can essentially open up an account, then maintain it and close it in the future. 
  • There are no ATM fees; however, out-of-network ATMs may charge you fees that will not be covered by the Robinhood app.
  • Robinhood places no foreign transaction fees, and they do not charge any foreign transaction fees. However, the payment merchants might charge you some fees based on the nature of your activity.
  • No card replacement fees are placed on losing or having it damaged, and they will mail a new one immediately.
  • No dollar minimum will be required to have an account in a Robinhood brokerage firm.

How To Avoid Robinhood Transfer Fee?

There is no legal way to avoid the transfer fee as it is a government-mandated transfer that every user must pay. One way you can avoid these fees is to essentially find a brokerage firm that is willing to reimburse you.

There are many companies that give out promotional offers to cover any legal cost that you may incur to build a long-term relationship.

What Robinhood Charges For?

They’re specific fees put on the user for using the Robinhood Gold service fees, or some other party may place them on you. You will have a margin-enabled account which might incur interest on the debit card transactions.

Also Read: Robinhood Day Trading Rules

How Much Does Robinhood Charge Per Transfer?

Suppose you are thinking of transferring your stock and cash to any other brokerage firm with the “ACATS (Automated Customer Account Transfer Service)” method of transfer.

You will be placed with a Robinhood transfer fee which amounts to a 75 dollar fee regardless of whether it is a partial or complete transfer.

Final Thoughts

You have now learned about how one can avoid the transfer fee to divest from the Robinhood application. Transferring from one brokerage to another is purposefully complicated, but it is a one-time hurdle at best.

If you are not able to find a brokerage firm willing to reimburse the $75 fee is relatively benign when considering the long-term gains.

Also Read: Fix: Robinhood Account Restricted

Frequently Asked Questions 

Can You Cancel The Stock Transfer At Any Given Moment?

Yes, absolutely; you can stop the transfer at any moment by contacting the brokerage you initiated your process with.

Why Is The Transfer Fee From One Brokerage To Another So High?

These transfer charge fees are placed to avoid people constantly shifting brokerage firms. In other firms, you can be charged from $50 to $125 to transfer to the other firms.