Researchers found that Robinhood’s options transactions cost nearly 7% of the dollar value|@AskRobinhood|X
A new study found that Robinhood Markets, known for low fees on options trading, may cost customers more due to hidden fees.
The study, conducted by finance professors from the University of California, Irvine, and Washington University, involved nearly 7,000 options trades across six platforms.
Researchers found that Robinhood’s options transactions cost nearly 7% of the dollar value, significantly higher than other brokers like Vanguard and Fidelity.
Robinhood has disputed these findings. The trading app reported $336 million in options revenue this year. Several traders are reportedly considering switching to brokers with more transparent pricing.