This provision establishes a daily Stock Borrow Fee applicable to all open short positions, calculated using the largest short position held open each day multiplied by the end-of-day market price and the quoted borrow rate divided by 360, with the borrow rate variable and set at Robinhood's discretion based on its assessment of competitive necessities. Fees are aggregated monthly and appear on account statements.
This analysis describes what Robinhood's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes that the borrow rate is variable, changes daily, and is set at Robinhood's discretion based on competitive necessities, without specifying a cap or advance notice requirement for rate changes. The fee continues to accrue until the closing trade settles, not merely until it is placed, which extends the accrual period beyond the trade execution date.
The agreement establishes a daily Stock Borrow Fee on all open short positions, with the rate determined by Robinhood based on market supply and demand and its own assessment of competitive necessities, subject to daily change without advance notice. The fee accrues until the closing trade settles and is billed monthly.
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Compare across platforms →"If the Customer has an open short position in his/her Account, whether it is established through short selling, option exercise or assignment, account transfer, or otherwise, Robinhood can charge a Stock Borrow Fee. The fee for each position is calculated as the largest short position held open each day, multiplied by the end of day market price multiplied by the quoted borrow rate divided by 360. This Stock Borrow Fee is subject to change daily and can be charged until a trade closing the short position settles. The daily fees will be aggregated monthly and will appear on the Customer's account statement. The borrow rate charged will vary depending on the supply and demand for the particular security in the securities lending market. The Customer understands that Robinhood can seek to charge you any rate consistent with Robinhood's view of competitive necessities.Excerpt from Robinhood's Margin Account Rules
(1) REGULATORY LANDSCAPE: This provision engages SEC and FINRA disclosure obligations regarding fees charged to customers in securities lending and short sale contexts.
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This provision establishes that the borrow rate is variable, changes daily, and is set at Robinhood's discretion based on competitive necessities, without specifying a cap or advance notice requirement for rate changes. The fee continues to accrue until the closing trade settles, not merely until it is placed, which extends the accrual period beyond the trade execution date.
The agreement establishes a daily Stock Borrow Fee on all open short positions, with the rate determined by Robinhood based on market supply and demand and its own assessment of competitive necessities, subject to daily change without advance notice. The fee accrues until the closing trade settles and is billed monthly.
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