Options trading is one of the biggest reasons new traders download Robinhood. The app made options commission-free and wrapped a genuinely complex product in a tap-friendly interface, which is why so many first-time options traders start here.
Before you can buy a single contract, though, you need to clear an approval level, understand the per-contract fees, and respect the real risk. This guide covers exactly how Robinhood handles options in 2026: the approval levels, what each one unlocks, what you actually pay, and how to get approved. If you want a beginner-friendly broker that makes options accessible without a commission, Robinhood is the most popular on-ramp, so we start there.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
Robinhood options at a glance
Here are the core facts, current as of July 2026. Terms and fees can change, so confirm the latest numbers in the app before trading.
| Feature | Detail |
|---|---|
| Commission | $0 per trade |
| Contract fee (Gold members) | $0.35 per contract |
| Contract fee (non-Gold) | $0.50 per contract |
| Approval levels | Level 1, Level 2, Level 3 |
| Account types | Cash or margin (Level 3 needs margin) |
| Regulatory fees | Small per-contract exchange and regulatory pass-through fees on sells |
Robinhood does not charge a base commission on options. What you pay instead is a small per-contract fee plus a few regulatory pass-through fees on sell orders. On a 5-contract trade, a Gold member pays about $1.75 in contract fees, versus $2.50 for a non-Gold account.
Robinhood options approval levels, explained
Robinhood assigns you an options level based on your stated experience, risk tolerance, income, and account balance. You do not choose your level directly. You apply, and Robinhood grants the level it thinks fits your profile.
Level 1 covers the lower-risk strategies: covered calls, where you sell calls against stock you already own, and cash-secured puts, where you set aside cash to buy a stock if the put is exercised. These are the strategies many income-focused investors use.
Level 2 adds the ability to buy calls and puts outright. This is what most people picture when they think of options trading, betting on a stock rising or falling with a defined maximum loss (the premium you paid). Level 2 also keeps everything Level 1 allows.
Level 3 unlocks advanced multi-leg strategies like credit spreads, debit spreads, iron condors, calendar spreads, and iron butterflies. Level 3 generally requires a margin account, and Robinhood typically wants to see that you have already traded Level 2 strategies. Cash accounts do not support Level 3.
What options contracts actually cost
The headline is that trades are commission-free, but options are not entirely free. As of July 2026, the per-contract fee is $0.35 for Robinhood Gold members and $0.50 for standard accounts. On top of that, sell orders carry small regulatory pass-throughs, including a Trading Activity Fee of about $0.00329 per contract and an options regulatory fee of a few cents per contract.
These fees are tiny per contract, but they add up if you trade often. A high-volume trader placing dozens of contracts a week will feel the difference between the Gold and non-Gold rate. If you plan to trade options seriously, the Gold contract discount is one reason people weigh the membership.
The bigger cost is almost never the fee. It is the risk. Buying options can lose 100% of the premium if the contract expires worthless, and selling uncovered or spread positions can lose far more than you collect. Robinhood's clean interface can make these trades feel casual, so treat position sizing and stop-losses as non-negotiable.
A second brokerage worth comparing
If Robinhood's approval level feels limiting, or you simply want a second platform with a different fee structure, Public is a commission-free alternative that also supports options. Public runs an options model that rebates part of the contract fee back to you, and it pays a competitive yield on uninvested cash, which appeals to traders who keep money on the sidelines between setups. Opening an account with Public is a low-friction way to compare interfaces before you commit.
Having two brokerages open is common among active traders. You can watch how each one prices contracts, and route trades to whichever fits a given strategy. Our Public review breaks down its full fee schedule and cash yield if you want the deeper look.
Public
Public
Investing for those who take it seriously. Invest in stocks, bonds, options, crypto & more.
Standout feature
A 5%+ yield Bond Account paired with 3.3% APY on cash — Public is one of the only consumer apps where idle and conservative money is treated as seriously as the equity portfolio.
Fees
Free
Pros
• Invest in stocks, bonds, crypto & more• Earn 3.3% APY* on your cash with no fees• 1% match when you transfer your portfolio• Lock in a 5%+ yield with a Bond Account
Cons
Customer support is in-app and email only, no phone
How to get approved for options on Robinhood
Getting approved is fast, usually just a few minutes, but you have to answer the application honestly. Robinhood asks about your investing experience, income, net worth, and objectives, then maps your answers to a level.
A few practical tips:
- Start with a cash or margin account already funded. An account with some history and balance signals you are a real investor, not brand new.
- Be accurate about experience. Overstating experience can approve you for strategies you are not ready to manage. Understating it can lock you out of what you need.
- Set an objective that matches the level. Level 3 aligns with speculative or advanced goals, so a purely conservative objective may cap you at Level 1 or 2.
- Upgrade later. If you are approved for Level 1 and want Level 2 or 3, you can reapply once you have more experience on the platform.
If you get denied or capped below what you expected, our guide on why you can't trade options on Robinhood walks through the most common reasons and fixes. For the full Level 3 path, see our breakdown of Robinhood Level 3 options.
Is Robinhood the right place to trade options?
For most beginner and intermediate traders, Robinhood is a reasonable place to trade options because of the commission-free structure, the low $0.35 to $0.50 contract fee, and the simple interface. Once you are approved, placing your first trade takes seconds, and features like stop-losses help you manage downside. Our step-by-step guide on how to buy options on Robinhood shows the exact flow.
The trade-off is depth. Robinhood is lighter on advanced charting and historical data than pro platforms, and the ease of trading can encourage overtrading. If you value a frictionless mobile experience and mostly trade Level 1 and 2 strategies, Robinhood fits well. If you want a margin account to reach Level 3, review our guide on Robinhood margin versus cash accounts first.
Robinhood
Robinhood
Robinhood is a trading platform that brings stocks, ETFs, options, futures, prediction markets, crypto, and retirement accounts together in one app.
Standout feature
One platform for stocks, ETFs, options, futures, prediction markets, and crypto
Fees
$0 commission on stocks, ETFs, and options.
Pros
Zero-commission trading on stocks, ETFs, and options
Cons
Best perks (high APY, lower margin rates) require Gold subscription ($5/month)
What users commonly report
Across public reviews, a few themes come up repeatedly. Many users praise how easy Robinhood makes placing an options trade, especially for people intimidated by traditional broker platforms. Reviewers often mention that approval was fast and the fee structure is easy to understand.
A common complaint is that advanced traders outgrow the app, wanting deeper analytics and better historical data. Some users also caution that the simplicity can make risky trades feel too casual, and that assignment and expiration mechanics tripped them up early on. The balanced takeaway: great for accessible options trading, less ideal if you need professional-grade tools.
Frequently Asked Questions
Do I need Robinhood Gold to trade options?
No. You can trade options on a standard Robinhood account. Gold members pay a lower contract fee of $0.35 versus $0.50, plus other perks, but Gold is not required to get approved or place trades.
What options level do beginners usually get?
Most new options traders are approved for Level 1 or Level 2, depending on the experience and objectives they report. Level 3, which unlocks multi-leg spreads, generally requires a margin account and some demonstrated options experience.
How much does one options contract cost on Robinhood?
There is no base commission. You pay a per-contract fee of $0.35 as a Gold member or $0.50 otherwise, plus small regulatory pass-through fees on sell orders. One contract typically controls 100 shares of the underlying stock.
Can I lose more than I invest trading options on Robinhood?
Yes, with certain strategies. Buying calls or puts caps your loss at the premium you paid, but selling uncovered options or certain spreads can lose more than you collected. Options carry real risk, so size positions carefully. Terms and conditions apply.
