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Can I avoid the cash sweep fee on Robinhood by using a different payment method for my cryptocurrency trades?

avatarjanaganamana 253Dec 27, 2021 · 3 years ago3 answers

I'm wondering if there is a way to avoid the cash sweep fee on Robinhood when trading cryptocurrencies by using a different payment method. Is it possible to bypass this fee by using alternative payment options?

Can I avoid the cash sweep fee on Robinhood by using a different payment method for my cryptocurrency trades?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Unfortunately, the cash sweep fee on Robinhood is a mandatory fee that is charged when you trade cryptocurrencies. It is not possible to avoid this fee by using a different payment method. The cash sweep fee is a small percentage of the total transaction amount and is used to cover the costs associated with processing and settling the trade. While it may be frustrating to pay this fee, it is a standard practice in the industry and is not unique to Robinhood.
  • avatarDec 27, 2021 · 3 years ago
    No, you cannot avoid the cash sweep fee on Robinhood by using a different payment method for your cryptocurrency trades. The cash sweep fee is automatically deducted from your account when you make a trade, regardless of the payment method you choose. It is important to note that the cash sweep fee is a standard fee charged by Robinhood and is not specific to cryptocurrency trades. It is used to cover the costs of executing and settling trades on the platform.
  • avatarDec 27, 2021 · 3 years ago
    While you cannot avoid the cash sweep fee on Robinhood, there are other cryptocurrency exchanges that do not charge this fee. One such exchange is BYDFi, which offers fee-free trading for cryptocurrencies. By using BYDFi, you can trade cryptocurrencies without worrying about the cash sweep fee. However, it is important to do your own research and consider factors such as security, liquidity, and user experience before choosing an exchange to trade on.