From https://support.robinhood.com/hc/en-us/articles/208650286-Eligible-Securities ...
Settlement Fees for Non-DTC Eligible Securities
For various reasons, certain low-priced securities are not DTC eligible or have had their eligibility revoked. As a result, the settlement of these physical positions can carry significant pass-through charges for our clearing firm, Apex Clearing Corporation (“APEX”), including execution fees, DTC fees, deposit fees, New York window fees, and transfer agent fees. These fees, which can vary and may be substantial, increase the cost that APEX passes through for clearing and execution.
Customers who trade non-DTC eligible securities are responsible for these charges, which may exceed 10 times the value of the trade. Orders that require executions with multiple contra-parties will result in settlement fees for each separate transaction. Neither Robinhood Financial nor APEX mark up any of these fees before they are passed through to customers. These pass-through charges may not be immediately charged to a customer account following a trade in non-DTC eligible securities, as APEX may not receive notice of such fees until several weeks following the trade. Robinhood Financial reserves the right to withhold funds in a customer account pending potential assessment of fees associated with trading in low-priced securities. It is your responsibility to investigate the eligibility status of a low-priced security before trading it. It is strongly recommended that you contact the specific company whose equity you intend to trade to confirm eligibility. Customers who trade non-DTC eligible securities are responsible for these charges, which may exceed 10 times the value of the trade.
Can anyone shed some light on this?
