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Hosts will charge you for transferring a domain name. Transferring means that they will tack on another year to the registration and they will manage your domain, or give you control for you to do it. The host then becomes your registrar.
But, if you have a domain registered with, say, godaddy... you do not need to transfer it to a host to use it. All you need to do is get the nameservers of your host and use godaddy's control panel to enter those nameservers. This will point your domain to your site.
Most free hosting companies now allow you to point your domain to your account with them. This should not be confused with transferring your domain to them.
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