Charles Schwab vs. Robinhood: Which App Wins for New Investors?

I've used Charles Schwab for years and seen firsthand how reliable and flexible it can be. Meanwhile, Robinhood has lowered the barrier to entry with its sleek app and simple design.

Both are strong choices -- in fact, each earned a spot on our list of the best stock brokers this year. The question is which one fits your goals. Let's look at them together.

Charles Schwab vs. Robinhood: At a glance

Charles Schwab

Charles Schwab is a full-service brokerage with a wide range of account types. I like that it's built for every stage of an investor's life. You can start small with fractional shares or grow into more advanced tools. For me, it's been a reliable home base as my goals have gotten more complex.

Robinhood

Robinhood is best known for making stock and options trading simple and accessible. Its sleek app offers commission-free trades on stocks, ETFs, and more, plus fractional shares for as little as $1. Robinhood has expanded into IRAs with a standout 1% match (3% with Robinhood Gold), but it's still primarily focused on active trading and beginner-friendly features.

Offer	Charles Schwab	Robinhood
Rating	Rating 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Rating 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Commissions	Commissions $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.	Commissions $0 for stocks, ETFs, and options
Account Minimum	Account Minimum $0	Account Minimum $0
Learn More	Learn More for Charles Schwab On Charles Schwab's Secure Website. Read Full Review	Learn More for Robinhood On Robinhood's Secure Website. Read Full Review

How we rate stock brokers

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

How we rate stock brokers

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

Fees and costs

When it comes to trading stocks and ETFs, both Schwab and Robinhood keep things cheap. Neither platform charges commissions, which means you can buy and sell without seeing a slice of your return disappear right away. The differences show up once you move beyond the basics.

Schwab: Stock and ETF trades are free, but options contracts cost $0.65 each. Advisory services range from robo-advice (Schwab Intelligent Portfolios) at no additional cost -- though you'll need at least $5,000 to start -- to full-service advice with Schwab Wealth Advisory™, which can charge 0.80%+ a year.

Robinhood: All stock, ETF, and options trades are free. With Robinhood Gold ($5/month), you get lower margin rates starting at 5.75% on balances up to $50,000, plus some extra research tools. Small regulatory fees apply, and outgoing transfers -- like instant bank moves or wires -- tend to cost more here than at Schwab.

Bottom line: Both platforms are cheap for stock trading. Robinhood pulls ahead on options since it doesn't charge per-contract fees, while Schwab offers a wider mix of account and advisory choices if you want more than the basics.

Account types

Schwab shines when it comes to account variety. Beyond the standard brokerage and IRA, you can open 529s, custodial accounts, and joint accounts. It's a full-service platform. Robinhood keeps things simpler, offering just brokerage accounts and IRAs.

If you want one place to house a mix of retirement, college, and taxable accounts, Schwab wins. If you're just dipping a toe in with your first brokerage or IRA, Robinhood covers the basics.

Standout features

What sets Schwab apart is the depth of its platform. The thinkorswim suite gives you advanced charting, research, and trading tools if you want to go beyond the basics. And its customer service has been consistently strong in my experience -- I've called in many times over the years with everything from rollover questions to Roth strategy, and the reps have always been helpful and patient. That reliability makes a big difference when your money's on the line.

Robinhood's headline feature is its IRA match promotion -- 1% for everyone, or 3% if you upgrade to Robinhood Gold. That kind of perk is almost unheard of among brokerages and gives retirement savers a meaningful edge. Combined with its clean, beginner-friendly app, Robinhood makes it easy to get started and feel comfortable investing even with a small balance.

Downsides

Neither platform is perfect. Schwab's interface isn't flashy and the cash you leave uninvested earns very little, so I usually keep extra money in a separate high-yield savings account until I'm ready to invest. It also doesn't let you buy crypto directly, only through ETFs and funds.

Robinhood, meanwhile, is missing some key tools for long-term investors, like mutual funds and index funds. Customer support and research aren't as robust as Schwab's, either.

My take

If you're brand new and want the easiest way to start, Robinhood has clear appeal -- especially with its IRA match and simple app. But if you're thinking long-term, or want one platform that can grow with you, Schwab is built for exactly that.

I see Robinhood as a great place to begin and Schwab as a great place to stay. The right choice depends on whether you're experimenting with your first few trades or building a foundation for the future.

Ready to get started?

You don't have to lock yourself into one choice forever. Many investors (myself included) test more than one platform before settling on the best fit. What matters is getting started so your money isn't sitting idle.

Build a long-term home for your investing with a platform that grows alongside your goals. Open a Charles Schwab account today.
Start investing in minutes with a simple, beginner-friendly app -- and grab an IRA match while you're at it. Open a Robinhood account today.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.

Broker	Best For	Commissions	Learn More
4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Managing your finances under one roof	$0 for stocks, $0 for options contracts	Learn More for SoFi Active Investing On SoFi Active Investing's Secure Website.
4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Low-cost investing with a full-featured platform	$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.	Learn More for Charles Schwab On Charles Schwab's Secure Website.
5.0/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Full-service investing at every experience level	$0 commission for online U.S. stock and ETFs. No account fees***.	Learn More for Fidelity On Fidelity's Secure Website.

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