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Comparing Robinhood vs. E*TRADE involves contrasting one of the oldest brokers and one of the newest. Robinhood boasts four times as many customer accounts as E*TRADE, yet over 5 million investors trust E*TRADE as their online broker. Why are Robinhood and E*TRADE relied on by so many traders, and which is the best online broker for you? Read on for a head-to-head comparison of Robinhood vs. E*TRADE.
Both Robinhood and E*TRADE are low-fee brokers for investors who trade exclusively stocks and ETFs. Derivatives and crypto traders will find Robinhood's commission-free trading of special interest. Mutual fund investors will find E*TRADE's suite of more than 6,000 no-load, no-commission mutual funds appealing. In this round of Robinhood vs. E*TRADE, the victor depends on you as an investor.
Robinhood pioneered zero-commission trading, and has stuck to that model. Investors using Robinhood enjoy $0 commissions on all trades of stocks and ETFs. For that reason, Robinhood is consistently ranked as one of the best ETF brokers. Robinhood continues to push the envelope with $0 commissions on cryptocurrency and options trades. Combine that with no account maintenance fee, and you've got a very low cost broker.
Like many brokers, E*TRADE now offers zero-commission stock, mutual fund, and ETF trading. However, investors are charged up to $0.65 per option contract, about the industry average. (Investors who make 30 or more stock, ETF, or options trades per quarter are charged $0.50 per contract.) E*TRADE offers over 6,400 no-load, no-commission mutual funds.
Robinhood | E*TRADE | |
---|---|---|
Stock & ETF commissions | $0 | $0 |
Options commissions | $0 | $0 + up to $0.65 per contract |
Crypto commissions | $0 | N/A |
Mutual fund commissions | N/A | $0 (over 6,000 no-load, no-commission) |
Account transfer fee | $100 | $75 |
Account maintenance fee | $0, or $5 per month for Robinhood Gold | $0 |
Like most brokers, both Robinhood and E*TRADE help customers trade stocks and ETFs. However, if you seek alternative investment options, there is a distinct divide in the Robinhood vs. E*TRADE comparison. Robinhood's innovative DNA means that it has few, but often groundbreaking investment options. Robinhood offers fractional shares. With fractional shares, those with less to invest can own some of the biggest names in the market. Additionally, Robinhood offers cryptocurrencies, making it one of the few brokers to do so.
E*TRADE offers a broader range of investments to its clients. Beyond stocks and ETFs, investors can purchase over 6,500 mutual funds, including over 6,400 no-load funds. That is part of why E*TRADE is consistently among the best brokers for mutual funds. Additionally, E*TRADE customers can buy CDs and bonds, which may be an important part of a well-diversified portfolio. For traders with suitable risk tolerance, E*TRADE offers options and futures.
The suitability of Robinhood vs. E*TRADE depends in large part on the investments you want to hold. For crypto, options, and fractional share traders, Robinhood may be a good bet. For investors seeking mutual funds, CDs, bonds, and futures, E*TRADE may be the clear choice. Investors buying mostly stocks and ETFs may find both Robinhood and E*TRADE attractive.
Robinhood | E*TRADE | |
---|---|---|
Stocks and ETFs | Yes | Yes |
Fractional shares | Yes | No |
Options | Yes | Yes |
Mutual funds | No | Over 6,500 Total (over 6,400 no-load) |
CDs | No | Yes |
Bonds | No | Yes |
Futures | No | Yes |
Crypto | Yes | No |
Currencies | No | No |
For many investors, a taxable brokerage account may not be the most efficient place to invest in and store assets. These brokers differ a lot here. E*TRADE offers a very wide range of account types beyond the traditional taxable individual account. They include traditional and Roth IRAs, SEP and SIMPLE IRAs, beneficiary IRAs, and IRAs for minors. Additionally, customers can rollover a 401(k) onto the E*TRADE platform. E*TRADE is also considered one of the best robo-advisors, with a suite of managed portfolios. Customers seeking to keep all of their assets under one roof may find E*TRADE's checking, savings, and credit card accounts of special interest.
Robinhood offers users a taxable brokerage account, a traditional IRA, and a Roth IRA. Users can open a margin account, but only Robinhood Gold subscribers get the best rate.
Robinhood's streamlined approach has launched it into the spotlight. But E*TRADE has much more to offer investors seeking retirement, robo-advisor services, banking, or other accounts.
Robinhood | E*TRADE | |
---|---|---|
Taxable brokerage | Yes | Yes |
Joint tenant | No | Yes |
Margin | Yes | Yes |
Robo-advisor | No | Yes |
Traditional IRA | Yes | Yes |
Roth IRA | Yes | Yes |
Other IRA | No | Yes, SEP IRA, IRA for Minors, Beneficiary IRA, SIMPLE IRA, Rollover IRA |
Custodial | No | Yes |
Checking | No, but offers a spending account | Yes |
Savings | No, but offers brokerage cash sweeps | Yes |
Credit card | No | Yes |
Investors evaluating Robinhood vs. E*TRADE will find key differences in mobile apps and trading platforms. For traders who value a sleek mobile app without bells and whistles, Robinhood may be a strong choice. E*TRADE offers a complex desktop suite best for active traders and options traders.
Robinhood was one of the pioneers of mobile trading, and still ranks as one of the best stock trading apps. A no-frills platform, Robinhood has made trading controversially easy. With little more than portfolio information and transaction tabs, the app is simple and visually appealing. Robinhood's desktop version is very similar to the mobile app.
E*TRADE offers a simple, easy-to-navigate mobile and desktop platform. With market data, commentary, research, and screeners, the basic platform is well suited to active traders. The Power E*TRADE platform sports a sleek dashboard and impressive tools for derivatives traders.
Comparing Robinhood vs. E*TRADE depends on the investing style and priorities of individual investors. Both brokers offer low fees and a user-friendly trading platform. However, each broker better suits a different style of customer.
Robinhood is an industry pioneer, offering a highly accessible mobile application and zero-commission trading. It has continued to push the boundaries of what a broker is and does by offering cryptocurrency as an investment option. Derivatives traders should note its uncommon $0 options contract fee. Investors who seek alternative investments and don't need the bells and whistles offered by many brokers should consider Robinhood.
E*TRADE is an established broker, as is evident in its wide range of investment and account offerings. Investors seeking more than a taxable brokerage account and basic IRAs may find value in E*TRADE's many retirement, robo-advisor, and banking accounts. Readers who invest in mutual funds, CDs, bonds, and futures will want to consider that these investments are available to E*TRADE customers. Add extensive market research and a powerful options dashboard, and E*TRADE may be the best broker for you.
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 2024.
It depends on what you're looking for. Robinhood offers cheaper options trading and a beautiful user experience. But it's not as fully featured. For example, only E*TRADE offers a robo-advisor.
Yes. It offers a wide variety of zero-commission ETFs and mutual funds. Its stock trading platform is very beginner friendly.
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Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
E*TRADE services are available just to U.S. residents.