Stockpile vs. Robinhood: Which Broker Is Right for You?

Both Robinhood and Stockpile cater to beginner investors, but the brokerages aren't the same. While Stockpile is heavily focused on fractional share investing and helping people acquire assets over time, Robinhood offers a wider range of investment options. Stockpile, however, offers some unique features Robinhood doesn't, including the ability to gift stock using stock gift cards as well as supervised custodial accounts designed for teaching children to invest.

This Robinhood vs. Stockpile review will help you understand the key differences between the two trading platforms so you can decide which one is the right choice based on your investor profile and financial goals.

If you're looking for the best options trading platforms, Stockpile won't work for you but Robinhood might. Stockpile doesn't allow you to trade options at all while Robinhood provides options trading with no contract fees. That sets Robinhood apart from many competitors, as it's common for brokerage firms to charge around $0.65 per contract fee for options trading.

Robinhood also offers cryptocurrency trading, while Stockpile doesn't. When it comes to buying stocks and ETFs, however, both Robinhood and Stockpile will work for most investors. Neither charges commission fees for either type of transaction.

Robinhood undoubtedly has a wider choice of investment options as you can trade stocks and ETFs as well as options and cryptocurrencies. Stockpile only allows you to purchase stocks and ETFS. Both brokerage firms allow fractional share trading with as little as a $1 investment, though. This low minimum investment makes both trading platforms worthy of consideration for those looking for the best online brokers for beginners.

Stockpile offers a few unique features Robinhood doesn't, though. You can gift stocks using eGift cards, and you can create a custodial account to teach kids about investing. Kids can submit a request to buy or sell stocks or ETFs in supervised custodial accounts and the trades will be executed after adult approval.

If you're looking for the best brokers for IRAs or the best robo-advisors, Stockpile and Robinhood will both disappoint. Neither brokerage account offers a robo-advisory service and you can't open tax-advantaged retirement accounts such as IRAs with either investment app.

Stockpile does offer custodial accounts, though, which Robinhood doesn't. But those interested in a cash management account will find them available at Robinhood while Stockpile has no comparable alternative.

Stockpile and Robinhood are both focused on mobile investing and have full-featured apps that make trading stocks and ETFs simple on the go. The Robinhood app received a 4.2 out of 5-star rating, while Stockpile received a 4.7-star rating from the iOS store.

Neither Stockpile nor Robinhood offer full-featured desktop apps such as those offered by TD Ameritrade or Charles Schwab. But their platforms don't have much of a learning curve and they make it simple to find assets to buy, manage your portfolio, and track your investing progress.

When deciding between Stockpile vs. Robinhood, a lot depends on the kind of investor you are and the account type you are looking for.

Stockpile is an ideal choice for parents who hope to teach kids about investing, while Robinhood is a better fit for anyone who wants to trade options or cryptocurrencies. If you're simply interested in stock trading -- or in buying fractional shares -- you can't go wrong with either brokerage firm and may want to try out the apps each offers to see which user interface you prefer.