Comparing brokers side by side is no easy task. For our annual broker review, we assess over a dozen brokers on hundreds of different variables to find the best online broker
. Yielding a database of over 5,000 data points, let's compare Charles Schwab vs Robinhood.
To start this comparison, first, we will take a look at the online broker commission rates for placing regular stock and options trades. Charles Schwab charges $4.95 per stock trade which is $4.95 more than Robinhood which charges customers $0 per trade. Looking at trading options, Charles Schwab's base fee is $4.95 while Robinhood's is $N/A. Each option contract then costs $N/A at Robinhood and $0.65 at Charles Schwab. It's important to note that not all brokers charge a flat fee per trade. Thus, it is important to read the full commission notes for each broker, which we include with each online broker review
Next to commission rates, being able to trade what you want is important. Robinhood provides its clients with Stock Trading while Charles Schwab provides clients access to Stock Trading, Options Trading, Mutual Funds and Futures Trading. Looking at mutual funds, Charles Schwab boasts an offering of 5509 mutual funds compared to Robinhood's 0 available funds. Commission free ETFs can also be valuable for customers, with Robinhood falling behind Charles Schwab, offering 0 commission free ETFs compared to Charles Schwab's 244.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Neither broker offers virtual trading. Taking a look at mobile trading, Both Charles Schwab and Robinhood offer clients access to an iPhone App, iPad App and Android App. Not to be left out, online banking is also a nice benefit for many investors, and some brokerages provide these services to clients. Clients can have Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans at Charles Schwab while customers at Robinhood can have none of these. On the whole, when it comes to tools, research, and mobile trading, Charles Schwab finished with awards Best in Class - Platforms & Tools and Best in Class - Research, while Robinhood came up with none of these.
Overall, Charles Schwab boasts 4.50 stars versus Robinhood's 2.50 stars.