Using data from the StockBrokers.com 2017 Broker Review which tested 16 different online brokers
over six months, we can compare Charles Schwab vs Robinhood to determine which broker is best. Let's dive in.
First, we will break down the commission charges of both brokers for placing stock and options trades. Charles Schwab, with its regular stock trades costing $4.95, is more expensive than Robinhood's rate of $0 per trade. With options, the base fees charged are $N/A (Robinhood) and $4.95 (Charles Schwab). Option contracts are pricier at Robinhood, costing $N/A versus $0.65 at Charles Schwab. Instead of flat rate fees, several brokers charge a per-share fee instead. For a complete review of trading charges, read our full online broker reviews
Next, investors want to make sure they can trade the investment vehicle they want. Robinhood supports Stock Trading while Charles Schwab supports Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Robinhood trails Charles Schwab by 5,165 total mutual funds, with Charles Schwab offering 5165 and Robinhood offering 0. And, commission free ETFs deserve a comparison, with Charles Schwab having the upper hand thanks to its 229 available commission free ETFs compared to Robinhood's offering of 0.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Neither broker offers virtual trading. For mobile trading, Charles Schwab and Robinhood both have a iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans are available to clients of Charles Schwab while Robinhood offers customers none of these. All factors considered, when it comes to platform tools, research, and mobile trading, Charles Schwab finished with awards Best in Class - Platforms & Tools and Best in Class - Research in 2017, while Robinhood came up with none of these.
Overall, Charles Schwab boasts 4.50 stars versus Robinhood's 2.50 stars.