The StockBrokers.com annual broker review assesses more than a dozen different brokers over six months, surfacing the best online stock brokers. This review compares Charles Schwab vs Robinhood. Is Charles Schwab or Robinhood a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. Charles Schwab and Robinhood both cost $0 per trade. Looking at options, the base fees charged are the same for both brokers, $0. Option contracts are pricier at Charles Schwab, costing $0.65 versus $0 at Robinhood. Note that some brokers charge a per-share fee instead of a flat-fee commission. For a full breakdown of commissions, read our online broker reviews.
For our next comparison of these two brokers, being able to trade the way you want is a must. Robinhood offers clients Stock Trading and Options Trading while Charles Schwab offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, Robinhood trails Charles Schwab by 5,846 total mutual funds, with Charles Schwab offering 5846 and Robinhood offering 0.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Neither broker offers virtual trading. For mobile trading, Charles Schwab and Robinhood both have a iPhone App, iPad App and Android App. Furthermore, some investors like to bank online, and multiple brokerages provide these services to clients. Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans are offered by Charles Schwab while Robinhood offers none of these.
Overall, between Charles Schwab and Robinhood, Charles Schwab is the winner.
Charles Schwab Review