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 more than Robinhood for placing regular stock trades ($4.95 and $0, respectively). For options trading, Charles Schwab has a base fee of $4.95, and Robinhood a base fee of $0. Each option contract then costs $0.65 at Charles Schwab and $0 at Robinhood. 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 and Options Trading while Charles Schwab provides clients access to Stock Trading, Options Trading, Mutual Funds and Futures Trading. Looking at mutual funds, Robinhood trails Charles Schwab by 5,509 total mutual funds, with Charles Schwab offering 5509 and Robinhood offering 0. Commission free ETFs can also be valuable for customers, Charles Schwab offers 244 commission free ETFs versus Robinhood's total of N/A.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Neither Charles Schwab and Robinhood offer virtual trading. Taking a look at mobile trading, Charles Schwab along with Robinhood both support the 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. 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. On the whole, when it comes to tools, research, and mobile trading, both Charles Schwab and Robinhood found themselves without awards for Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.
Overall, Charles Schwab boasts 4.50 stars versus Robinhood's 2.50 stars.