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 charges $4.95 per stock trade which is $4.95 more than Robinhood which charges customers $0 per trade. With options, the base fees charged are $4.95 (Charles Schwab) and $0 (Robinhood). Each option contract then costs $0.65 at Charles Schwab and $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 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. When it comes to mutual funds, Charles Schwab offers its clients access to 5509 different mutual funds while Robinhood has 0 available funds, a difference of 5,509. Commission free ETFs can also be a nice plus, with Robinhood falling behind Charles Schwab, offering N/A commission free ETFs compared to Charles Schwab's 244.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Charles Schwab nor Robinhood offers virtual trading. For mobile trading, Both Charles Schwab and Robinhood offer clients access to an 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 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, Charles Schwab posted awards Best in Class - Platforms & Tools and Best in Class - Research in 2018, while Robinhood found itself with none of these.
Overall, Charles Schwab boasts 4.50 stars versus Robinhood's 2.50 stars.