Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare E*TRADE 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. E*TRADE, with its regular stock trades costing $6.95, is more expensive than Robinhood's rate of $0 per trade. Looking at trading options, Robinhood's base fee is $0 while E*TRADE's is $6.95. Each option contract then costs $0.75 at E*TRADE and $0 at Robinhood. 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 offers clients Stock Trading and Options Trading while E*TRADE offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, E*TRADE offers its clients access to 8998 different mutual funds while Robinhood has 0 available funds, a difference of 8,998. And, commission free ETFs deserve a comparison, with E*TRADE having the upper hand thanks to its 225 available commission free ETFs compared to Robinhood's offering of N/A.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Neither broker offers virtual trading. For mobile trading, E*TRADE 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 and Debit Cards are offered by E*TRADE while Robinhood offers none of these. All factors considered, when it comes to platform tools, research, and mobile trading, unfortunately, neither E*TRADE nor Robinhood received awards Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.
Overall, E*TRADE comes out on top with 4.50 stars over Robinhood's 2.50 stars.