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 E*TRADE vs Robinhood. Is E*TRADE or Robinhood a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. E*TRADE, with its regular stock trades costing $6.95, is more expensive than Robinhood's rate of $0 per trade. For options trading, Robinhood has a base fee of $N/A, and E*TRADE a base fee of $6.95. Option contracts are pricier at Robinhood, costing $N/A versus $0.75 at E*TRADE. 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 while E*TRADE offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, E*TRADE offers its clients access to 8998 different mutual funds while Robinhood has 0 available funds, a difference of 8,998. Commission free ETFs can also be a nice plus, E*TRADE offers 156 commission free ETFs versus Robinhood's total of 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, Both E*TRADE 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 and Debit Cards are available to clients of E*TRADE while Robinhood offers customers none of these. On the whole, when it comes to tools, research, and mobile trading, E*TRADE finished with awards Best in Class - Research and Best in Class - Mobile Trading, while Robinhood came up with none of these.
Overall, E*TRADE comes out on top with 4.00 stars over Robinhood's 2.50 stars.