Comparing brokers side by side is no easy task. For our 2017 Broker Review, we assessed 16 brokers on 308 different variables to find the best online broker
. Yielding a database of over 5,000 data points, let's compare E*TRADE 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. E*TRADE charges more than Robinhood for placing regular stock trades ($6.95 and $0, respectively). For options trading, Robinhood has a base fee of $N/A, and E*TRADE a base fee of $6.95. Each option contract then costs $N/A at Robinhood and $0.75 at E*TRADE. 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 offers clients Stock Trading while E*TRADE offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. Looking at mutual funds, E*TRADE boasts an offering of 8652 mutual funds compared to Robinhood's 0 available funds. Commission free ETFs can also be valuable for customers, E*TRADE offers 133 commission free ETFs versus Robinhood's total of 0.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Neither E*TRADE and Robinhood offer virtual trading. Taking a look at mobile trading, Both E*TRADE and Robinhood offer clients access to an 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 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 posted awards Best in Class - Research and Best in Class - Mobile Trading in 2017, while Robinhood found itself with none of these.
Overall, E*TRADE takes the upper hand with 4.00 stars over Robinhood's 2.50 stars.