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 charges more than Robinhood for placing regular stock trades ($6.95 and $0, respectively). For options trading, E*TRADE has a base fee of $6.95, and Robinhood a base fee of $0. Robinhood's per contract rate of $0 is less than E*TRADE which charges $0.75. 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 and Options 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, with Robinhood having the upper hand thanks to its 499 available commission free ETFs compared to E*TRADE's offering of 270.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Neither E*TRADE and Robinhood offer 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 offered by E*TRADE while Robinhood offers 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 boasts 4.50 stars versus Robinhood's 2.50 stars.