Comparing brokers side by side is no easy task. For our annual broker review, we assess over a dozen brokers on hundreds of different variables to find the best online broker
. Yielding a database of over 5,000 data points, let's compare Interactive Brokers 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. Interactive Brokers and Robinhood have equal fees for trading stocks (equities), $0 per trade. For options trading, both Interactive Brokers and Robinhood charge the same base fee of $0. Each option contract then costs $0.70 at Interactive Brokers and $0 at Robinhood. 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 and Options Trading while Interactive Brokers offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. Looking at mutual funds, Robinhood trails Interactive Brokers by 10,051 total mutual funds, with Interactive Brokers offering 10051 and Robinhood offering 0. Commission free ETFs can also be valuable for customers, with Robinhood having the upper hand thanks to its 499 available commission free ETFs compared to Interactive Brokers's offering of 45.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Interactive Brokers offers virtual trading while Robinhood does not. Taking a look at mobile trading, Interactive Brokers and Robinhood both have a 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. Debit Cards are offered by Interactive Brokers while Robinhood offers none of these. On the whole, when it comes to tools, research, and mobile trading, Interactive Brokers was rated Best in Class - Mobile Trading, while Robinhood was rated none of these.
Overall, Interactive Brokers comes out on top with 4.50 stars over Robinhood's 2.50 stars.