Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare Interactive Brokers 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. Interactive Brokers and Robinhood charge the same amount for regular stock trades, $0. Looking at options, the base fees charged are the same for both brokers, $0. Robinhood's per contract rate of $0 is less than Interactive Brokers which charges $0.70. 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 Interactive Brokers offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Interactive Brokers boasts an offering of 10051 mutual funds compared to Robinhood's 0 available funds. And, commission free ETFs deserve a comparison, with Robinhood falling behind Interactive Brokers, offering N/A commission free ETFs compared to Interactive Brokers's 45.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers makes virtual trading available to clients, while Robinhood does not. For mobile trading, Both Interactive Brokers and Robinhood offer clients access to an iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Debit Cards are offered by Interactive Brokers while Robinhood offers none of these. All factors considered, when it comes to platform tools, research, and mobile trading, unfortunately, neither Interactive Brokers nor Robinhood received awards Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.
Overall, Interactive Brokers comes out on top with 4.50 stars over Robinhood's 2.50 stars.