Using data from the StockBrokers.com 2017 Broker Review which tested 16 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 both cost $0 per trade. With options, the base fee is $0 for both Interactive Brokers and Robinhood. Each option contract then costs $N/A at Robinhood and $0.70 at Interactive Brokers. 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 while Interactive Brokers offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Robinhood trails Interactive Brokers by 8,026 total mutual funds, with Interactive Brokers offering 8026 and Robinhood offering 0. And, commission free ETFs deserve a comparison, Interactive Brokers offers 33 commission free ETFs versus Robinhood's total of 0.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers has virtual trading, Robinhood doesn't. 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. Neither Interactive Brokers nor Robinhood offers Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans. All factors considered, when it comes to platform tools, research, and mobile trading, Interactive Brokers posted awards Best in Class - Platforms & Tools and Best in Class - Mobile Trading in 2017, while Robinhood found itself with none of these.
Overall, Interactive Brokers comes out on top with 4.00 stars over Robinhood's 2.50 stars.