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 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. Option contracts are pricier at Interactive Brokers, costing $0.70 versus $0 at Robinhood. 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 provides its clients with Stock Trading and Options Trading while Interactive Brokers provides clients access to Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Robinhood trails Interactive Brokers by 10,051 total mutual funds, with Interactive Brokers offering 10051 and Robinhood offering 0. And, commission free ETFs deserve a comparison, with Interactive Brokers having the upper hand thanks to its 45 available commission free ETFs compared to Robinhood's offering of N/A.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers offers virtual trading 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. Clients can have Debit Cards at Interactive Brokers while customers at Robinhood can have none of these. All factors considered, when it comes to platform tools, research, and mobile trading, Interactive Brokers was rated Best in Class - Mobile Trading, while Robinhood was rated none of these.
Overall, Interactive Brokers boasts 4.50 stars versus Robinhood's 2.50 stars.