Comparing Robinhood vs. E*TRADE involves contrasting one of the oldest brokers and one of the newest. Robinhood boasts four times as many customer accounts as E*TRADE, yet over 5 million investors trust E*TRADE as their online broker. Why are Robinhood and E*TRADE relied on by so many traders, and which is the best online broker for you? Read on for a head-to-head comparison of Robinhood vs. E*TRADE.
Robinhood vs. E*TRADE: At a glance
Offer | Robinhood | E*TRADE |
---|---|---|
Rating | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
Commissions | $0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold | Commission-free; other fees apply |
Account Minimum | $0 | $0 |
Next Steps | Open Account for Robinhood Read Full Review | Open Account for E*TRADE Read Full Review |
Robinhood vs. E*TRADE: Commissions and fees
Both Robinhood and E*TRADE are low-fee brokers for investors who trade exclusively stocks and ETFs. Derivatives and crypto traders will find Robinhood's commission-free trading of special interest. Mutual fund investors will find E*TRADE's suite of more than 6,000 no-load, no-commission mutual funds appealing. In this round of Robinhood vs. E*TRADE, the victor depends on you as an investor.
Robinhood pioneered zero-commission trading, and has stuck to that model. Investors using Robinhood enjoy $0 commissions on all trades of stocks and ETFs. For that reason, Robinhood is consistently ranked as one of the best ETF brokers. Robinhood continues to push the envelope with $0 commissions on cryptocurrency and options trades. Combine that with no account maintenance fee, and you've got a very low cost broker.
Like many brokers, E*TRADE now offers zero-commission stock, mutual fund, and ETF trading. However, investors are charged up to $0.65 per option contract, about the industry average. (Investors who make 30 or more stock, ETF, or options trades per quarter are charged $0.50 per contract.) E*TRADE offers over 6,400 no-load, no-commission mutual funds.
Robinhood | E*TRADE | |
---|---|---|
Stock & ETF commissions | $0 | $0 |
Options commissions | $0 | $0 + up to $0.65 per contract |
Crypto commissions | $0 | N/A |
Mutual fund commissions | N/A | $0 (over 6,000 no-load, no-commission) |
Account transfer fee | $100 | $75 |
Account maintenance fee | $0, or $5 per month for Robinhood Gold | $0 |
Data sources: Robinhood and E*TRADE.
Robinhood vs. E*TRADE: Investments available
Like most brokers, both Robinhood and E*TRADE help customers trade stocks and ETFs. However, if you seek alternative investment options, there is a distinct divide in the Robinhood vs. E*TRADE comparison. Robinhood's innovative DNA means that it has few, but often groundbreaking investment options. Robinhood offers fractional shares. With fractional shares, those with less to invest can own some of the biggest names in the market. Additionally, Robinhood offers cryptocurrencies, making it one of the few brokers to do so.
E*TRADE offers a broader range of investments to its clients. Beyond stocks and ETFs, investors can purchase over 6,500 mutual funds, including over 6,400 no-load funds. That is part of why E*TRADE is consistently among the best brokers for mutual funds. Additionally, E*TRADE customers can buy CDs and bonds, which may be an important part of a well-diversified portfolio. For traders with suitable risk tolerance, E*TRADE offers options and futures.
The suitability of Robinhood vs. E*TRADE depends in large part on the investments you want to hold. For crypto, options, and fractional share traders, Robinhood may be a good bet. For investors seeking mutual funds, CDs, bonds, and futures, E*TRADE may be the clear choice. Investors buying mostly stocks and ETFs may find both Robinhood and E*TRADE attractive.
Robinhood | E*TRADE | |
---|---|---|
Stocks and ETFs | Yes | Yes |
Fractional shares | Yes | No |
Options | Yes | Yes |
Mutual funds | No | Over 6,500 Total (over 6,400 no-load) |
CDs | No | Yes |
Bonds | No | Yes |
Futures | No | Yes |
Crypto | Yes | No |
Currencies | No | No |
Data sources: Robinhood and E*TRADE.
Robinhood vs. E*TRADE: Account types available
For many investors, a taxable brokerage account may not be the most efficient place to invest in and store assets. These brokers differ a lot here. E*TRADE offers a very wide range of account types beyond the traditional taxable individual account. They include traditional and Roth IRAs, SEP and SIMPLE IRAs, beneficiary IRAs, and IRAs for minors. Additionally, customers can rollover a 401(k) onto the E*TRADE platform. E*TRADE is also considered one of the best robo-advisors, with a suite of managed portfolios. Customers seeking to keep all of their assets under one roof may find E*TRADE's checking, savings, and credit card accounts of special interest.
Robinhood offers users a taxable brokerage account, a traditional IRA, and a Roth IRA. Users can open a margin account, but only Robinhood Gold subscribers get the best rate.
Robinhood's streamlined approach has launched it into the spotlight. But E*TRADE has much more to offer investors seeking retirement, robo-advisor services, banking, or other accounts.
Robinhood | E*TRADE | |
---|---|---|
Taxable brokerage | Yes | Yes |
Joint tenant | No | Yes |
Margin | Yes | Yes |
Robo-advisor | No | Yes |
Traditional IRA | Yes | Yes |
Roth IRA | Yes | Yes |
Other IRA | No | Yes, SEP IRA, IRA for Minors, Beneficiary IRA, SIMPLE IRA, Rollover IRA |
Custodial | No | Yes |
Checking | No, but offers a spending account | Yes |
Savings | No, but offers brokerage cash sweeps | Yes |
Credit card | No | Yes |
Data sources: Robinhood and E*TRADE.
Robinhood vs. E*TRADE: Mobile app and trading platforms
Investors evaluating Robinhood vs. E*TRADE will find key differences in mobile apps and trading platforms. For traders who value a sleek mobile app without bells and whistles, Robinhood may be a strong choice. E*TRADE offers a complex desktop suite best for active traders and options traders.
Robinhood was one of the pioneers of mobile trading, and still ranks as one of the best stock trading apps. A no-frills platform, Robinhood has made trading controversially easy. With little more than portfolio information and transaction tabs, the app is simple and visually appealing. Robinhood's desktop version is very similar to the mobile app.
E*TRADE offers a simple, easy-to-navigate mobile and desktop platform. With market data, commentary, research, and screeners, the basic platform is well suited to active traders. The Power E*TRADE platform sports a sleek dashboard and impressive tools for derivatives traders.
Final take
Comparing Robinhood vs. E*TRADE depends on the investing style and priorities of individual investors. Both brokers offer low fees and a user-friendly trading platform. However, each broker better suits a different style of customer.
Robinhood is an industry pioneer, offering a highly accessible mobile application and zero-commission trading. It has continued to push the boundaries of what a broker is and does by offering cryptocurrency as an investment option. Derivatives traders should note its uncommon $0 options contract fee. Investors who seek alternative investments and don't need the bells and whistles offered by many brokers should consider Robinhood.
E*TRADE is an established broker, as is evident in its wide range of investment and account offerings. Investors seeking more than a taxable brokerage account and basic IRAs may find value in E*TRADE's many retirement, robo-advisor, and banking accounts. Readers who invest in mutual funds, CDs, bonds, and futures will want to consider that these investments are available to E*TRADE customers. Add extensive market research and a powerful options dashboard, and E*TRADE may be the best broker for you.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
Account | Fees | Account Minimum | |
---|---|---|---|
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold | $0 | Open Account for Robinhood |
Rating image, 5.0 out of 5 stars. 5.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 | $0 | Open Account for Fidelity |
Rating image, 4.0 out of 5 stars. 4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 per trade | $0 | Open Account for J.P. Morgan Self-Directed Investing |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Commission-free; other fees apply | $0 | Open Account for E*TRADE |
FAQs
It depends on what you're looking for. Robinhood offers cheaper options trading and a beautiful user experience. But it's not as fully featured. For example, only E*TRADE offers a robo-advisor.
Yes. It offers a wide variety of zero-commission ETFs and mutual funds. Its stock trading platform is very beginner friendly.
Our Brokerages Experts
By:Charlie Pastor, CFP®
Certified Financial Planner®, Founder of Damn Good Planning
Charlie Pastor, CFP® is a full-time financial planner dedicated to overserving the underserved. He has a degree in Finance, Accounting, and Personal Financial Planning from the University of Colorado Boulder. His professional experience includes founding a Registered Investment Advisor firm dedicated to serving young professionals. Outside of writing for The Ascent, Charlie enjoys serving as political advocacy chair for the Financial Planning Association of Colorado.
By:Cole Tretheway
Cole Tretheway is a full-time personal finance writer whose articles have been featured on The Ascent and The Motley Fool. He has a degree in English with a Certificate in Professional and Technical Communication from California Polytechnic University, SLO.
Fact CheckedEric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.