Robinhood vs. E*TRADE

E*TRADE, established in 1982, is a very large broker that helped to disrupt the brokerage industry as one of the earliest on-line brokerage platforms. Robinhood was formed much more recently in 2013, and was besides an industry disruptor because of their primary focus on their mobile app and elimination of commissions for stock/ETF, options, and cryptocurrency trade. While E*TRADE and Robinhood do have some features in common, we will besides look at some of the keystone differences between these brokers to help you determine which one is the properly fit for your investing needs .

Investing in cryptocurrencies, Decentralized Finance ( DeFi ), and other Initial Coin Offerings ( ICOs ) is highly hazardous and bad, and the markets can be extremely volatile. consult with a qualified professional before making any fiscal decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or seasonableness of the information be guaranteed.

Etrade2022V2

  • Account Minimum: $0
  • Fees: No commission for stock/ETF trades. Options are $0.50-$0.65 per contract, depending on trading volume.

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New and Notable

On May 17, 2022, Robinhood announced that it is building a brand modern non-custodial, web3 wallet. The company will begin inviting waitlist customers to join its Beta program in the late summer and make the product by and large available to all Robinhood customers by the end of 2022. On April 7, 2022, Robinhood announced that it rolled out Crypto Wallets to every eligible person on the WenWallets waitlist of more than two million people. According to the caller, all eligible customers who signed up for the waitlist will be able to send and receive any of the cryptocurrencies presently available on Robinhood.

serviceability

Robinhood ’ s web site and app are both designed to be straightforward with a similar expression and feel. Funding an report, checking your account balance and buying office, and other account related tasks are easy to do. Robinhood ’ s streamlined, no-frills app will help you plaza and monitor orders and positions. It is significant to note that stripping the fluid app down to bare essentials is reasonably easier for Robinhood because they entirely focus on retentive stock and ETF positions, american samoa well as cryptocurrencies. The tradeoff for simplicity and ease of use, however, are platforms that can ’ metric ton be customized and have limited chart .

E*TRADE besides provides intuitive and easily to use platforms, but they are not vitamin a clean as Robinhood ’ s platform because the broke has more assets and markets available, including common fund, futures, cook income, and nonprescription ( OTC ) markets, along with screeners, calculators, and educational and market contented. E*TRADE ’ s entire featured mobile app is one of the best available. Although it is not ampere streamlined as Robinhood ’ second app, it is still easy to use and offers deal in all available asset types on its mobile app. E*TRADE ’ s web site makes it bare for beginners to get started, but its double menu interface is not as easy to navigate as the agent ’ south mobile app. The Power E*TRADE and E*TRADE Pro desktop trade platforms are for more active and promote users, respectively, and are both highly customizable .

While Robinhood ’ mho platforms are fabulously easy to use, we give E*TRADE the advantage because of how many more assets and markets are available, combined with the deep features including multiple screeners, analytic tools, calculators, and educational content, deoxyadenosine monophosphate well as ability to customize platforms. That being said, we understand that Robinhood ’ randomness bare bones approach has fans, particularly those who are fresh to investing and not sure what to do with a broad range of tools. As those investors continue to develop, however, the constraints of Robinhood ’ mho platform become harder to overlook .

Trade experience

Desktop Trade Experience

Robinhood is a mobile-first agent, but it calm has a web platform that is politic and childlike to use. That said, Robinhood ’ s web site platform does not come near to the functionality offered by E*TRADE ’ s versatile platforms. Robinhood ’ s desktop platform has basic watchlists, quotes, charts, and news, but does not offer any customization options. furthermore, while standard orders to purchase stocks and ETFs are intuitive and are likely to appeal to newer and younger customers, Robinhood ’ south options order introduction is not closely equally dear as it should be. On peak of this, Robinhood doesn ’ t offer the ability to stage orders or trade directly from charts .

E*TRADE was an early industry adoptive parent of electronic trade and now features multiple deal platforms for the background. The more casual platform is the E*TRADE web site. The web site offers a clean order entry system, and the interface can be customized so that you can control the layout of report, market, and trade information. The other platform, Power E*TRADE, is the agent ’ mho desktop application. Power E*TRADE is an ideal platform for active investors and traders that want to track and trade markets. Power E*TRADE besides includes the ability to select tax lots from the order ticket, charting tools that populate charts with technical analysis patterns, and options psychoanalysis tools that explain what the Greeks are and what they measure. Options order entrance on E*TRADE has besides been improved, with drop down listings for versatile options strategies .

Robinhood and E*TRADE ’ s trade platforms are difficult to compare directly because the approach behind them is then different. If you are looking to trade rather than simply go long, then E*TRADE ’ second platforms are victor in every way. New investors and those looking for a simpleton chopine may however benefit from Robinhood ’ mho platform, but E*TRADE ’ mho web site is designed with the new investor in take care as well and does a good job of selecting the most useful tools and capabilities so it is not submerge. The Power E*TRADE platform is much more robust, with some sophisticated technology options for more experienced investors and traders. We give E*TRADE the edge in the background trade experience because it actually has one, whereas Robinhood ’ second simple is best approach lacks many of the tools and features that traders depend on.

mobile Trade have

similar to their desktop offerings, Robinhood provides a simpleton mobile app that is designed as the company ’ s primary interface to the Robinhood deal platform. Robinhood ’ s mobile app has newsworthiness and basic company information for account owners, but is not customizable in any sense, and does not have many tools or calculators to assist you in investing. Charting on the Robinhood mobile app is besides weak in general and you can ’ metric ton trade directly from charts. Unsurprisingly, the mobile app besides lacks conditional orders and doesn ’ triiodothyronine lashkar-e-taiba you enter multiple orders simultaneously or stage orders for late entrance .

E*TRADE offers two mobile apps that correspond to the web site and Power E*TRADE background platforms. If you are looking for a dim-witted experience, the E*TRADE mobile app supports watchlists, market inquiry, quotes, and portfolio management. The E*TRADE mobile app is an excellent choice for new and less active account holders. The Power E*TRADE mobile app is designed for active traders and, like the basic mobile app, supports investment research, real-time data pour, and market news, but besides supports more gain trade like executing an options strategy. E*TRADE ’ second apps do not support cook income trade, but do support all other asset types and markets that the broker offers. In the app, a unmarried trade tag can be used to trade stocks, ETFs, futures, and basic and complex options strategies up to four legs .

We give E*TRADE the advantage over Robinhood when it comes to mobile deal. Robinhood ’ s mobile app is very easy to use, but E*TRADE ’ s basic mobile app provides offerings for newer and more passive investors, while the Power E*TRADE fluid app provides a big deal of customization, tools, and features for more active traders. This gives you the choice of picking the app that best suits your investing style.

range of Offerings

E*TRADE has a much wider compass of offerings than Robinhood. only those looking to trade cryptocurrencies would choose Robinhood when it comes to range of offerings, as it is one of the asset types E*TRADE does not presently offer .

Robinhood vs E*TRADE Range of Offerings
Asset E*TRADE Robinhood
Short Sales  Y N
No-Load, No-Fee Mutual Funds  4,440+ 0
Bonds  15,226 N
Futures/Commodities  Y N
Futures Options  Y N
Complex Options  Y (4 legs) Y (4 legs)
Robo Advisory Y N
Cryptocurrency  Bitcoin Futures Only Y
International Exchanges Y N
Forex  N N
Fractional Shares  Y Y
OTCBB and Penny Stocks Y N
Asset E*TRADE Robinhood

club Types

Both Robinhood and E*TRADE offer the criterion orders such as market, restrict, and stop-limit orders. merely E*TRADE offers contingent, bracketed, one-triggers-the-other ( OTO ), one-cancels-the-other ( OCO ), one-triggers-a-one-cancels-other ( OTOCO ) orders that are not available on Robinhood. here again, E*TRADE has a clear advantage in the arrange types available to its customers .

trade technology

When it comes to trading technology, the gap between the brokers isn ’ deoxythymidine monophosphate deoxyadenosine monophosphate big as some of the other categories. Robinhood and E*TRADE both accept payment for order menstruation and use their own proprietary organization for routing orders, but only E*TRADE provides any data about the effectiveness of their spread-eagle systems. The average prison term to fill an order at E*TRADE is between 0.11 and 0.19 seconds depending on whether a stock is part of the S & P 500 or not, with price improvement of $ .0007 per share and $ 3.38 per contract on option orders. Neither agent offers backtesting of trade strategies. E*TRADE offers portfolio margining while Robinhood does not, but Robinhood allows for fractional share trading that E*TRADE alone offers in its dividend reinvestment and robo-advisor offerings. last, while both companies have a banal loanword program, E*TRADE shares tax income with the account holder and Robinhood keeps all of the tax income to itself .

In lighter of Robinhood ’ s miss of foil on the potency of its rout system and their generating the majority of their gross from payment for order hang ( PFOF ), we believe E*TRADE has better trade technology for customers. Those with smaller report balances, however, may find Robinhood ’ s documentation for fractional shares appealing .

Costs

Robinhood and E*TRADE do not charge commissions for livestock or ETF trades. For options trade, E*TRADE charges $ 0.65 per contract if less than 30 trades per quarter, and $ 0.50 if 30 trades or more, but Robinhood does not charge anything for options trade. There are no account open, sustenance, or inaction fees at either agent. margin trade is more competitive at Robinhood, which charges a monthly tip of $ 5 for $ 1,000 of allowance and grocery store data and Morningstar reports, and fair 2.5 % interest on gross profit exceeding $ 1,000. E*TRADE ’ s margin rates vary between 8.70 % on $ 10,000 balances to 5.45 % on an bill with a $ 1 million libra .

Robinhood charges $ 20 to send a check, compared to $ 10 at E*TRADE, and Robinhood does not charge for domestic or international wires, where E*TRADE does not charge a tip for domestic wire transfers into an account and $ 25 for external wires and outgoing domestic transfers. Robinhood does not charge a conduct commission for cryptocurrency trade, which E*TRADE does not have. Robinhood does not offer any of the take after, but E*TRADE charges $ 6.95 to trade OTC, OTCBB, grey market, and OTC-traded alien securities or $ 4.95 if the account has 30 or more trades per quarter. Further, E*TRADE charges $ 1.50 per contract per side for futures and $ 2.50 for Bitcoin futures. E*TRADE besides makes live brokers available for a tip of $ 25 per trade that is waived during prolong hours and overnight sessions between 4am and 7am Eastern.

If you are merely looking to trade in stocks, ETFs, options, and cryptocurrencies, and are using allowance, you would pay less at Robinhood because they don ’ t charge for options or cryptocurrency trade and have lower allowance rates. however, if you want access to fix income, common funds, the over-the-counter markets in addition to no commission stock and ETF trade, you need to use E*TRADE, whose rates are fair but not the lowest available. That being said, Robinhood has the border american samoa far as the lowest costs if you are satisfied with the more restrict range of offerings .

Account and Research Amenities

This category is not close, with E*TRADE providing a lot more than Robinhood in the direction of research and report amenities. Both brokerages provide news, video, podcasts, and newsletters. Robinhood provides Morningstar ratings for stocks, but only to customers that pay a $ 5 per month to be Robinhood Gold customers. E*TRADE provides access to third party research from Moody ’ randomness, Thomson Reuters, Morningstar, MarketEdge, Trefis, and others free of bang. Both companies besides have a dividend reinvestment design ( DRIP ). Customers enrolled in Robinhood ’ s deposit sweep program pays interest of 0.30 %, which is higher than the 0.01 % offered through E*TRADE reciprocal fund sweeps for their cope accounts .

While there were some comparisons above, there is a meaning deviation between the companies on research amenities. Robinhood does not offer any stock, ETF, reciprocal investment company, options, or specify income screeners, while E*TRADE has robust offerings for all of these screeners and the ability to shield for environmental, social and administration ( ESG ) criteria and socially creditworthy invest ( SRI ), vitamin a well as thematic screens, such as robotics or infrastructure. finally, both platforms provide charting, but Robinhood ’ mho offer is much more basic and doesn ’ metric ton allow drawing or customization, while E*TRADE ’ s chart tools are much more full-bodied. E*TRADE is the clear winner for research and report amenities .

portfolio analysis

E*TRADE has importantly better portfolio analysis tools than Robinhood, which only has identical basic basic account information such as balances, percentage derive, margin, buying world power, dividend history, and tax reports. E*TRADE has all that and a lot more, including an across-the-board offer of account analytics, calculators, portfolio analysis, ROI, and multiple other tools. E*TRADE has a clear advantage over Robinhood for portfolio psychoanalysis .

education

Robinhood offers educational resources to its customers, but its focus is more on providing newsworthiness and content to make finance easier to grasp for newer investors. Robinhood ’ s educational content provides definitions and educational contentedness about investment terminology vitamin a well as more than 650 promulgated articles. E*TRADE has a batch of estimable data for new investors covering long-run induct, tax plan, and options and futures. E*TRADE besides recently introduced Virtual Learning Environments, which are full-day structured on-line events with target learning objectives, such as founder options .

E*TRADE has a more complete education offer than Robinhood because of their virtual determine environment, much more content on long-run invest and design, and exhaustive resources for brand new investors .

Customer Service

Robinhood does not offer phone support, entirely providing customer overhaul through the app and web site. E*TRADE offers phone subscribe, but they have experienced a meaning addition in hold times to get through. Getting person on the call with E*TRADE took 44 seconds to reach person from 2017 through 2019, but the significant increase in customers and trade natural process since the Covid pandemic has resulted in a 65 % addition in inquiries that brought their average hold time to more than 11 minutes. E*TRADE is working to ramp up their capacity .

tied with the long agree times, having customer support you can call makes E*TRADE the achiever in this category. E*TRADE has stated its purpose to continue providing phone-based support and improve on hold times. While younger, tech-savvy investors may be more comfortable with precisely electronic means of communication, there are batch of investors who want to speak with person when they have questions about their fiscal accounts.

security

Both Robinhood and E*TRADE offer two-factor authentication arsenic well as face or fingerprint biometric login for their mobile apps. many brokers, including E*TRADE, supplement Securities Investors Protection Corporation ( SIPC ) policy with extra insurance policies. Robinhood does not offer any protection beyond the SIPC protection. Regarding report security, E*TRADE did not suffer any dangerous platform outages in 2020, but Robinhood suffered significant outages in February and March 2020 because their systems could not handle the stress of the increased action on its platform. Robinhood has besides suffered data breaches, including one in November 2021 that involved 7 million customers .

E*TRADE has better security because they provide policy in excess of SIPC coverage and did not have outages or data breaches. Robinhood falls short in all three categories .

Our verdict

While both E*TRADE and Robinhood have something to offer to their respective customers, E*TRADE is the clearly better choice for most investors and traders. They have strong offerings that support multiple markets, allow customers to customize their platforms, and find investment opportunities from across-the-board screeners. Robinhood ’ sulfur limited offer of fair stocks, ETFs, options, and cryptocurrencies pales in comparison to the width of offerings, analytics, and tools available on E*TRADE. While options do not have commissions with Robinhood, the miss of monetary value improvement information from Robinhood on equities, ETFs, and options makes us question if commissions and a better, diaphanous fill may not benefit customers more .

overall, Robinhood ’ s offerings don ’ t pit up well with many larger on-line brokers, including E*TRADE. While there is nothing incorrectly with simplicity as an approach, Robinhood will have to add to its offerings to be more competitive with the stronger brokers .

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Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive examination reviews and ratings of on-line brokers. Our reviews are the result of months of evaluating all aspects of an on-line broke ’ south platform, including the exploiter experience, the quality of trade executions, the products available on its platforms, costs and fees, security, the mobile experience and customer serve. We established a rating scale based on our criteria, collecting thousands of data points that we weighed into our star-scoring system. Read our full moon methodology .

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