Charles Schwab vs. Robinhood: 2023 Comparison
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In some ways, Charles Schwab and Robinhood are similar: Both brokers will allow you to trade stocks and exchange-traded funds with no commission, and both offer fractional shares so investors can buy slices of public companies with small amounts of money.
But where they differ is in the level of service provided. Charles Schwab is a well-rounded broker with offerings for every type of investor. Retirement savers will find a large selection of no-transaction-fee mutual funds, active traders will get access to powerful trading platforms and advanced trading strategies like futures, and those who want to be completely hands off can turn to Schwab's financial advisor services.
Robinhood, on the other hand, caters more to active investors who want to trade stocks, options, ETFs and cryptocurrency through mobile. But the company did roll out IRAs with a 1% match in Dec. 2022. Robinhood also stands out for providing initial public offering access and free trades — particularly on options and crypto, where other brokers still charge fees.
Charles Schwab is best for:
Beginner investors.
Advanced traders.
Investors seeking no-minimum index funds.
Investors who rely on premium research.
Charles Schwab at a glance
Account minimum | $0. |
Stock trading costs | $0. |
Options trades | No base commission; $0.65 per contract. |
Account fees (annual, transfer, closing, inactivity) | No annual or inactivity fee; $50 for full or $25 for partial transfer out of assets. |
Number of no-transaction-fee mutual funds | Over 7,100 no-transaction-fee mutual funds. |
Tradable securities |
|
Trading platform | Three platforms offered with no trade minimums or fees: StreetSmart Edge (desktop platform), Schwab.com and StreetSmart Central. |
Mobile app | Two mobile apps with above-average capabilities: Schwab Mobile and StreetSmart Mobile. |
Research and data | Research from more than 20 providers including Moody's, Morningstar, Recognia, and Thompson Reuters, plus more in-house generated commentary and tools. |
Customer support options (includes how easy it is to find key details on the website) | Phone, email, chat 24/7, and in-person support available at branches Monday through Friday 8 a.m. to 5 p.m. Some branches have Saturday hours. |
» Read our full review of Charles Schwab
Robinhood is best for:
Mobile users.
Individual taxable accounts and IRAs.
Margin accounts.
Robinhood at a glance
Account minimum | $0 for brokerage accounts, Robinhood Gold accounts and IRAs. |
Stock trading costs | $0. |
Options trades | $0. Options not currently available in IRAs. |
Account fees (annual, transfer, closing, inactivity) | No annual, inactivity or ACH transfer fees. $100 ACAT outgoing transfer fee. (Robinhood Gold costs $5 a month.). Matching funds in IRAs may be taken back if money is withdrawn after less than five years. |
Tradable securities | • Stocks. • ETFs. • Options. (Not available in IRAs.) • Cryptocurrency. (Not available in IRAs.) • American Depositary Receipts for over 650 global companies. • Fractional shares. |
Crypto availability | 18 coins in 48 states. (Not available in IRAs.) |
Number of no-transaction-fee mutual funds | Not rated. |
Trading platform | Web platform is simple but meets basic investor needs. |
Mobile app | Mobile trading platform includes customizable alerts, news feed, advanced charting and ability to listen live to earnings calls. |
Research and data | News available from Benzinga, Reuters, Bloomberg and WSJ. Gold members have access to research from Morningstar, Nasdaq, Nasdaq Totalview level II Market Data for an additional $5 per month. Portfolio recommendations available for IRAs for no additional charge. |
Customer support options (includes how easy it is to find key details on the website) | Email, social media, chat, in-app request-to-call service 24/7. |
» Read our full review of Robinhood
Want to compare more options? View our full list of the best brokers for stock trading.
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