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. Schwab also now owns the popular thinkorswim trading platform.
Robinhood, on the other hand, caters more to active investors who want to trade stocks, options, ETFs and cryptocurrency through a mobile app. But the company did roll out IRAs several years ago, and it offers a lucrative 1% match (3% with a $50 annual fee for its Robinhood Gold membership). This feature and the broker's movement toward providing a more well-rounded offering and better customer service earned it a place on our list of the best IRAs this year.
Read more about each broker below.
Charles Schwab is a great legacy broker that offers a large fund selection of funds, multiple trading platforms (including the legendary thinkorswim platform), 24/7 phone and chat support and extensive research. Schwab also offers an impressive list of IRAs including custodial and inherited accounts. Schwab gives new investors $50 to split across the top five stocks in the S&P 500 and highlights educational materials specifically for people who are just getting started. Unfortunately, Schwab does not offer an IRA match nor does it have an impressive interest rate on uninvested cash.
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 | $0.65 per contract |
Account fees (annual, inactivity, closing) | Annual fee: $0 Inactivity fee: $0 Closing fee: $0 |
Interest rate on uninvested cash | 0.05% |
Number of no-transaction-fee mutual funds | 7,774 |
Tradable securities | Stocks, mutual funds, ETFs, options, bonds, futures, futures options, forex |
Trading platform | Five: Schwab.com, Schwab Mobile and thinkorswim for web, desktop and mobile |
Mobile app | Available for iOS and Android |
Research and data | Over a dozen, including Morningstar, Refinitiv/LSEG, Argus, Vickers and Computrade/Market Edge |
Customer support options (includes how easy it is to find key details on the website) | 24/7 phone and chat support |
» Read our full review of Charles Schwab
Robinhood has a slick platform, low costs, an impressive amount of investable assets, low options trading fees and access to crypto. Robinhood also offers 24/7 chat support and extended hour phone support during the week. If you invest through a Robinhood IRA you can get a 3% match on your contributions with a $50 annual Robinhood Gold membership fee. Investors can still earn a 1% match even without the annual fee. Unfortunately, Robinhood doesn't have the best access to data and research or any access to mutual funds.
Robinhood is best for:
- Mobile-first investors.
- IRA investors.
- Margin traders.
Robinhood at a glance
Account minimum | $0 for brokerage accounts, Robinhood Gold accounts and IRAs. |
Stock trading costs | $0. |
Options trades | $0 for equity options. $0.50 for index options, or $0.35 for Gold accounts. |
Account fees (annual, transfer, closing, inactivity) | No annual or inactivity fees. $100 ACAT outgoing transfer fee. Robinhood Gold costs $5 a month or $50 per year. Matching funds in IRAs may be taken back if money is withdrawn in less than five years. Instant withdrawals cost 1.75% of the amount withdrawn, with a minimum fee of $1 and a maximum of $150. |
Interest rate on uninvested cash | 0.01% for free accounts, 3.35% for Gold accounts |
Tradable securities | Stocks, ETFs, Options, Cryptocurrency, American Depositary Receipts for over 650 global companies, Futures, Fractional shares. Bonds only available in the form of bond ETFs. |
Number of no-transaction-fee mutual funds | Not rated; no mutual funds. |
Trading platform | Robinhood's mobile and web platforms are known for their smooth sign-up, funding and trading processes. The broker now also offers a desktop platform, Robinhood Legend. |
Mobile app | Mobile trading platform includes customizable alerts, news feed, advanced charting and ability to listen live to earnings calls for some companies. Reviews are mostly positive, although the average star rating on both iOS and Android is below the 4.5 star line. |
Research and data | Access to professional research from Morningstar and Level II market data from the Nasdaq Stock Exchange (with Gold subscription). |
Customer support options (includes how easy it is to find key details on the website) | 24/7 chat support. Phone support available from 7:00 a.m. ET to 9:00 p.m. ET, Monday - Friday. Decent suite of educational articles and webinar events, and an easily-navigable website. |
» Read our full review of Robinhood
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Want to compare more options? View our full list of the best brokers for stock trading.
Methodology
How do we review brokers?
All NerdWallet reviews and lists of the best investing products are created by our editorial team of full-time writers and editors, independent of any business relationships. In this case, our investing team's comprehensive review process evaluates and ranks the largest U.S. brokers by assets under management, along with emerging industry players. Our aim is to provide an independent, balanced assessment of brokerages to help arm you with information to make sound, informed judgments on which ones will best meet your needs. Our highest priority is maintaining editorial integrity.
We collect data directly from brokerages through detailed questionnaires and conduct first-hand testing and observation through demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the brokerages and our specialists’ hands-on research, fuel our proprietary assessment process that scores each broker's performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
