Are you confused about whether to choose Charles Schwab vs Robinhood as a broker for your investing needs?
In this side-by-side comparison, we analyse Charles Schwab vs Robinhood to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.
Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!
Charles Schwab vs Robinhood: In a Nutshell
all account types (US investors only)
Founded in 1971, Charles Schwab Corporation, commonly known as Schwab, is a leading American brokerage and banking company.
It pioneered the concept of discount brokerage, offering commission-free online trades and providing access to a vast selection of investment options.
Moreover, Schwab operates as a full-service bank, providing a range of banking products such as checking accounts, savings accounts, mortgages, and loans.
US beginner investors
Robinhood offers commission-free trading, meaning users can buy and sell stocks, cryptocurrencies, options, and ETFs without paying any fees.
Robinhood offers a user-friendly interface that simplifies the investing process. It provides real-time market data, personalized news feeds, and price alerts to inform users.
It is regulated by the Securities and Exchange Commission (SEC), and it is a member of the Securities Investor Protection Corp. (SIPC). Your assets are protected up to $500,000 (of which up to $250,000 is for cash).
Pros and Cons
Charles Schwab
Pros
- 0% commissions on stocks and ETFss
- Accoun types: Individual, joint, IRAs, education savings accounts, 529 education accounts, SEP IRA and solo 401(k)
- Excellent research tools
- Acess to fractional shares
- Large selection of mutual funds
- No minimum account
Cons
- No direct investing in Crypto (only through futures, ETFs, etc)
- No access to European stocks
Robinhood
Pros
- Commission-free trades
- IRAs and 401(k)
- Fractional shares
- IPO Access
- No account minimum
Cons
- No mutual funds or bonds
- Limited customer support
Charles Schwab vs Robinhood: Side-by-side Comparison
- General Information
- Founded in
- Demo Account
- Account Minimum
- Interest on unninvested cash (annually)
- Products
- Stocks
- ETFs
- Bonds
- Funds
- Options
- Futures
- CFDs
- Leverage Products
- Forex
- Cryptocurrencies
- Commodities
- Fees
- US stocks
- EU stocks
- ETFs
- Cryptocurrencies
- Custody Fee
- Inactivity Fee
- Withdrawal Fee
- Connectivity Fee
- Currency Conversion Fee
- Security
- Regulators
- Investor Compensation Scheme(per person, per institution)
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
