Robinhood vs E-Trade 2023
When it comes to navigating the often-complex world of online trading, the right platform can either make or break an investor’s experience. From commission-free trading to a wide range of investment options, investors today have more choices than ever before.
Among the giants in the industry are Robinhood and E*TRADE, two platforms that have revolutionized the online brokerage scene. But how do these two titans compare?
|Robinhood is Better for:||E*TRADE is Better for:|
|Perfect for beginners with its user-friendly mobile apps.||Suitable for experienced investors and active traders.|
|Commission-free trading for stocks, options, and ETFs.||Offers broker-assisted trades and portfolio analysis tools.|
|Cryptocurrency trading including Robinhood Crypto.||Provides a wider range of retirement and custodial accounts.|
|No minimum deposit to start investing.||Advanced trading platforms and news feeds.|
Introducing the Platforms
Robinhood emerged as a disruptor in the online brokerage space, eliminating trading commissions and democratizing stock investing for retail investors. Its mobile-centric approach, coupled with a clean and intuitive interface, has attracted a vast number of young investors.
Robinhood offers a diverse array of features, including Robinhood Gold for margin trading and instant deposits, as well as Robinhood Crypto for cryptocurrency trading.
For a more in-depth look at Robinhood, check out our full review.
E*TRADE, on the other hand, is a veteran in the online trading scene. With a solid reputation built over decades, E*TRADE offers everything from commission-free stock and ETF trades to advanced trading platforms for seasoned investors.
Their emphasis on tools, research, and a wider range of account types positions them as a comprehensive solution for both newcomers and professional traders.
|Type of Service||Online Brokerage||Full-Service Online Brokerage|
|Best Use||Retail investors, Crypto traders||Active traders, Retirement planning|
|Customer Support||Email, In-app support||24/7 Phone, Live Chat, Local Branches|
|Trading Tools||Basic analysis tools, news feeds||Advanced charting, portfolio analysis tools|
|Account Types||Brokerage, Crypto||Brokerage, Retirement, Custodial, Bank|
|Modest Money Overall Rating|
Factor 1: User Experience and Mobile Trading
Robinhood stands out for its superior mobile trading experience
- E*TRADE offers powerful desktop platforms and a functional mobile app.
- Robinhood is favored due to its intuitive design tailored for modern mobile traders.
Robinhood boasts one of the most user-friendly stock trading apps in the industry. With a streamlined interface, even novice investors can effortlessly navigate through their assets, execute trades, or explore new investment options. Their emphasis on mobile trading means users can manage their financial goals on the go without any hitches.
E*TRADE, while providing a competent mobile app, truly shines with its desktop trading platforms. Catering to active traders and experienced investors, the platform offers advanced charting tools, real-time news feeds, and a suite of research and analysis resources. The mobile app, though functional, might feel less intuitive compared to Robinhood’s.
Factor 2: Investment Options and Fees
Robinhood offers commission-free stock, ETF, and options trades
- ● E*TRADE provides a wider range of investment products, including mutual funds.
- ● Robinhood’s straightforward fee structure makes it more appealing to retail investors.
Robinhood sticks to its mission of democratizing finance by offering commission-free trades across stocks, ETFs, and options. While they also venture into cryptocurrency with Robinhood Crypto, the platform lacks certain investment vehicles like mutual funds. Their straightforward approach and absence of trading fees make it an excellent choice for those starting their investment journey.
E*TRADE, as a full-service online broker, offers a vast range of investment options. From stocks and ETFs to mutual funds and fixed-income products, investors have a wide array of choices. While many of their trades are commission-free, they do charge for broker-assisted trades and certain mutual funds. However, their broad product lineup might be enticing for investors seeking variety.
Factor 3: Educational Resources and Research Tools
Robinhood focuses on simple educational resources for beginners
- E*TRADE boasts a vast library of research tools, news, and educational materials.
- While E*TRADE is comprehensive, Robinhood’s concise resources are better tailored for novice investors.
Robinhood provides users with basic educational materials tailored to those new to the stock market. Their news feed, while not as extensive as other platforms, curates relevant articles and updates to keep users informed. The simplicity of their resources aligns well with their user base, primarily composed of beginner investors.
E*TRADE differentiates itself with its rich educational platform. They offer everything from detailed market analysis to webinars and tutorials. Their research tools, backed by reputable third-party providers, offer deep insights into market trends and stock analysis. Experienced investors will undoubtedly appreciate the depth and breadth of E*TRADE’s offerings.
Factor 4: Account Types and Financial Services
E*TRADE extends its services to retirement, custodial, and bank accounts
- Robinhood primarily offers simple brokerage accounts.
- For a wider variety of financial goals, E*TRADE offers more comprehensive solutions.
Robinhood mainly focuses on its brokerage accounts, allowing users to trade stocks, ETFs, options, and cryptocurrencies. The platform’s simplicity and no minimum deposit requirement make it an attractive choice for newcomers. However, when it comes to diversifying financial needs like retirement planning or custodial services, Robinhood lags.
E*TRADE showcases its years of experience by offering a wide range of account types. Beyond the regular brokerage accounts, they offer retirement accounts like IRAs, Roth IRAs, and even custodial accounts for minors. ETRADE’s bank accounts further solidify its position as a holistic financial solution. Whether it’s checking, savings, or even business accounts, ETRADE covers a broad spectrum of financial needs.
Factor 5: Customer Support and Service
E*TRADE boasts 24/7 phone support, live chat, and even local branches
- Robinhood provides basic support mainly via email and in-app channels.
- E*TRADE’s robust customer service infrastructure offers more reliable support.
Robinhood has, in the past, faced criticism for its customer support. While they do assist via email and in-app channels, the absence of phone support or live chat can be a drawback for many. The platform aims to keep things simple, but users might feel the pinch when they encounter issues that require immediate attention.
E*TRADE excels in the customer support department. Their 24/7 phone support means users can reach out any time they face challenges. Additionally, the presence of live chat provides an instantaneous avenue for queries. For those who prefer in-person assistance, E*TRADE’s local branches offer a personal touch that many online-only platforms lack.
The battle between Robinhood and E*TRADE boils down to simplicity versus comprehensiveness. For users seeking an uncomplicated, straightforward platform for commission-free trades, Robinhood stands as an unbeatable choice, especially for those venturing into the world of investing for the first time.
E*TRADE, with its extensive range of financial services and account types, is ideal for those looking to diversify their financial goals. Their seasoned experience in the industry is evident in their robust research tools, educational resources, and exceptional customer support.
In conclusion, while both platforms have their strengths, Robinhood’s intuitive interface and commission-free ethos make it a preferred choice for many, especially newcomers. If you’re keen to embark on your investing journey with ease – click here to sign up for Robinhood and experience a seamless trading journey.