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 Table of Contents: Masthead StickySummary List PlacementRobinhood vs. E*TRADE: The biggest differences

Robinhood and E*TRADE are two popular online brokerages offering low-cost investment options. If you’re an active trader who prefers the self-directed route, you can avoid account minimum requirements and commissions with both investment apps.

While the two both offer commission-free trades on stocks, ETFs, and options, E*TRADE presents a more extensive selection of account types and investment choices. Robinhood and E*TRADE also receive payment for order flow (PFOF is the compensation brokerages receive in return for directing customer orders to third parties for execution), but their fee structures aren’t exactly identical.

Editor’s rating

3.94 out of 5

Editor’s rating

4.55 out of 5

Fees

0% ($5/month Robinhood Gold)

Fees

0% trading; 0.30% automated accounts (0.35% to 1.25% managed accounts)

Account minimum

$0 ($1 fractional shares; $2,000 Robinhood Gold)

Account minimum

$0 ($500 Core Portfolios; $25,000 to $250,000 managed accounts)

Better Business Bureau rating

F

Better Business Bureau rating

F

Promotion

None at this time

Promotion

Get up to $3,000 when you open a new brokerage or retirement account

Open Account
Open Account

Robinhood and E*TRADE’s account features and fees also vary. Keep reading to see which brokerage is best for you.

Account types

Individual brokerage
Margin

Account types

Individual brokerage
Joint brokerage
Margin
Custodial
Traditional IRA
Roth IRA
Custodial IRA
SEP IRA
Inherited IRA

Investment choices

Stocks, ETFs, options, cryptocurrencies, and ADRs

Investment choices

Stocks, ETFs, bonds, options, mutual funds, futures, and CDs

Account perks

Commission-free trading
Fractional shares
Cash management options
Cryptocurrency trading and margin trading
Web platform and mobile access

Account perks

Commission-free trading; margin trading
Cash management options
Automated investing and managed portfolios
Two mobile platforms: E*TRADE app and Power E*TRADE app

Human advisors available?

No

Human advisors available?

Yes — Set up a Blended Portfolios, Dedicated Portfolios, or Fixed Income Portfolios account to work with a financial consultant

Robo-advice?

No

Robo-advice?

Yes — personalized and automated investment management available through Core Portfolios

Is Robinhood right for you?
Pros

No minimums; free trades on stocks, ETFs, options, and cryptocurrencies
No per-contract options fees; fractional shares available
Cash management options and margin trading
Easily navigable web interface and mobile app 

 

Cons

No joint brokerage accounts, IRAs, or custodial accounts
Only Robinhood Gold members can access professional investment research
Doesn’t allow traders to name beneficiaries

Robinhood is an online investment app offering individual brokerage accounts and commission-free stocks, ETFs, and options. The app has no fees or minimum account size requirements (with the exception of its Robinhood Gold margin account), and it also allows active traders to exchange cryptocurrencies, …read more

Source:: Business Insider

      

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Robinhood vs. E*TRADE: How the investing apps compare

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