Robinhood and eTrade, both work for the same purpose, featuring online brokerage facilities on mobile and web platforms. But there are some thin lining between them that differentiates these two eBrokers.
For example, Robinhood's functionality is straight and dedicated to a few investment scopes, whereas eTrade is dedicated to offering users various investment schemes and EFts.But if you think of the quality of mobile apps, Robinhood has the upper hand.
So, each of them has the capability to be the best broker of the time from their individual grounds. But, if so, how do you know which of them would help you most in online investment? eTrade or Robinhood? You must go through Robinhood vs eTrade side-by-side comparison to find the answer.
Let's dig into the facts to know what lies beneath without any further ado.
It's going to be a neutral review. AtoZ Markets is in no way responsible for any opinions made by the writer.
About Robinhood
image credit: Robinhood
Robinhood is a commission-free stock trading app. You can buy and sell stocks on Robinhood without paying a commission.
The app offers a wide variety of features, including:
- A user-friendly interface
- Real-time market data
- A wide variety of investment options
- Tools to help you make informed investment decisions
- The ability to buy and sell stocks without paying a commission
Robinhood is ideal for investors who want to trade stocks without paying a commission. The app offers a wide variety of features, including real-time market data, tools to help you make informed investment decisions, and the ability to buy and sell stocks without paying a commission.
About eTrade
image credit: eTrade
eTrade is an online brokerage firm that allows customers to trade stocks, options, and other securities. The company was founded in 1993 and is one of the largest online brokers in the world.
Read our Full Review of eTrade
Customers can open an account and trade stocks and other securities online, using a computer or a mobile device. eTrade also offers a wide range of investment products, including mutual funds, ETFs, and bonds. The company has over 4 million customers and is headquartered in New York City.
Robinhood vs eTrade- Which One Delivers the Better Outcome?
Let's keep both eTrade and Robinhood on the same table. Then, we'd know what's the best online finance service provider in general.
eTrade vs Robinhood: Trading Experience
We can divide the user experiences into two sections depending on the platform type.
Desktop Trading Platforms
Robinhood and eTrade are two of the most popular online brokerages. Both offer a desktop trading experience, but there are some key differences.
Robinhood's desktop trading platform is very simple. The layout is minimalistic, and there are few features. This can be good or bad, depending on your needs. eTrade's desktop trading experience is more complex, but it also offers more features.
One thing to note is that Robinhood does not offer a web trading platform. Instead, all trading must be done through the desktop app. eTrade offers both a desktop and web trading experience.
Overall, I think eTrade's desktop trading experience is better. It's a bit complex but also offers more features. However, if you're looking for a simple, minimalist trading experience, Robinhood may be a better option.
Mobile Trading Apps
The Robinhood app is well designed and easy to use. You can easily view your portfolio, recent transactions, and order history. The app also offers a variety of charts and analysis tools to help you make informed investment decisions.
The eTrade app is also well designed and easy to use. It has most of the options required for transactions and queries. However, this app does have one major downside – it can be a bit slow and glitchy at times.
So, which app is better? I would say the Robinhood app is the better option. It's well designed, easy to use, and offers a variety of helpful features. The eTrade app is also good but not better than Robinhood. So, here, Robinhood takes the lead in the Robinhood vs eTrade debate.
Usability
In terms of usability, Robinhood is the clear winner. Its user interface is sleek and easy to navigate, and its mobile app is one of the best in the industry.
On the other hand, eTrade's user interface can be a bit confusing, and its mobile app is not as user-friendly as Robinhood.
If you're looking for a user-friendly online brokerage with great mobile apps, Robinhood is the best option. But when you're looking for more features and flexibility, eTrade is a good choice.
Fees of eTrade and Robinhood
First, let's take a look at the fees charged by Robinhood. Robinhood does not charge any commission fees for stock or ETF trades. However, this platform charges a $6 fee for margin trades. In addition, Robinhood also demands a $2 fee for each ACH transfer.
Now let's talk about fees charged by eTrade. eTrade charges a commission fee of $6.95 for stock and ETF trades. eTrade doesn't cut any commission fees for margin trades. Along with that, eTrade takes a $25 fee for each short sale. eTrade also notes a $0.50 charge for an option contract. Not only that, eTrade charges a $0.30 fee for a single mutual fund trade too.
As you can see, Robinhood charges significantly less in commission fees than eTrade. eTrade does not charge any commission fees for margin trades only, which means this site can be beneficial for investors who perform margin trades frequently. eTrade also charges a lower fee for mutual fund trades than Robinhood. Both the brokers do not require account minimums.
Robinhood vs. eTrade: Investments available
Like the majority of brokerage firms Robinhood and eTrade allow users to trade shares and ETFs. However, a significant distinction exists between Robinhood and eTrade when looking for alternative investment strategies. Robinhood has an innovative DNA meaning there are few, but sometimes groundbreaking, investments. Robinhood offers fractionate stocks. With fractionals investors can acquire the largest companies on the stock market and share the biggest companies. Robinhood also carries digital currency and is therefore a very popular brokerage in the world. eTrade provides clients with a broader range of investment options and services. If you are someone who loves trading mutual funds, eTrade gives you that opportunity. Robinhood doesn't offer mutual funds.
Account Types of eTrade and Robinhood
Robinhood offers three types of accounts such as Instant, Cash, Gold. When you sign up you enter their instant account level then you can transform that into a cash account or get upgraded to a gold account for better features.
On the other hand, eTrade has various account types such as Brokerage Account, Retirement Accounts, Managed Portfolios, Small Business Retirement, Investment Advice, Bank, etc.
Robinhood has a simple and straightforward process to start trading. And, eTrade is kind of complicated and offers various account types that may suit different purposes. Especially, there is a retirement account which is better for doing something for older people to keep making money and make life more secure.
Which account is best for you depends on your trading experience and your investment goals. You can talk to a financial advisor to find out which account is right for you, even if you're still confused after knowing the account types above.
Above all, Robinhood is for entry level traders where it is easy to start trading. eTrade offers a variety of account types. And, that suits the most for expert traders. You can determine what you need according to your trading experience.
eTrade vs Robinhood: Regulations
Both the brokers are well regulated. Top-tier financial regulators like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) oversee eTrade.
Similarly, Top-tier financial regulators such as the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are the regulatory bodies of Robinhood.
Read Our Comparison Between eToro vs Robinhood
eTrade vs Robinhood: Security & Trust
When it comes to online security, there is no comparison between Robinhood and eTrade. Robinhood is the clear winner.
One of the main reasons Robinhood is more secure than eTrade is that it doesn't require you to create an account or log in with a username and password. All you need is your mobile phone number to start trading. eTrade, on the other hand, requires you to create an account and login with a username and password.
Robinhood also encrypts all of your data using the latest security technologies. eTrade does not encrypt your data.
Another reason why Robinhood is more secure than eTrade is that it doesn't store your personal information or financial data on its servers. eTrade, on the other hand, stores your personal information and financial data on its servers.
Robinhood is also the only stock trading app that offers two-factor authentication. eTrade does not offer two-factor authentication.
Overall, Robinhood is the more secure option when it comes to stock trading.
eTrade vs Robinhood: Customer Support
Customer support is an important aspect of any business, especially when it comes to online financial services. In the matter of customer support, there are two main players in the industry: Robinhood and eTrade.
Cost: Robinhood is on the lead here. eTrade charges a fee for every phone call and chat, while Robinhood does not charge any fees.
This means that Robinhood is the more affordable option for people who need to contact customer support now and then.
Availability: Both companies are at the same level when it comes to customer support availability. They both offer customer support 24/7.
Speed: Robinhood is the clear winner. eTrade can take a long time to respond to customer support inquiries, while Robinhood responds quickly. However, eTrade is packed with a lot of features that makes it a better option over the speed for experts.
Quality: Both companies are equal. Each of them offers great customer support that is knowledgeable and helpful.
Finally, the ultimate result here shows Robinhood is the more affordable and faster option. But eTrade is the better quality option.
Conclusion
Thus, the conclusion is eTrade has some unique features that can help traders who already have some experience in trading and investing online. And the platform also allows to shift sectors for crypto or forex trading without any hassle.
On the other side of the river, Robinhood has been the best option for those who think the investment and stock creation online is complex with tons of scopes at the same time. However, it's a pretty linear platform that has good and free customer support to guide all the investors about online trades.
It's pretty clear that any of the two options we've compared can be the right choice depending on the users' experience level. So, what are you waiting for? Sign up on the platform that suits your preference most and makes money online!