Charles Schwab vs. Robinhood: 2025 Comparison
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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 took on the popular thinkorswim trading platform as part of its acquisition of TD Ameritrade.
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% for Robinhood Gold members). 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. It also launched a more robust active trading platform in 2024.
Read more about each broker below.
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, transfer, closing, inactivity) | Annual fee: $0 Inactivity fee: $0 Outgoing transfer fee (partial or full): $50 |
Interest rate on uninvested cash | 0.45% |
Number of no-transaction-fee mutual funds | More than 8,000 |
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 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. |
Account fees (annual, transfer, closing, inactivity) | No annual or inactivity fees. $100 ACAT outgoing transfer fee. Robinhood Gold costs $5 a month. Matching funds in IRAs may be taken back if money is withdrawn in less than five years. Instant withdrawals cost a minimum of $2 and a maximum of 1.75% of the amount withdrawn. |
Interest rate on uninvested cash | 0.01% for free accounts, 4% for Gold accounts (as of Jan. 8, 2025). |
Tradable securities | Stocks, ETFs, Options, Cryptocurrency, American Depositary Receipts for over 650 global companies, Fractional shares. Bonds only available in the form of bond ETFs. |
Number of no-transaction-fee mutual funds | Not available. |
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. |
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. |
» Read our full review of Robinhood
NerdWallet rating 4.8 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 4.6 /5 |
Fees $0 per online equity trade | Fees $0.005 per share; as low as $0.0005 with volume discounts | Fees $0 |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
Promotion None no promotion available at this time | Promotion Exclusive! U.S. residents who open a new IBKR Pro account will receive a 0.25% rate reduction on margin loans. Terms apply. | Promotion Earn up to $10,000 when you transfer your investment portfolio to Public. |
Want to compare more options? View our full list of the best brokers for stock trading.
How do we review brokers?
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We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’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.
