Robinhood vs. E*TRADE: Which Broker Is Right for You?
Review
Updated
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Comparing Robinhood vs. E*TRADE from Morgan Stanley involves contrasting one of the oldest brokers and one of the newest. Robinhood boasts four times as many customer accounts as E*TRADE, yet over 5 million investors trust E*TRADE as their online broker. Why are Robinhood and E*TRADE relied on by so many traders, and which is the best online broker for you? Read on for a head-to-head comparison of Robinhood vs. E*TRADE.
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| Rating |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
Commissions |
Commissions |
| Account Minimum |
Account Minimum |
Account Minimum |
| Learn More |
Both Robinhood and E*TRADE are low-fee brokers for investors who trade exclusively stocks and ETFs. Derivatives and crypto traders will find Robinhood's commission-free trading of special interest. Mutual fund investors will find E*TRADE's suite of more than 6,000 no-load, no-commission mutual funds appealing. In this round of Robinhood vs. E*TRADE, the victor depends on you as an investor.
Robinhood pioneered zero-commission trading, and has stuck to that model. Investors using Robinhood enjoy $0 commissions on all trades of stocks and ETFs. For that reason, Robinhood is consistently ranked as one of the best ETF brokers. Robinhood continues to push the envelope with $0 commissions on cryptocurrency and options trades. Combine that with no account maintenance fee, and you've got a very low cost broker.
Like many brokers, E*TRADE from Morgan Stanley now offers zero-commission stock, mutual fund, and ETF trading. However, investors are charged up to $0.65 per option contract, about the industry average. (Investors who make 30 or more stock, ETF, or options trades per quarter are charged $0.50 per contract.) E*TRADE offers over 6,400 no-load, no-commission mutual funds.
| Robinhood | E*TRADE | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 | $0 + up to $0.65 per contract |
| Crypto commissions | $0 | N/A |
| Mutual fund commissions | N/A | $0 (over 6,000 no-load, no-commission) |
| Account transfer fee | $100 | $75 |
| Account maintenance fee | $0, or $5 monthly for Robinhood Gold | $0 |
Like most brokers, both Robinhood and E*TRADE help customers trade stocks and ETFs. However, if you seek alternative investment options, there is a distinct divide in the Robinhood vs. E*TRADE comparison. Robinhood's innovative DNA means that it has few, but often groundbreaking investment options. Robinhood offers fractional shares. With fractional shares, those with less to invest can own some of the biggest names in the market. Additionally, Robinhood offers cryptocurrencies, making it one of the few brokers to do so.
E*TRADE offers a broader range of investments to its clients. Beyond stocks and ETFs, investors can purchase over 6,500 mutual funds, including over 6,400 no-load funds. That is part of why E*TRADE is consistently among the best brokers for mutual funds. Additionally, E*TRADE customers can buy CDs and bonds, which may be an important part of a well-diversified portfolio. For traders with suitable risk tolerance, E*TRADE offers options and futures.
The suitability of Robinhood vs. E*TRADE depends in large part on the investments you want to hold. For crypto, options, and fractional share traders, Robinhood may be a good bet. For investors seeking mutual funds, CDs, bonds, and futures, E*TRADE may be the clear choice. Investors buying mostly stocks and ETFs may find both Robinhood and E*TRADE attractive.
| Robinhood | E*TRADE | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | Yes | No |
| Options | Yes | Yes |
| Mutual funds | No | Over 6,500 Total (over 6,400 no-load) |
| CDs | No | Yes |
| Bonds | No | Yes |
| Futures | No | Yes |
| Crypto | Yes | No |
| Currencies | No | No |
$0 for stocks,¹ $0 for options contracts⁴
$0
This brokerage is a clear standout for its well-rated mobile app and 1% IRA match.⁸ It also has unique investment offerings like IPOs, options,⁴ and fractional shares.³
On SoFi Invest's Secure Website.
$0 for stocks, ETFs, and options
$0
Robinhood is a simple, low-cost brokerage with a few rare perks. It matches retirement deposits like an employer, the interface is gorgeous, and it's extremely affordable. No matter what or how you trade, Robinhood fees tend to match or beat the competition. It's worth a look.
On Robinhood's Secure Website.
Commission-free; other fees apply
$0
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
On E*TRADE's Secure Website.
For many investors, a taxable brokerage account may not be the most efficient place to invest in and store assets. These brokers differ a lot here. E*TRADE offers a very wide range of account types beyond the traditional taxable individual account. They include traditional and Roth IRAs, SEP and SIMPLE IRAs, beneficiary IRAs, and IRAs for minors. Additionally, customers can rollover a 401(k) onto the E*TRADE platform. E*TRADE is also considered one of the best robo-advisors, with a suite of managed portfolios. Customers seeking to keep all of their assets under one roof may find E*TRADE's checking, savings, and credit card accounts of special interest.
Robinhood offers users a taxable brokerage account, a traditional IRA, and a Roth IRA. Users can open a margin account, but only Robinhood Gold subscribers get the best rate.
Robinhood's streamlined approach has launched it into the spotlight. But E*TRADE has much more to offer investors seeking retirement, robo-advisor services, banking, or other accounts.
| Robinhood | E*TRADE | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | No | Yes |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | No | Yes, SEP IRA, IRA for Minors, Beneficiary IRA, SIMPLE IRA, Rollover IRA |
| Custodial | No | Yes |
| Checking | No, but offers a spending account | Yes |
| Savings | No, but offers brokerage cash sweeps | Yes |
| Credit card | No | Yes |
Investors evaluating Robinhood vs. E*TRADE will find key differences in mobile apps and trading platforms. For traders who value a sleek mobile app without bells and whistles, Robinhood may be a strong choice. E*TRADE offers a complex desktop suite best for active traders and options traders.
Robinhood was one of the pioneers of mobile trading, and still ranks as one of the best stock trading apps. A no-frills platform, has made trading controversially easy. With little more than portfolio information and transaction tabs, the app is simple and visually appealing. 's desktop version is very similar to the mobile app.
E*TRADE offers a simple, easy-to-navigate mobile and desktop platform. With market data, commentary, research, and screeners, the basic platform is well suited to active traders. The Power E*TRADE platform sports a sleek dashboard and impressive tools for derivatives traders.
Comparing Robinhood vs. E*TRADE depends on the investing style and priorities of individual investors. Both brokers offer low fees and a user-friendly trading platform. However, each broker better suits a different style of customer.
Robinhood is an industry pioneer, offering a highly accessible mobile application and zero-commission trading. It has continued to push the boundaries of what a broker is and does by offering cryptocurrency as an investment option. Derivatives traders should note its uncommon $0 options contract fee. Investors who seek alternative investments and don't need the bells and whistles offered by many brokers should consider Robinhood.
E*TRADE is an established broker, as is evident in its wide range of investment and account offerings. Investors seeking more than a taxable brokerage account and basic IRAs may find value in E*TRADE's many retirement, robo-advisor, and banking accounts. Readers who invest in mutual funds, CDs, bonds, and futures will want to consider that these investments are available to E*TRADE customers. Add extensive market research and a powerful options dashboard, and E*TRADE may be the best broker for you.
On Robinhood's Secure Website.
2025 Award Winner
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Commission-free; other fees apply
$0
Open and fund a brokerage account and get up to $1,000. Terms apply.
On E*TRADE's Secure Website.
2025 Award Winner
A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 for stocks, ETFs, and options
$0
On Robinhood's Secure Website.
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
It depends on what you're looking for. Robinhood offers cheaper options trading and a beautiful user experience. But it's not as fully featured. For example, only E*TRADE offers a robo-advisor.
Yes. It offers a wide variety of zero-commission ETFs and mutual funds. Its stock trading platform is very beginner friendly.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
E*TRADE services are available just to U.S. residents.
E*TRADE services are available just to U.S. residents.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotional Disclosures
