Vanguard vs. Robinhood: Which Broker Is Right for You?
Review
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Investors of all stripes are likely to consider Vanguard vs. Robinhood, two of the best online brokers. Vanguard is one of the older brokers in the industry, and its long-term success lies in its broad mutual fund offering to passive investors. Robinhood is an upstart, famous for zero-dollar commission fees and a one-of-a-kind user experience. Which broker is best for you? Read on, where we'll break it down in our review of Vanguard vs. Robinhood.
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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 |
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Account Minimum |
Account Minimum |
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Like many brokers, Vanguard offers zero-commission trading for online stock, ETF, and Vanguard mutual fund trades. In terms of options contracts, Vanguard's $1 commissions are much higher than what we typically see for competitors, but it's worth noting that accounts with over $1 million invested with Vanguard get a certain number of options trades for free.
Vanguard's mutual fund commissions are lower than what we usually see with other brokers. There are no commissions for Vanguard's own mutual funds, as well as many other no-transaction-fee (NTF) funds, and commissions are only $20 for funds on the transaction-fee (TF) list. And just like with options, Vanguard gives high-balance accounts a certain number of mutual fund trades for free. Vanguard charges a $25 account service fee annually, but it's easy enough to avoid by signing up for e-delivery of account communications.
Since Robinhood announced $0 commissions on stocks and ETFs in 2013, it has been a race to the bottom for nearly every major broker. Today, Robinhood continues to forge ahead by offering $0 commissions on options and cryptocurrencies as well. With no account maintenance fee, Robinhood offers a low-cost broker experience for its customers. However, transferring an account from Robinhood will cost you $100, which is typical among brokers.
READ MORE: Best Stock Brokers
For investors interested in stocks and ETFs only, there isn't much difference between Vanguard vs. Robinhood. But mutual fund investors may favor Vanguard. Options and cryptocurrency traders will look to Robinhood for the best commissions.
| Vanguard | Robinhood | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 + $1 per contract (for account values <$1M) | $0 |
| Crypto commissions | N/A | $0 |
| Mutual fund commissions | $0 for Vanguard mutual funds and no transaction fee mutual funds, $0-$25 for others | N/A |
| Account transfer fee | $0 | $100 |
| Account maintenance fee | $25, but waived if account holder chooses e-delivery of statements. | $0 or $5 monthly for Robinhood Gold |
Vanguard offers one of the largest mutual fund families we've found, and it's frequently ranked as one of the best brokers for mutual funds. Currently, Vanguard boasts 422 funds with a variety of management styles, asset classes, and strategies. Vanguard doesn't require a minimum dollar amount to open an account, but many mutual funds have investment minimums Most investment minimums are $3,000 (there are a few with $1,000 minimums), but can exceed $50,000 for some mutual funds. Vanguard also offers investors a variety of investments including stocks and ETFs, options, CDs, and bonds.
Robinhood offers users stocks and ETFs like other brokers, and it allows them to be traded as fractional shares. With fractional shares, those with less to invest can own some of the biggest names. Like Vanguard and many other brokers, Robinhood allows users to trade options. Unlike other brokers, Robinhood lets users trade cryptocurrencies.
READ MORE: Best Options Trading Platforms
When it comes to investments available to trade, there are stark differences between Vanguard vs. Robinhood. Both brokers offer stocks, ETFs, and options. However, Vanguard offers more traditional investments including mutual funds, CDs, and bonds. Robinhood offers the fractional shares of many stocks, and also offers cryptocurrencies. Vanguard offers fractional shares, but only for its own ETFs, which allow investments of as little as $1. The type of investments offered is one of the larger differences between Vanguard and Robinhood.
| Vanguard | Robinhood | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | ETFs only | Yes |
| Options | Yes | Yes |
| Mutual funds | Yes | No |
| CDs | Yes | No |
| Bonds | Yes | No |
| Futures | No | No |
| Crypto | No | Yes |
| Currencies | No | No |
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 |
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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. |
Vanguard offers a wide range of investment account types beyond taxable accounts. Vanguard customers can open joint accounts, retirement savings accounts, and custodial accounts. Among its retirement accounts, Vanguard offers traditional and Roth IRAs, as well as SEP and SIMPLE IRAs. Vanguard also offers Vanguard Digital Advisor®, a robo-advisor, to rebalance accounts automatically. Additionally, users can open a margin account to invest borrowed money.
READ MORE: Best Robo-Advisors
Robinhood offers users only a few types of accounts. Investors on Robinhood can trade in standard (taxable) brokerage accounts, as well as in traditional and Roth IRAs. For the cost of $5 monthly, users can unlock Robinhood Gold, which gives certain benefits such as lower margin rates, a high interest rate on your uninvested cash, and superior trading tools.
READ MORE: Best IRA Accounts
For investors seeking only a taxable trading account or basic IRA, Robinhood is a good choice. An investor with any other type of retirement account -- or the need for a custodial account -- will value the variety of accounts offered by Vanguard. Vanguard offers many account types while Robinhood offers only a few.
| Vanguard | Robinhood | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes, Vanguard Digital Advisor® | No |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | Spousal, SEP IRA, SIMPLE IRA | No |
| Custodial | 529, UGMA/UTMA | No |
| Checking | No | No, but offers a spending account |
| Savings | No, but offers a cash management account | No, but offers brokerage cash sweeps |
| Credit card | No | No |
Vanguard's trading platform lacks the fancy gadgets offered by many brokerage firms. However, it provides the necessary tools to its target user -- the passive investor. The Vanguard platform includes all of the features typically offered by a broker:
The Vanguard mobile app operates similarly, and is highly rated on the App Store.
Robinhood is one of our most highly rated stock trading apps, and for good reason. With a streamlined approach, the Robinhood app doesn't outshine its competitors in terms of features. However, the visual appeal and ease of trading offered by the app have yet to be replicated by competitors we've seen. Robinhood's desktop platform is modeled after the mobile app and provides similar features, but without as much pizzazz.
Both brokers offer a highly rated interface. However, Vanguard's platform is built for the passive investor while Robinhood's platform is designed for active traders. Interested investors can try out both and then stick to their personal preference.
LEARN MORE: Best Online Stock Brokers for Beginners
Vanguard is a strong choice for passive, long-term investors seeking more than the typical taxable account or IRA. Plus, Vanguard offers a suite of highly rated mutual funds and may be the right broker for investors seeking to buy the Vanguard family of funds without paying commissions. Each of these funds can be held in a tax-advantaged account, potentially saving investors money. As mentioned above, investors should be aware of investment minimums required by some Vanguard funds.
Robinhood offers $0 commissions on trades of stocks, ETFs, cryptocurrencies, and options but doesn't offer mutual funds or certain other types of investments. For crypto and derivatives traders, removing broker commissions from the equation can add up. Investors with smaller portfolios can take note of Robinhood's fractional shares on many stocks and no account minimums. For crypto, derivative, and fractional share investors, Robinhood is a strong choice, and the platform certainly offers more features for active traders than Robinhood does
In the case of Vanguard vs. Robinhood, finding the best broker for you may not be straightforward, but both are good options for many investors. When choosing a broker, fees, minimums, investments offered, and tax efficiency matter. Think about the factors that are most important for your investing needs, and see which one feels like a better fit for you.
On Robinhood'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.
Generally speaking, Vanguard is the better choice for long-term investors, while Robinhood is designed to provide resources traders need. Having said that, there are a lot of variables to consider, such as what you want to invest in (for example, Robinhood doesn't offer mutual funds and Vanguard doesn't offer cryptocurrency), as well as what type of account you want to open.
Robinhood is a solid all-around broker, especially for newer investors who want to get started in stock investing, but there are some drawbacks. For one thing, it doesn't offer the ability to invest in mutual funds, CDs, or bonds. Plus, it doesn't have as many educational resources as many other brokerages, and only offers a few different account types.
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.
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.
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
