Robinhood vs. E-Trade Comparison
Robinhood vs. E-Trade Comparison
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Retail investing is not just a hobby. As some amateur investors reap huge gains in the 2021 GME frenzy, more are looking to get in on the action. Trading stocks, exchange-traded funds and cryptocurrencies is an exciting pastime and a legitimate way to increase your wealth thanks to the accessibility of digital trading platforms.

The explosion of digital investment opportunities in recent years has diminished the need to hire a broker. Investors have many options when it comes to choosing a digital trading platform. But which retail investing platform offers the easiest to use with the lowest fees: Robinhood or E-Trade?

Robinhood vs E-Trade: The Basics

Robinhood is a browser- and app-based brokerage platform that offers commission-free trading and “digestible financial news” for amateur investors who want to learn more about the ins and outs of the market. Robinhood’s mission is to democratize trading in the marketplace, just as the company’s legendary namesake company levels the financial playing field for the poor. Robinhood’s user-centric mission brings new investors to the game without the fees or stress of premium brokerage options.

E-Trade is known for its early entry into online trading. In fact, E-Trade hosted the first Internet stock trading in the 1980s. Since then, it has continued to offer innovative and easy ways to trade online, and in 2020 it was acquired by Morgan Stanley and renamed Morgan Stanley’s E*TRADE. When it comes to digital trading platforms, investors expect the legitimacy and durability of electronic trading.

The Best Features of Robinhood and E-Trade

Understanding how Robinhood and E-Trade features compare will help investors choose the right app for them.

Freebies

When it comes to freebies, Robinhood beats E-Trade. The platform is known for its commission-free trading, but the feature that attracts customers is the free stake or part of the stake offered when signing up. Combined with the investment rewards you can get with the upcoming Robinhood Cash Card, there are two ways for new investors to get free stock.

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Users who meet the eligibility criteria can use a new stock lending feature that pays investors a monthly fee to lend their shares to financial institutions and other market participants.

Robinhood allows newbies to learn stock trading while taking their first steps. Financial content and “snacks” podcasts provide valuable information in a concise format to help users become familiar with the market.

E-Trade also offers commission-free trading on stocks, options and ETFs. You’ll also find extensive basic and advanced investing information, in-depth insights and information to help you plan your retirement.

Investment options

Robinhood can’t compete with the wide range of investment options available on E-Trade. In addition to commission-free stock and ETF trading, you can trade mutual funds, options, bonds, and futures. Robotic investing is available through E-Trade’s core portfolio plan, and you can also invest in managed portfolios or IRAs.

Robinhood’s bank-like product is a cash management account with a debit card that earns you a weekly investment bonus when you shop with the card. In addition to using the card at over 90,000 free ATMs, you can also use the card to send checks. This map is not yet available. However, you can put yourself on a waitlist.

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Cryptocurrency

When it comes to investing in cryptocurrencies, Robinhood is the clear winner. You can buy and sell 13 different currencies including Bitcoin, Ethereum, Dogecoin, Litecoin, Ethereum Classic, Bitcoin Cash, Polygon and Solana – commission free. The coins you buy are kept in “cold storage” – that is, they are less susceptible to hacking and other threats than an internet-connected wallet.

E-Trade’s cryptocurrency products are limited to securities that track cryptocurrencies, own cryptocurrency assets, or serve the cryptocurrency industry. They allow you to access cryptocurrencies without directly owning the coins.

Fee overview

In terms of fees, it’s a shuffle between Robinhood and E-Trade.

Robinhood’s reputation lies in its commission-free stock trading. However, the Gold subscription, which includes benefits like larger instant deposits, margin investing, and advanced market data, costs $5 per month. Robinhood also charges for some optional services, such as paper statements and wire transfer overnight check delivery.

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E-Trade wants its users to “focus on your future, not expenses.” Its fees are very clear, stating that it offers $0 commission trades, $0.50 to $0.65 options contracts, $1.50 futures contracts, and $1 bond trades.

Electronic trading investors researching deeply traded options may incur fees associated with those options. These include block trades, OTC trades and foreign exchange trades.

Mobile app: trade anytime, anywhere

In today’s hobbyist atmosphere of stock trading, many people like to flip through their portfolios and make adjustments at lunchtime. You need simple and responsive trading applications to get work done anytime, anywhere. Both Robinhood and E-Trade offer app versions of their platforms to allow users to easily trade anywhere.

Robinhood App Experience

The Robinhood app has built-in trading tools, so users can access all financial instruments from their mobile device. These trading tools include news articles, real-time market information and analyst ratings. Investors can also use smart notification settings to stay informed about their buy/sell thresholds and other events in the app.

Trading options in Robinhood include typical cash management skills such as direct deposit and digital verification.

Users rate the Robinhood app 3.8 out of 5 stars in the Google Play Store and 4.2 out of 5 stars in the App Store.

Features of e-Trade App

E-Trade offers two applications: the basic E-Trade investing and savings platform and the advanced trading application Power E-Trade. The e-commerce application includes functionality for buying and selling, banking, and educational content. Designed for seasoned investors, Power E-Trade offers advanced charting and futures and options trading.

Users rated the E-Trade app 4.1 out of 5 stars on the Google Play Store and 4.6 out of 5 stars on the App Store.

Robinhood vs E-Trade: Which App Is Best for Consumers?

For the average beginner, Robinhood offers a simplified process and the ability to trade cryptocurrencies for free. Its educational features allow users to immerse themselves in enthusiasm while still gaining wisdom. But its simplicity and low buy-in options make it attractive to those trying to trade as a pastime.

Given the wide variety of tools and accounts available, investing in E-Trade makes the most sense for those who are serious about saving, retirement planning, and investing in a variety of asset classes. Compared to Robinhood’s hobby style, E-Trade has all the tools needed for more sophisticated investment strategies.

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