Robinhood vs. Schwab Introduction
Robinhood and Charles Schwab are both major companies that offer trading, investing, and more.
Before you pick one, check out our research below.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
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$0.65 per contract
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$0
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$0
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Robinhood
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$0
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na
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$0 per contract
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$0
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$0
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Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Charles Schwab
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Robinhood
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Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Robinhood: 3% deposit match and up to $200 FREE stock at Robinhood.
Category One: Investing Services
Schwab customers can pick either advisory or brokerage accounts. The advisory accounts include both robo and full-service, and they usually charge an annual fee between 0.00% and 1.00%.
Self-directed accounts at Schwab do not have any annual fees and come with a large choice of investments. These include options, bonds, mutual funds, ETFs, closed-end funds, futures, forex, and stocks. Stocks include both foreign and over-the-counter stocks.
Robinhood does not have as many types of investments as Schwab. For example, there are no bonds, closed-end funds, forex, or mutual funds. But Robinhood does let you trade cryptocurrencies, which Schwab does not offer.
For retirement, Robinhood has something called Portfolio Builder. This is not a real advisory service because it only gives a one-time suggestion and does not manage the account. It is free to use. Like Schwab’s robo service, it suggests investing in a small group of ETFs.
Winner: Schwab
Category Two: Banking Services
As we said earlier, both companies are more than just brokerages. Both have strong cash-management features with lots of benefits. At Robinhood, a debit card comes with round-ups, which turn spare change into fractional shares of stocks or cryptocurrencies.
You can use the card at about 90,000 ATMs with no fees, but many countries are not covered. Some brands also offer cash back. You can use Robinhood’s cash account to send paper checks, but there is no actual checkbook.
Schwab offers a real checkbook with its checking account, and there is no fee for it. Like Robinhood’s cash account, there are no ongoing account fees or minimums. Schwab’s checking account pays interest (0.45% APY yearly) and comes with a debit card you can use anywhere in the world.
Schwab also offers a savings account, credit cards, and mortgages, making it a complete personal finance provider. It is the only one here that has mobile check deposit.
Winner: Schwab
Category Three: Mobile Apps
Both companies have mobile apps for managing investing and cash. Schwab actually has two apps: one is called thinkorswim, and the other is the regular app. The Schwab apps have good tools for stocks and options. For example, the order form has these advanced order types:
- Trailing stop
- Contingent on Price
- OTO (one triggers the other)
- OCO (one cancels the other)
On thinkorswim, you can view charts sideways and add some technical studies. The main downside is you cannot trade mutual funds there. The regular Schwab app fixes this, and it also gives you audio and video news.
Robinhood has only one app, but it includes many good features. Its order form does not have as many advanced order types as Schwab. There are stop and trailing orders. You can also set up automatic recurring investments. Robinhood does not allow short selling, so you will not see a sell or sell short button.
For options trading, Robinhood does not offer as many built-in strategies as Schwab. But it does show profit/loss diagrams, breakeven points, and the most you can make or lose.
Winner: Schwab
Category Four: Computer Software
Both companies offer more features and a bigger interface on their websites. Robinhood now has full-screen charting with technical studies, which are not on the mobile app. The order ticket is the same as before, as are the option tools, including a strategy-builder. Watchlists on the website sync with those on the mobile app.
Schwab’s website watchlists also sync with its regular mobile app. Charting is much more advanced, thanks to thinkorswim. This is a web-based platform you can open from the Trade tab. There are many drawing tools, lots of indicators, and different chart styles.
The Central all-in-one trade ticket can place orders for stocks, ETFs, options, or futures. Some advanced order types are available, like contingent on volume and market on close. For options traders, there are order types like walk limit/credit and even.
You’ll find even more tools on Schwab’s website. You can use these to trade mutual funds and fixed-income products. Schwab also offers a desktop program called thinkorswim. It is free to use and comes with many strong features.
Schwab is adding even more software that will raise the level of trading on computers. These new platforms will also use the thinkorswim name and will be available as both desktop and browser versions with lots of advanced trading tools. Some features will include full-screen charting, a backtesting tool, advanced screeners, professional order types, and simulated trading.
Winner: Schwab
Category Five: Margin
Both companies allow margin trading. Robinhood charges a flat 5.75% for borrowing money. Robinhood’s software does not show margin details for specific securities.
Schwab’s software does show this information. You can find the maintenance requirement for a stock or ETF under the 'margin requirements' link at the top of its profile. Schwab charges interest on margin with a tiered schedule that starts at 12.575% and drops to 10.825% or lower for very high balances.
The big difference here is short selling. Robinhood does not allow short selling, so margin use is limited.
Winner: Schwab
Category Six: Additional Services
Periodic Mutual Fund Investing: Schwab offers this.
Extended Hours: Both firms allow pre-market and after-hours trading. Robinhood has 10 more minutes of extended hours than Schwab. Futures can be traded almost all week (24/6), and cryptocurrencies can be traded nearly all the time. Robinhood and Schwab both let you trade stocks and ETFs overnight.
DRIP Service: Both companies let you reinvest dividends for free.
Individual Retirement Accounts: You can open an IRA at either company. Robinhood offers a 1% match, while Schwab has more types of IRAs.
Fractional Shares: At Robinhood, you can buy stocks, ETFs, and cryptocurrencies in dollar amounts. Schwab only offers this for S&P 500 stocks.
IPO Access: Both companies offer access to initial public offerings.
Fully-paid Securities Lending Program: Both have this feature.
Winner: Robinhood
Our Recommendations
Frequent Stock Trading: Schwab with thinkorswim is the best.
Retirement Planning & Long-Term Investing: Schwab is recommended.
Small Accounts: Schwab has a $5,000 or higher minimum for managed accounts, so it may not be
an option for small accounts. Neither company has fees or minimums for self-directed trading. Robinhood is better for small accounts because you can buy fractional shares of more investments.
Beginning Investors: We suggest a managed account with Schwab.
Mutual Fund Trading: Schwab is the only choice.
Promotions
Robinhood: 3% deposit match and up to $200 FREE stock at Robinhood.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Charles Schwab vs Robinhood: Who is Better?
Schwab is the overall winner, but Robinhood stands out for overnight and cryptocurrency trading.
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Updated on 5/30/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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