Robinhood vs. Schwab
Main Points:
• Robinhood and Schwab both provide a wide range of investment services.
• In addition to brokerage accounts, both companies also offer automated advisory accounts.
• Robinhood supports cryptocurrency trading, event contracts, and futures, while Schwab offers mutual funds, futures, forex, and more.
Before opening your next investment account, take some time to review what Charles Schwab and Robinhood bring to the table.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Robinhood
|
$0
|
na
|
$0 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Charles Schwab
|
|
|
|
|
|
|
|
Robinhood
|
|
|
|
|
|
|
Charles Schwab:
$0 commissions + ACAT fee rebates + a satisfaction guarantee with Charles Schwab.
Robinhood:
Get a FREE stock worth up to $200 + a 1% transfer match + a 2% IRA match when you sign up using a Robinhood referral link!
Brokerage
Both brokerages in this comparison provide self-directed brokerage accounts. Inside these DIY accounts, traders can buy and sell several asset classes, including:
- Futures
- Stocks
- Options
- ETFs
Schwab customers can also trade mutual funds, international stocks, closed-end funds, forex, and bonds. Robinhood users, on the other hand, have access to event contracts and cryptocurrencies.
Because Schwab operates a large network of branch offices staffed with financial advisors, investors can also open a full-service brokerage account that includes professional assistance. Robinhood does not offer this type of account.
A brokerage account—whether self-directed or full service—must be registered with a particular tax status. At Robinhood, investors can open individual, joint, custodial, or retirement accounts. Schwab offers those account types plus additional ones, such as trust accounts, education accounts, and solo 401(k) plans.
Winner: Schwab
Investment Advice
If you’re unsure about choosing investments on your own, both companies offer advisory services. At Schwab, advisory accounts may be managed either by human advisors or by automated software. The firm’s robo-advisor service has a $5,000 minimum and no advisory fee, although indirect costs still apply. Traditional advisory accounts charge an annual fee but include more personalized guidance.
Robinhood offers only automated advisory accounts; it does not provide traditional human-managed advisory services. In a Strategies account, an algorithm selects investments for a management fee of 0.25% per year. The minimum investment is $50. Accounts under $500 are invested in ETFs, while larger accounts may hold a mix of ETFs and individual stocks.
Winner: Schwab
Cash Management
These two financial companies offer more than just investing services.
Robinhood clients can use banking features that include checking, savings, a debit card, direct deposit, mobile check deposit, and other cash-management tools. Some benefits require an annual Robinhood Gold subscription and at least $1,000 in monthly direct deposits. ATM fees and other charges depend on the customer’s benefit tier.
Schwab does not offer the same type of Robinhood-style banking membership, but it provides a broader set of traditional banking tools. These include a debit card, checking and savings accounts, credit cards, mortgage services, Zelle, and more. Schwab’s debit card also reimburses eligible ATM fees worldwide.
Winner: Schwab
Mobile Apps
Both firms allow users to manage investing and cash-management accounts through mobile apps. Schwab’s mobile app includes a check-deposit feature, and watchlists automatically sync with the website. Zelle transfers can be completed within the app for eligible Schwab Bank Investor Checking customers, and users can access a large library of educational materials. You can even download free stock reports for companies you follow. Don’t forget about thinkorswim, Schwab’s advanced mobile platform designed for active traders.
Robinhood offers mobile tools for investing, trading, and banking. The investing app includes several
useful tools. For example, charts support multiple plot styles, and the order ticket includes advanced
order types such as trailing orders. Robinhood Banking also supports mobile check deposit.
Winner: Schwab
Websites
Robinhood customers can place trades either on the company’s main website or through its browser-based platform called Legend. Both interfaces use the same trade ticket, although recurring orders are available only on the website. Legend provides stronger charting tools, which may appeal to technical traders.
Schwab also offers both a website and a browser platform, the latter being the thinkorswim web platform. The trade ticket on thinkorswim is significantly more advanced than what Robinhood offers, including OCO and contingent orders. Charting tools are also strong, and the platform includes Schwab Network, a live video news service.
Winner: Schwab
Desktop Software
For advanced trading, Schwab customers have access to a dedicated desktop platform. This software continues under the thinkorswim brand and includes many tools not available on the web platform. Examples include a backtesting module and thinkScript, a built-in coding language. Technical traders gain access to 400+ technical studies, while CNBC streams live inside the platform. Forex trading panels are also included.
Winner: Schwab
Margin Trading
Traders at both companies can set up brokerage accounts as either cash or margin accounts. With margin enabled, investors can borrow money to buy securities, trade option spreads, or open short positions.
Schwab’s margin rate schedule begins around 12.075% and declines to 10.325%, with negotiable rates for balances above $500,000. Robinhood offers a more competitive margin schedule, starting at 5.25% and dropping to 4.2%. Robinhood Gold members also receive the first $1,000 of margin borrowing without interest charges.
Winner: Robinhood
Extra Features
IRAs: Both companies offer Individual Retirement Accounts. Neither broker charges an IRA closeout fee. Schwab allows annuities inside an IRA, while Robinhood does not.
Fractional Shares: Both firms support fractional-share trading for stocks. Schwab Stock Slices are for stocks and ETFs trading on the U.S. exchanges and require a $1 minimum per transaction. Schwab does not allow
whole-dollar investing in ETFs, while Robinhood does.
IPO Lineups: Each brokerage offers access to some IPO opportunities before they start trading on the secondary market, although availability and allocations are not guaranteed.
DRIP Service: Dividend reinvestment plans are available at both brokers.
Recurring Mutual Fund Investing: Schwab offers automatic purchases and sales of mutual funds. Robinhood allows recurring investments in stocks, ETFs, and cryptocurrencies.
Fully-Paid Stock Lending: Available at both brokerages.
Extended-Hours Trading: Both companies support extended-hours trading sessions, including overnight trading. Schwab offers 24/5 trading in all S&P 500, NASDAQ 100, and Dow 30 stocks, plus more than 600 ETFs, on thinkorswim.
Winner: Pretty even overall
Recommendations
Frequent Stock Trading: We recommend thinkorswim in desktop mode.
Small Accounts: Schwab requires $5,000 to open a robo account, while Robinhood requires only $50. Neither firm has a minimum for a self-directed brokerage account, although Robinhood has a slight advantage thanks to fractional-share investing in ETFs.
Mutual Funds: Schwab investors can choose from thousands of mutual funds. Robinhood offers none, making Schwab the clear choice. Schwab’s mutual fund hub on its website is especially useful.
Beginners: A managed account at either broker is a good starting point. We lean toward Schwab because of its branch locations and access to human financial advisors.
Long-Term Investors & Retirement Savers: Schwab is the stronger option.
Promotions
Robinhood:
Get a FREE stock worth up to $200 + a 1% transfer match + a 2% IRA match when you sign up using a Robinhood referral link!
Charles Schwab:
$0 commissions + ACAT fee rebates + a satisfaction guarantee with Charles Schwab.
Charles Schwab vs Robinhood: Final Result
Robinhood stands out for cryptocurrency trading, event contracts, smaller managed accounts, fractional-share ETF investing, and margin borrowing. In most other areas, Schwab has the advantage.
|
|
Updated on 8/20/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
|