Robinhood vs. Schwab Introduction
Two financial powerhouses who offer trading, investing, and more are Robinhood and Charles Schwab.
Before selecting one over the other, be sure to look over our research.
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
|
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 + ACAT rebate + satisfaction guarantee at Charles Schwab.
Robinhood:
3% deposit match and up to $200 FREE stock at Robinhood.
Category One: Investing Services
Schwab customers can choose between advisory and brokerage departments. The former unit comes in two flavors, robo and full-service, and typically charges an annual fee between 0.00% and 1.00%.
Self-directed accounts at Schwab have no annual fees of any kind and come with a large assortment of tradable products. These include options, fixed-income securities, mutual funds, ETFs, closed-end funds, futures, forex, and stocks. The last category, stocks, includes foreign and over-the-counter products.
Robinhood fails to provide many of the asset classes Schwab has. For instance, there are no bonds,
closed-end funds, forex, or mutual funds. But in their place, Robinhood adds cryptocurrencies,
which are missing at Schwab.
For retirement customers, Robinhood offers something called Portfolio Builder. This isn’t technically
an investment-advisory program because it provides only a point-in-time recommendation without ongoing
management. There is no charge for it, though. Like Schwab’s robo program, it recommends investing in a small selection of ETFs.
Winner: Schwab
Category Two: Banking Services
As we said at the outset, these two companies are “financial powerhouses.” They’re more than just brokerage
firms. Both have some really sweet cash-management tools with all kinds of perks. At Robinhood, a debit
card comes with round-ups that convert spare change into fractional ownership of stocks and cryptocurrencies.
The card can be used fee-free at roughly 90,000 Automated Teller Machines, although many countries are
off limits. Cash back is available on some brands. Robinhood’s cash account can be used to send paper
checks, although an actual checkbook is not available.
An actual checkbook is available with Schwab’s checking account, and there is no charge for it. Like
Robinhood’s cash account, there are no recurring account fees and no minimums. Schwab’s checking account
pays interest (0.05% APY annually) and has a debit card that can be used anywhere in the world.
Schwab goes another step forward with a savings account, credit cards, and mortgages, which help to
complete the personal finance experience. It is the only company in this competition with mobile check
deposit.
Winner: Schwab
Category Three: Mobile Apps
To manage both investing and cash products, both firms have mobile apps. Schwab has actually created
two. One is called thinkorswim, while the second we will simply call the regular app. The Schwab
software is has some good stock and options tools. For example, the trade ticket has some advanced order types, such as:
- Trailing stop
- Contingent on Price
- OTO (one triggers the other)
- OCO (one cancels the other)
Charts on thinkorswim can be shown in horizontal format, and there are a few technical studies. The
major downside is the lack of mutual-fund trading. This problem is solved with the regular app, which
also has audio and video news.
Robinhood has just one app. It does manage to pack in quite a few useful features. The trade ticket doesn’t quite have the same level of order types we saw at Schwab. There are stop and trailing orders. It’s also possible to set up a recurring investment for a security. Because Robinhood doesn’t permit shorting, there is no sell or sell short button on the entry side.
Options traders won’t find a lot of pre-installed strategies (as is the case at Schwab). But Robinhood’s software does have integrated P/L diagrams. Breakeven points and maximum profit/loss numbers are shown.
Winner: Schwab
Category Four: Computer Software
A larger interface and more tools will be found on both companies’ websites. This time, Robinhood has full-screen charting with technical studies that we didn’t find on its mobile app. The order ticket is the same, though, and so are the option tools, which include a strategy-builder tool. The watchlists that appear on the website sync with the mobile app.
The watchlists on Schwab’s site also sync with those found on its regular mobile app. Charting is on
a much higher level, thanks to thinkorswim. This is a web-based platform that can be launched from
the appropriate link under the Trade tab. There are all sorts of drawing gadgets, lots of indicators, and several graph styles.
An all-in-one trade ticket on Central can submit orders for stocks, ETFs, options, or futures. There are some advanced trade types here, such as contingent on volume and market on close. For options traders, order types include walk limit/credit and even.
Many more tools will be found on the website. These can be used to trade mutual funds and fixed-income
securities. And there’s a desktop program as well. Called thinkorswim, it has many powerful tools and
costs nothing to use.
Schwab is in the process of rolling out more software that will bring trading to an even higher level in the computer environment. These platforms will once again carry the thinkorswim moniker, and the software will be available in both desktop and browser formats with tons of powerful trading tools. Examples include full-screen charting, a backtesting gadget, advanced screeners, pro-level order types, and simulated trading.
Winner: Schwab
Category Five: Margin
Margin trading is possible at either broker-dealer in this rivalry. Robinhood's rate begins at 5% and ends at 3.95%. Robinhood’s software does not display margin details for specific securities.
Schwab’s software does. The maintenance requirement of a stock or ETF is available (look for the
‘margin requirements’ link at the top of the profile). Right now, Schwab charges margin interest on a
tiered schedule that begins at 12.075% and drops to 10.325% or even lower for really high balances.
The really big difference between these two here is in shorting. Because Robinhood doesn’t permit short positions, the use of margin is obviously limited.
Winner: Schwab
Category Six: Additional Services
Periodic Mutual Fund Investing: Schwab has it.
Extended Hours: Both firms have after-hours and pre-market trading in securities. Robinhood has
10 more minutes than Schwab. Futures trade 24/6, and cryptocurrencies are available nearly 24/7.
Robinhood and Schwab offer overnight trading in a good list of stocks and ETFs.
DRIP Service: Available at both brokerage houses free of charge.
Individual Retirement Accounts: An IRA can be opened at either firm. Robinhood has a 1% match, but Schwab has more IRA types.
Fractional Shares: Stocks, ETFs, and cryptocurrencies can be traded in whole dollars at Robinhood.
Schwab offers the service only for the S&P 500 stocks.
IPO Access: Initial Public Offerings are on tap at both firms.
Fully-paid Securities Lending Program: Ditto.
Winner: Robinhood
Our Recommendations
Frequent Stock Trading: Definitely Schwab with thinkorswim.
Retirement Planning & Long-Term Investing: Schwab.
Small Accounts: Schwab has a $5,000 minimum or higher for managed accounts, so they’re really not an option. Neither firm has any fees or minimums for self-directed customers. Because Robinhood has fractional-share trading in more securities, it would be the better choice.
Beginning Investors: A managed account with Schwab.
Mutual Fund Trading: Schwab.
Promotions
Robinhood:
3% deposit match and up to $200 FREE stock at Robinhood.
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Charles Schwab vs Robinhood: Which is Better?
Although Schwab is the clear overall winner, we do like Robinhood’s overnight and cryptocurrency trading.
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Updated on 9/10/2025.
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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