Investing in Vanguard and Fidelity Mutual Funds on Robinhood
Our readers are sometimes asking us the following questions:
- Are Vanguard (Fidelity) mutual funds and ETFs offered on Robinhood?
- Can I buy and sell Vanguard (Fidelity) funds (index, bond, stock, and target retirement funds) and ETFs through Robinhood?
- What is the cost to invest in Vanguard (Fidelity) mutual funds and ETFs on Robinhood account?
In this article we will provide answers to all these questions.
Funds on Robinhood
Robinhood does not offer mutual funds. At all. The broker only offers investing in stocks, ETF's, options, and
a few cryptocurrencies. To invest in Fidelity and Vanguard mutual funds we recommend
Ally Invest.
Investors who are interested in ETF's can buy and sell all exchange-traded funds at Robinhood
without paying a commission. Many of these exchange-traded funds have expense ratios below 1.00%.
All Vanguard and Fidelity exchange traded funds do appear on Robinhood's list of available ETF's.
Open Ally Invest Account
Open Ally Invest Account
TD Ameritrade vs Robinhood Overview
No two brokers could be more different from each other than TD Ameritrade and Robinhood. With very
different priorities and offerings, they certainly have different strengths and weaknesses. Let's
see how the two firms compare to each other and which is better - Robinhood or TD Ameritrade?
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
TD Ameritrade
|
|
|
|
|
|
|
|
Robinhood
|
|
|
|
|
|
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Commissions and Fees
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
TD Ameritrade
|
$0
|
$49.99
|
$0.65 per contract
|
$0
|
$0
|
|
Robinhood
|
$0
|
na
|
$0 per contract
|
$0
|
na
|
TD Ameritrade: $0 commissions + transfer fee reimbursement.
Robinhood: Get one free $2-$7 value stock when you open an account.
Research & Educational Tools
Very good educational and research tools can be found on TD Ameritrade's website. Screeners for stocks, ETF's, and mutual funds make searching for securities much easier. Analyst reports for stocks are available to clients at no cost. These come from several sources, including Credit Suisse, TheStreet.com, and MarketEdge. Traders will also find instructional videos on a wide variety of financial topics. Remarkably, Robinhood does not have any security research tools or educational resources.
TD Ameritrade easily wins the first category.
The Cost of Trading
It's hard to beat Robinhood in the area of fees and commissions, because the firm offers the lowest
price possible for stock and ETF transactions—an amazing $0. It does, however, charge $5 for paper
statements and $2 for hard copy trade confirmations. The broker also passes regulatory and exchange
fees onto traders. Using a living, breathing agent to execute a trade over the phone is just $10.
TD Ameritrade is also charging ultra-low $0 for ETF and stock trades. Paper statements are $2 for
accounts below $10,000. Confirmations by mail are always free. Clients who place a trade over the phone
with a live agent pay $25.
There are no account inactivity, maintenance or closing fees at either broker.
This category is a tie.
Trading Funds
ETF's are available at either firm. As already mentioned, ETF's are commission-free at Robinhood. TD Ameritrade
also priced ETFs at $0 per trade. While Robinhood has zero mutual funds, TD Ameritrade offers more than 13,000
of them. Approximately 4,200 carry no transaction fee.
TD Ameritrade, obviously, is the better choice in this category.
Broker's Technology
The Robinhood website is primarily used for account sign up. There is no security research capability, nor are trades placed on it. Instead, the broker provides a mobile app where users can buy and sell ETF's and stocks. The app can be used on Apple and Android devices. There is also a Robinhood platform for Apple Watch. Unfortunately, charting is very elementary, without technical indicators, multiple graph styles, or drawing tools. A chart cannot be displayed horizontally. Since there is no charting on the broker's website, the broker's customers are at a real disadvantage if they need to do anything other than pay for a trade.
TD Ameritrade, on the other hand, boasts a very useful website. A handy trade bar named SnapTicket appears at the bottom of the window. It can display a small chart and submit orders for stocks, ETF's, and options. Investors can also use Trade Architect, a browser-based platform with a lot of useful features, including live streaming of CNBC. A more advanced desktop platform is available with approximately 400 technical studies. Both trading systems are free for all customers.
TD Ameritrade is definitely the winner here.
Cash Management Features
Investors at TD Ameritrade who need bank account features can add a debit card and checks at no cost. Doing so does not create a separate cash account. Rather, they are simply added to an existing brokerage account. Because balances are deposited in up to two FDIC-insured institutions, clients receive twice the standard amount of insurance. TD Ameritrade also rebates ATM charges incurred by its clients. Against all these great features, Robinhood customers have no cash management options.
Robinhood fails in this category, too.
Customer Service
TD Ameritrade has phone representatives available around the clock, day and night. There are agents during certain hours who speak Mandarin, Cantonese, and Spanish. The broker has over 100 brick-and-mortar locations for clients who want personal service and extra guidance.
Robinhood offers customer service over the phone only during market hours. The company's phone number is not toll-free. It has a Twitter account and an e-mail address. It took two days for the company to respond to a test e-mail.
The victory here goes to TD Ameritrade.
Other Investments
Both futures and forex trading are available at TD Ameritrade. These products can also be traded on the firm's most advanced desktop platform. Investors who don't have sufficient experience in these products can practice trading them using TD Ameritrade's paper trading feature, available at no cost. Robinhood has no futures or forex trading. In fact, it does not offer bonds or options.
Another victory for TD Ameritrade.
TD Ameritrade vs Robin Hood: Results
Robinhood failed to score even once, there was one tie, and TD Ameritrade won all other categories. TD Ameritrade
wins by a landslide. It is hard to defend Robinhood: even investors who need only the lowest possible
commissions will be better off at the competitor.
Open TD Ameritrade Account
Open Robinhood Account
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