Robinhood vs Stash 2019


Stash Invest vs Robinhood for online investing. Compare cost, brokerage fees, IRA accounts, and differences. Which firm is better?



Overview of Stash and Robinhood


Both Robinhood and Stash Investments are new-school brokerage firms that provide low-cost trading in exchange for mostly digital services. This article will determine which company delivers the better experience.


Pricing


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Robinhood $0 na $0 $0 na
Stash $0 na na 0.25% 0.25%


Category 1: Investment Vehicles


Robinhood clients get to trade options, exchange-traded funds, stocks, seven cryptocurrencies, and closed-end funds.

Stash offers trading in stocks and ETF’s only. Moreover, some stocks on the big US exchanges aren’t available. For example, iRobot (ticker symbol IRBT) is not available for purchase. Neither is SPY, one of the largest funds in the world.

The primary advantage Stash offers its customers in this category is the ability to buy fractional shares. The broker-dealer also has a portfolio builder tool that leads users step-by-step in creating a portfolio of ETF’s.

Robinhood looks like the overall better choice to us in this category.


Category 2: Websites


Robinhood’s website offers a basic trading platform that has all necessary tools. Charting offers a few technical studies, 2 graph styles, and a full-screen mode. The company’s order form incorporates extended-hours trading, multiple duration choices, and a few order types. There is a default watchlist, and it’s possible to add and delete entries.

Like Robinhood, Stash has an easy-to-use site. However, we didn’t find nearly as many resources on it. For example, there are no charts, which seems rather strange given the fact that (some) stocks are available for trading.

Additionally, there is no order form. Stash has a very simple form where customers enter the ticker symbol they want to buy along with a dollar amount. Stash then submits the order. It’s not a completely self-directed trading experience.

Another victory for Robinhood.


Category 3: Mobile Apps


Robinhood offers a mobile app that works on Apple and Android phones. Very limited charting is available. Only line format can be used, and there are no tools. The same order form on the website makes another appearance on the mobile app. Although there is no check deposit, we did like the ability to trade options and digital currencies.


Robinhood vs Stash


Besides its phone app, Robinhood also offers a platform for smartwatches. The software delivers the day’s price change, a small graph, an order confirmation (from the phone), and a watchlist.

Moving to Stash, we don’t get a smartwatch app, nor do we get a check deposit feature on the phone app. There are no charts of any kind on the platform. There also isn’t a trade ticket; but users can submit purchases of stocks and ETF’s, just as they can on the website. The same account management tools on the broker’s site can be found on the mobile app.

While it is close here, the slight edge goes to Robinhood.


Stash App Review


Category 4: Security Research


Stash does not have a stock or ETF screener, and it has very limited data on equities. During our investigation, we found a security’s year-to-date price change, its most recent price, a short company description, and a small chart (without any tools). On each security’s profile, there is also a risk level displayed. This is Stash’s own estimate of how safe or uncertain an investment is. Every stock we looked at had the same risk level from Stash: aggressive. This seems to us to be an oversimplification of stock investing.

Robinhood doesn’t have an equity screener, either. What the company does provide is tags on stock and ETF profiles. These are clickable, and clicking on one creates a list of investments in that category, such as consumer defensive stocks. The results can be sorted by various criteria.

Robinhood’s profiles present earnings histories, news articles, and limited trading data. Analyst ratings, which Stash doesn’t provide, are also displayed with brief comments.

Stash loses again.


Category 5: Other Services


Neither Stash nor Robinhood offers dividend reinvesting. Stash offers a couple of IRA choices, while Robinhood has no retirement accounts. Stash offers three types of automatic deposits, while Robinhood has no auto investing services.

Stash customers can open a deposit account with a debit card. There are no fees, and the banking tools can be linked to a brokerage account. Robinhood doesn’t offer cash management tools at this time.

Stash finally wins a category.


Our Recommendations


Beginners: New traders should go with Stash. Robinhood doesn’t offer any account management services, while Stash has a portfolio builder that would be good for newbies.

Retirement Saving: Obviously, Stash is the only option. The broker provides Roth and Traditional IRA’s.

Long-Term Investing: We pick Stash here for its portfolio-building tool.

Stock and ETF Trading: Robinhood is the only broker in this contest with an actual trading ticket.

Margin Trading: Stash doesn’t offer it, but Robinhood does.


Robinhood vs Stash Summary


On the whole, Robinhood is the winner of this survey. Nevertheless its rival does have some strong points in some areas, such as fractional-share trading and cash management tools.