Robinhood vs. E TRADE - Which Online Brokerage is Best for Stock Trading?
When it comes to trading stocks online, there are no shortages of brokerage firms to choose from. However, two of the most popular platforms in the market today are Robinhood and E TRADE. But how do they compare when it comes to stock trading? Keep on reading to find out!
Robinhood
Robinhood is a commission-free platform that offers trading with no fees or commission charges. Founded in 2013 as a mobile app, Robinhood has grown into a full-service platform that offers web-based trading, margin trading, and even cryptocurrency trading. The platform offers a sleek and user-friendly interface, making it a favourite among new traders, but does this mean it's the best?
Pros:
- No commission fees for trades, options, or ETFs.
- User-friendly interface with extensive research options.
- Real-time market data and charts.
- Provides fractional shares for those with smaller investment amounts.
- Robinhood Gold offers pre-market and post-market trading.
Cons:
- Limited charting tools.
- Limited technical indicators for traders.
- Only offers taxable accounts.
- No mutual funds or bonds.
E TRADE
Founded in 1982, E TRADE is a well-established platform that offers a comprehensive trading suite for both beginners and experienced traders. It offers both web-based and mobile trading, and even provides a virtual trading simulator. However, with more features on the platform, come higher fees.
Pros:
- Offers a wide range of investment products, including retirement accounts, mutual funds, and bonds.
- Provides extensive research tools.
- Offers both web-based and mobile trading.
- Provides a virtual trading simulator to learn trading techniques.
- Offers technical indicators and charting tools for advanced traders.
Cons:
- Higher trading fees when compared to Robinhood, including commissions on trades, options, and ETFs.
- Mobile app is not as user-friendly as Robinhood's.
- Minimum balance requirements for some accounts.
Our Verdict
Both Robinhood and E TRADE offer compelling solutions for investors looking to trade stocks and other securities online. However, it's important to understand the differences and asses which platform is right for you.
If low fees are a priority, Robinhood may be a better option for you. However, if you're looking for more investment options or advanced trading features, E TRADE may be the better choice.
Ultimately, both platforms have their strengths and weaknesses, and it's up to the individual trader to decide which platform aligns with their trading goals and investment strategy.