Robinhood Vs Etrade Which One Is Better? In the world of online trading, Robinhood and Etrade are the two most important names for online investment. If you are just starting to invest, looking over Robinhood Vs Etrade review is a must. Basically, there is a slight difference between Robinhood and Etrade though they seems similar in certain cases.
In general, Robinhood takes online trading through laptop screens and smartphones. This way, Robinhood steps faster in providing investment apps. The competitor, Etrade, introduces its online investment by taking stocks and bonds through the web-based trading.
A financial advisor can offer advice or guidance on how to start investing, plan retirement, plan the finance and various areas of finance. Prior to taking this step, have a quick read on our review on Robinhood Vs Etrade comparison which include the overview, fees, service and features, online and mobile experience as well as who should use the platform.
Overview of Robinhood and Etrade
In so many ways, Robinhood and Etrade are the two different products. Simply put, Robinhood offers not only the low-friction but also an easy-to-use interface and no-fee trading while Etrade offers free stock and ETF trades without free mutual fund or option trades. Further, Etrade offers analytical tools that you can operate more sophisticatedly.
Etrade enables the investors to trade a wide range of securities like non-U.S securities, futures, options and cryptocurrencies. On the other hand, Robinhood allows them to access only limited range of securities, U.S stocks, options, ETFs and ADRs (American Depository Receipts.
Fees Of Robinhood Vs Etrade
Most traders thank to Robinhood for its no-fee trading. When there are so many trading option born to the markets with the cheaper pricing over the past 20 years, Robinhood became the first truly trading platform.
Basically, there are four types of fees that you need to look out before you choose a broker. They are trading fees, trading commissions, inactivity fees and non-trading fees.
Trading fees are the flat fees that a broker will charge as the “Spread”. You can use these fees for buying or selling an asset. Trading commissions is the fees that a broker will charge you in term of a percentage according to the volume of each trade you make.
If you just want to keep money in your brokerage account, you will be charged using inactivity fees. These inactivity fees are the fees that you pay for not trading. The last fees type is non-trading fees. Those are fees for trading on the platform which is not covered above.
The comparison of Robinhood Vs Etrade can be viewed from the fees they share. In this case, Robinhood charge no fee or commission on the trade. Similarly, Etrade also charge no fee or commission on trading stocks and exchange traded fund (ETFs).
In short, both Robinhood and Etrade offers no-fee or no-commission.
Service and Features
In online trading, Robinhood and Etrade are easy to compare especially in services and features they offer. Robinhood is a feature-limited trading platform focusing on providing access and low-complexity. This way, the users can trade not only U.S stocks but also ETFs, options and ADR (American Depository Receipts). Robinhood also allows the users to trade the most crypto-currencies.
Robinhood offers a few tools for investment analysis. It makes the trading accessible and easy. This way, Robinhood traders are easy to understand the screen for each asset they want to trade. The information will also be easy to obtain. The information includes the pricing history, basic statistics and purchasing information.
Etrade, on the other hand, offers a full service trading platform at which the investors can virtually buy any public traded U.S security and some other foreign products including stocks, ETFs, mutual funds, bonds, futures and options.
Etrade also offers a small number of crypto-currencies including Bitcoin and Ehterum. There is a full suite of tools for technical analysis and supports for data sets. The traders can also trade through the websites and applications. There are two desktop choices; the core brand, Etrade, and the more sophisticated Power Etrade. There are also two corresponding apps. The first is tied to Etrade core and the second is tied to Power Etrade.
This is how we are comparing Robinhood Vs Etrade on their services and mobile apps. The platforms look different since their goals are also different. Etrade offers a full-service on trading platform with a few omission while Robinhood offers more simplicity without any complicated analysis with a fewer options than Etrade.
Online and Mobile Experience
Either Robinhood or Etrade must have a difference in providing access to the customer services. In online and mobile experience, Robinhood offers only an e-mail address and FAQ while Etrade offers a wide range of customer services including FAQ, email, online chat and telephone number. Etrade present a big advantage in the user experience by providing services availability. This way, though these two platforms are equally well-designed, they are different products instead.
Etrade is basically designed with four different platforms, two apps and two websites. They presents not only the desired information for the users but also a quick access to the trading tools. However, as it has deep platforms, it should get deal with unavoidable complexity. This isn’t good for new starters. The users must take time to learn how to navigate.
On the other hand, Robinhood platform doesn’t support customization. It also needs only a little to navigate. The menu is easy-to-access and the categories are quickly given, making the investors able to navigate to the same products. The trading screens are stripped down along with the information, pricing history and trading options, making all easily accessible. However, these are all still limited to its competitor.
All in all, Etrade is better than Robinhood in offering online and mobile experience. Etrade comes with the various way of providing the customers with the services while Robohnood has only a limited way of it.
Who Should Use Either Robinhood Or Etrade
Who shoud use Robinhnood and who should use Etrade? The easiest selling point of Robinhood is its ease of use, quick investment, frictionless and little bit fun. Robinhood makes the investment too easy and quick, making it very appealing for new starters. Despite the fact, the users must be careful in making investment. Due to a few funds of the platform, the trading can be too risky. The most average investors barely understand about this. Therefore, Robinhood is more suitable for inexperienced investors ad novice.
On the other hand, Etrade comes more complex. It takes time to learn how to use the tools. Experienced investors already knew that they will use the tools and data sets for their complicated trades. If some novice use Etrade, they must slow down and do some research before committing their money.
All in all, Etrade is more suitable for virtual and excellent traders that have already had lots of trading experience. So, it is clear that comparing Robinhood Vs Etrade on who should use it depend much on how experienced the users are. Use Robinhood if you are just new comer with less experience and use Etrade if you have advanced with the complex experience of online trading.
Overall, Robinhood and Etrade are the two online brokers that are designed with zero-commission. You don’t have to pay anything for the commission. However, the difference between the platforms appear when it comes to services and features as well as online and mobile experience of each brokers.
Once you have decided on which broker you will choose, the next thing to do is finding a financial advisor. It wouldn’t be so hard to find this advisor since SmartAsset’s free matching too will help you do so. If you are ready to make the investment, pick an advisor.
No matter you choose Robinhood or even Etrade, you can use the easy-to-use asset allocation calculator which is the free and valuable tool to help you make investment decisions. So it’s definitely on your hands.