Robinhood vs Etrade 2024

Introduction to Robinhood

Before we get into Etrade vs Robinhood, let’s start by talking about the latter in this mini Robinhood review. There are plenty of people who would love to get involved in the world of trading but simply find the whole process intimidating. Robinhood has clearly made it their mission to help those people. They’ve crafted what could be the greatest mobile trading app in terms of ease of use out there, and considering the competition, that’s no small order.

Not only that, but with very low fees throughout and absolutely no minimums in terms of start-up costs, they really do everything they can to remove barriers into trading. Stocks, ETFs, Options and even Cryptocurrency trading is all made as practical as possible, with things like a news feed, customizable alerts and charts providing insights.

For a small $5 a month fee, you also get the opportunity to access research reports and trade on margin, meaning it does stretch further than a purely beginner audience. With that said, some experts will want more than is provided here, as focusing on ease of use does mean stripping away some features. That’s a huge part of this Robinhood vs Etrade debate. It’s a similar discussion we saw in our Webull vs Robinhood and Robinhood vs Fidelity reviews. We don’t view this as a flaw of Robinhood, more a natural consequence of the road they’ve chosen to take.

Introduction to Etrade

Before we ask ‘is Etrade better than Robinhood?’, let’s look at our second contestant. When it comes to Etrade or Robinhood, we have to figure out how good they actually are. In terms of ease of use, Etrade holds more of a middle ground compared to Robinhood’s unwavering commitment to keeping things simple. It’s a key component of this Robinhood vs Etrade battle. That’s because this is a great solution for people who want more of a spread of trading options and more features to get to grips with the markets.

Their apps are incredibly comprehensive: some of the most impressive you’re likely to come across. Indeed, many consider these platforms to be the absolute best in the world. They’re also beautifully designed, but there’s an inevitable built-in level of complexity when it comes to providing such an astounding amount of opportunities. Make no mistake though, every effort is made to create a streamlined experience, all the way down to prebuilt portfolios of varying risk.

In other words, if you want something that provides more options but manages to do so in a well-structured manner, this may be the best option. Their world-class reputation is well earned, whether we’re talking about Robinhood or Etrade.

Robinhood vs Etrade: Usability, Look & Feel

Both these operators absolutely excel when it comes to useability, look and feel. It’s a home run regardless of whether you choose Etrade or Robinhood. For Robinhood, many would argue this is their key selling point. Their target audience is based around making the world of finances accessible.

The difficulty they’ll have is that Etrade is considered by many to provide the best broker apps in the world. While we can’t quite say whether that’s the case for your individual needs, the fact that such a statement doesn’t appear foolish should tell you an awful lot about their awesome capabilities.

In terms of the apps, they’re absolutely world-class. Important information about your personal account is easy to find and understand, the design is stunning on both, and everything is about as simple as could be. What we would say though is that, although Etrade is suitable for newcomers, Robinhood may just nip over the finish line in that market. They also have the easier to use site and a slightly warmer design. With that said, for those looking for more features, Etrade takes the cake.

Robinhood vs Etrade: Payments

The benefits of both these options become immediately apparent here, with no account minimum for either. Chalk that part of Etrade vs Robinhood as a draw.

In terms of options, Etrade initially appears to have more. You can transfer money, opt for wire transfer, deposit a check, or transfer a whole account. You can also get an Etrade debit card. Robinhood offers instant deposits up to $1000, which is the same as Etrade’s debit card daily withdrawal limit, while everything else is a standard transfer that takes up to five days. There’s also no deposit fees we’re aware of from either.

Robinhood does have an ace up its sleeve with its cash management scheme. With this, you get access to a debit card, ACH account and routing number and, vitally, options to things like Apple, Google and Samsung Pay. Unfortunately, all this is subject to a waiting list. That makes a which is better here rather tricky because that’s a variable we can’t properly quantify, whereas the options at Etrade do feel more certain. Regardless, you’re sure to have several very reliable banking options no matter which you pick.

Robinhood vs Etrade: Customer Service

This is a really interesting Etrade vs Robinhood comparison because each excels in a different area. Robinhood has an absolutely fantastic website with great information. It’s so good that we think many people stuck on a certain subject will find their answers right there with ease. Writing quality is something of a hidden talent with Robinhood.

Etrade doesn’t explain itself as well. Their basic website doesn’t quite live up to the standards set by its other magnificent trading platforms, meaning you may struggle to find all the answers you want. In case you’re wondering, Etrade vs Robinhood readers, customer service absolutely does extend to things like Help sections. Indeed, we’d consider them the first port of call and among the most important elements for those starting with stock trading apps.

On the flip side of this Etrade vs Robinhood analysis, Etrade has a really strong customer service team, with support available through phone, email and live chat, 24 hours a day. With expert advice on hand, it’s pretty much flawless and really makes up for any lacking information elsewhere. Robinhood, on the other hand, are only contactable through email and social media.

Robinhood vs Etrade: License & Security

This is a vital part of any comparison, from this to our Robinhood vs TD Ameritrade article. We’ll begin this part of our Robinhood vs Etrade adventure by stating that both are members of FINRA. They enforce regulation in the financial industry and ensure that members are legitimate and follow necessary regulatory requirements in the US. The regulator of FINRA is ultimately the Securities and Exchange Commission. In other words, whether you go with Etrade or Robinhood, each has some serious credentials.

Etrade or Robinhood, both offer biometric recognition for their mobile apps, another draw in our Etrade vs Robinhood battle. Robinhood offers two-factor authentication too. In our Etrade vs Robinhood analysis, we found that both providers utilise encryption to protect data, among other security measures.

Robinhood is a private company, while Etrade is available on the stock market, but both have an excellent reputation despite their different positions. We’re not aware of any significant data breaches from either Robinhood or Etrade throughout 2019. All in all, both of these options appear excellent in terms of security.

Robinhood vs Etrade: Spread

There can be little doubt that in terms of sheer options, Etrade has more. This isn’t really a point of debate when it comes to Robinhood vs Etrade: they simply do.

There’s a huge selection of stocks, long and short, bonds, including corporate, municipal, treasury, CFD’s, international mutual funds and ETFs option, and futures. Just as important is their availability across three free trading platforms, once again with no minimums. Just take for instance, their thousands of no-transaction fee mutual funds, as one example of how they excel here.

Robinhood offers less, with long stocks, ETFs and Options, as well as cryptocurrency options. However, with no mutual funds or futures and less in general, Etrade pulls ahead here. However, we don’t want this analysis of Etrade or Robinhood to sound negative. Robinhood is about keeping things simple and that means they don’t have the same amount of choice as the Etrade platforms, which are built with serious investors in mind. Perhaps instead of considering it less, it should be considered streamlined because what’s available here is done so with the aim of making it accessible to a certain demographic.

In terms of the spread of trading options, what really matters is whether they deliver what their users would want, and we think on both counts, this is an absolute triumph. It’s more positivity: one offers a greater spread and more tools, but the other has an accessibility that’s hard to match.

Conclusion

What we have here with Robinhood vs Etrade are two options that are perfect for different audiences. They both have their own strengths and weaknesses. In the case of customer service, both are excellent whether you choose Etrade or Robinhood. When it comes to designing apps, it’s hard to see much that could be improved upon.

However, they do have slightly different aims and that’s where the differences between them start to shine through. Robinhood is all about ease of use. That means it keeps what it offers streamlined, providing an app that really is simple enough for beginners to use. Meanwhile, Etrade is more suitable for experienced investors. This means a wider spread of options and tools. They keep it as well designed and as accessible as possible too. That’s something you don’t have to worry about whether it’s Etrade or Robinhood, but there’s a fork in the road at this point.

As we looked into Robinhood vs Etrade for differences in options, that became the defining factor between them, with each being excellent in regard to security and payment methods, and each excelling in different areas of customer service. Is Robinhood or Etrade better? It all comes down to how experienced an investor you are, what options and tools you need, and what priorities are right for you. Both options we’ve examined for this Etrade vs Robinhood analysis have proven themselves near perfect for their target audience.

Interested to learn more about online trading? Start by taking a look at our forex strategy for beginners or online broker promotions in USA guides.

Robinhood vs Etrade FAQ