E*TRADE vs Robinhood
An honest side-by-side comparison of two of our top investment platforms picks — pricing, strengths, weaknesses, and who each one is really for.
E*TRADE
Ranked #5 of 15 in this directory
Established online brokerage with powerful tools now part of Morgan Stanley
Robinhood
Ranked #4 of 15 in this directory
Commission-free trading app that democratized investing for a new generation
Our pick: Robinhood. Our editors rank Robinhood higher overall in Investment Platforms — but E*TRADE can be the better fit depending on your budget and use case below. How we review
Compare the details
| E*TRADE | Robinhood | |
|---|---|---|
| Pricing model | Freemium | Freemium |
| Starting price | See website | See website |
| Category | Brokerage | Brokerage |
| Editorial rank | #5 of 15 | #4 of 15 |
Strengths
E*TRADE
- ✓Power E*TRADE platform offers excellent options and futures trading tools
- ✓Morgan Stanley integration provides premium research access
- ✓Wide range of investment products including managed portfolios
- ✓Strong mobile app for both casual and active investors
- ✓Comprehensive retirement account options and planning tools
Robinhood
- ✓Intuitive mobile app that makes investing approachable for beginners
- ✓No account minimums and fractional shares starting at $1
- ✓Commission-free stocks, ETFs, options, and cryptocurrency trading
- ✓Robinhood Gold offers competitive cash interest rates
- ✓IPO access lets retail investors participate in initial public offerings
Watch out for
E*TRADE
- !Some advanced features are only available on specific platforms
- !Mutual fund commissions apply for non-NTF funds
- !Account interface can feel fragmented between E*TRADE and Morgan Stanley
- !Margin rates are higher than some discount competitors
Robinhood
- !Limited research and analysis tools compared to full-service brokerages
- !No retirement accounts like IRAs or 401(k) rollovers until recently
- !Customer service has historically been difficult to reach
- !Gamified interface may encourage excessive trading behavior
Best use cases
E*TRADE
- →Options trader wanting powerful analysis tools on Power E*TRADE
- →Employee with Morgan Stanley stock plans wanting an integrated brokerage
- →Active trader seeking a well-established platform with comprehensive tools
Robinhood
- →First-time investor wanting a simple, mobile-first way to start investing
- →Young adult building a portfolio with fractional shares and small amounts
- →Crypto-curious investor wanting stocks and crypto on one platform
About each tool
E*TRADE
E*TRADE, now a subsidiary of Morgan Stanley, is a pioneer in online brokerage offering zero-commission trading, the Power E*TRADE platform for active traders, and a comprehensive range of investment products. The integration with Morgan Stanley has expanded E*TRADE's capabilities to include access to Morgan Stanley research and workplace stock plan management.
Robinhood
Robinhood pioneered commission-free trading and made investing accessible to millions of first-time investors through its intuitive mobile app. The platform offers stocks, ETFs, options, and cryptocurrency trading with no minimum account balance. Robinhood Gold provides margin trading, professional research from Morningstar, and higher interest on uninvested cash. While Robinhood has faced criticism for its gamification of trading and limited research tools, it remains the gateway platform for many young investors entering the market for the first time.
Still deciding? Browse all 15 options with honest pros, cons, and pricing.
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