Interactive Brokers vs. Robinhood – A Detailed Comparison
Discover our detailed comparison of Interactive Brokers and Robinhood to help determine which is best for you. Whether you’re a seasoned trader or just starting out, choosing the right platform can significantly impact your trading experience.
To make your research easier, we manually found key data for Interactive Brokers and Robinhood across the internet and compiled it all in this article.
- Advanced order types
- Best for automated trading
- Low options commissions
Overview of Interactive Brokers
Interactive Brokers (IBKR) is a well-established brokerage firm founded in 1978, known for providing advanced trading and investing services to a diverse clientele, including individual investors, institutions, and professional traders. IBKR offers competitive pricing for options and futures, but lacks when it comes to charting and ease of use.
✓ Advanced order types
✓ Best for automated trading
✓ Low options commissions
Interactive Brokers is Best For
Interactive Brokers is best for advanced traders who prefer to automate their trading strategies. IBKR is far from beginner-friendly, as the platforms are advanced and require some technical knowledge to utilize effectively. If you are looking for a modern, easy-to-use investing platform, IBKR is not your best option.
Overview of Robinhood
Robinhood is a popular commission-free brokerage platform that was founded in 2013. It gained significant attention for its user-friendly mobile app and the democratization of investing by eliminating traditional trading fees. Robinhood has attracted a large user base, primarily consisting of millennials and new investors seeking easy access to financial markets.
✓ No options commissions
✓ User-friendly interface
✓ Extended hours trading
Robinhood is Best For
Robinhood is best for beginners who want easy access to stocks, options, and crypto. The mobile app has an amazingly simple design, allowing anybody to take control of their financial future. Robinhood is a great choice for all investors except active traders requiring more advanced charting and order placement tools.
Key Characteristics of Interactive Brokers and Robinhood
| Platform | Platform Type | Tradeable Assets | Charting Features | Data | Premium Pricing |
|---|---|---|---|---|---|
| Interactive Brokers | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Futures, Futures Options, Crypto, Bonds | Downloadable desktop platforms, web platform, mobile app | Must buy real-time data | No premium features |
| Robinhood | Brokerage Platform | Stocks, ETFs, Options, Crypto | Basic charting on mobile and web app | Real-time data with funded account | $5/mo for Gold |
Trading Features and Tools
| Platform | DRIP | Margin Trading | Insurance | Mobile App |
|---|---|---|---|---|
| Interactive Brokers | Yes, but with fees | Yes | SIPC Insured | Yes |
| Robinhood | Yes, no fees | Yes | SIPC Insured | Yes |
Trading Costs and Commissions Compared
| Fee Type | Interactive Brokers | Robinhood |
|---|---|---|
| Equity Commission | Free | Free |
| Option Commission | $0.65 per contract | Free |
| Futures Commission | $0.85 per contract, $0.25 micro | No futures |
| Futures Options Commission | $0.85 per contract, $0.25 micro | No futures options |
| Option Exercise Fee | None | None |
Interactive Brokers vs Robinhood – Bottom Line
Choosing between Interactive Brokers and Robinhood depends on your specific trading needs, preferred trading tools, and the type of assets you’re interested in.
Both platforms offer distinct advantages, but by considering the detailed comparison above, you can select the one that aligns best with your trading strategy and goals.
For more detailed reviews and comparisons, continue exploring our other articles on brokerage platform comparisons.
What is the Overall Best Charting Software?
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- All of TradingView’s key features are free to use
- TradingView provides real-time data for free whenever possible
- You are not tied to a single broker and can use whichever you want while charting on TradingView
- You can track all markets on a single platform, including stocks, ETFs, crypto, forex, and futures.
- TradingView has an excellent economic calendar and various screeners
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