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Interactive Brokers vs Robinhood 2024

StockBrokers.com

Written by StockBrokers.com

October 30, 2024

In this head to head comparison of Interactive Brokers vs Robinhood, we will compare the trading platforms, mobile apps, investment options, costs, market research, and more. Let's dive in.

Interactive Brokers
4.5/5 Stars Overall
  • Minimum Deposit: $0.00
  • Stock Trades: $0.00
  • Options (Per Contract): $0.65
Robinhood
4/5 Stars Overall
  • Minimum Deposit: $0.00
  • Stock Trades: $0.00
  • Options (Per Contract): $0.00

Investment options

When comparing investment options, Interactive Brokers emerges as a versatile and comprehensive platform, offering a broader range of services, resulting in a top ranking for investment options by StockBrokers.com with a perfect 5-star rating. Robinhood, while popular for its user-friendly interface, falls short in some areas, receiving a 3.5-star rating and ranking 14th out of 18 brokers. Both platforms provide essential features such as stock, margin, options, and crypto trading, but Interactive Brokers excels in variety with additional offerings in forex and futures trading, as well as access to a vast number of mutual funds.

Both Interactive Brokers and Robinhood support stock trading, margin trading, and options trading, making them suitable for investors looking to engage in these markets. Additionally, both platforms enable fractional shares trading and crypto trading, although Robinhood stands out by offering 19 cryptocurrencies compared to Interactive Brokers' four. On the other hand, Interactive Brokers allows access to OTC stocks and forex trading, features Robinhood lacks. Furthermore, Interactive Brokers offers futures trading, catering to more advanced trading strategies.

When it comes to retirement accounts, both platforms provide options for traditional IRA and Roth IRA accounts, granting investors versatility in retirement planning. However, one notable difference is their approach to mutual funds and advisor services. Interactive Brokers supports mutual fund investments, broadening the scope for portfolio diversification, whereas Robinhood does not offer this feature. Neither platform provides advisor services, appealing to investors who prefer a DIY approach to managing their investments.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Stock Trading info Yes Yes
Margin Trading Yes Yes
Fractional Shares info Yes Yes
OTC Stocks info Yes Yes
Mutual Funds info Yes No
Options Trading info Yes Yes
Futures Trading info Yes No
Crypto Trading info Yes Yes info
Crypto Trading - Total Coins info 4 19
Investment Options 5/5 Stars 3.5/5 Stars

Dive deeper: Best Options Trading Platforms & Brokers, 5 Best Futures Trading Platforms of 2024

Trading platforms and tools

In evaluating the trading platforms and tools offered by Interactive Brokers and Robinhood, it's clear that Interactive Brokers emerges as the superior choice. Rated 5 stars and ranked first out of 18 brokers by StockBrokers.com, Interactive Brokers offers a comprehensive suite of tools for traders. In contrast, Robinhood, with a 3-star rating and a thirteenth-place ranking, provides a more limited set of features. This comparative analysis highlights Interactive Brokers as the more robust option for those seeking an advanced trading experience.

Interactive Brokers provides a versatile trading environment with both Windows and Mac desktop downloadable platforms, a feature Robinhood lacks entirely. Both brokers offer browser-based trading, yet Interactive Brokers stands out with the inclusion of paper trading and a trading journal, tools that are absent from Robinhood's platform. Additionally, traders at Interactive Brokers can enjoy extensive customizability with 659 watch list fields, a stark contrast to Robinhood's three.

Charting tools further differentiate these platforms. Interactive Brokers offers 155 technical indicators and 85 drawing tools, along with functionalities like notes, index overlays, historical trades, corporate events, and automated technical analysis that can be displayed on charts. Robinhood's offering is much more basic, with just six technical indicators and no drawing tools. The ability to adjust open orders directly on charts, set custom date ranges, and save multiple chart profiles are features exclusive to Interactive Brokers, solidifying its position as the preferred platform for serious traders.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Web Trading Platform info Yes Yes
Desktop Trading Platform info Yes No
Desktop Platform (Mac) info Yes No
Paper Trading info Yes No
Watch Lists - Total Fields info 659 3
Charting - Indicators / Studies info 155 6
Charting - Drawing Tools info 85 0
Platforms & Tools 5/5 Stars 3/5 Stars

Dive deeper: Best Stock Brokers for 2024, Best Paper Trading Platforms of 2024

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Beginners and education

When comparing the educational offerings of Interactive Brokers and Robinhood, it becomes clear that Interactive Brokers provides a more comprehensive learning experience for both beginners and seasoned investors. They offer extensive resources across multiple asset classes, including stocks, ETFs, options, mutual funds, and bonds. Additionally, Interactive Brokers supports various educational tools such as webinars, educational videos, quizzes, and the ability to track your learning progress, earning them a strong rating of 4.5 stars for education and a ranking of #5 among 18 brokers according to StockBrokers.com.

On the other hand, while Robinhood does offer some educational content related to stocks and options, their resources are limited, particularly when it comes to ETFs, mutual funds, and bonds, which are not covered. Furthermore, Robinhood lacks features such as paper trading, educational videos, webinars, and quizzes, resulting in a lower education rating of 3.5 stars and a ranking of #10 among the same group of brokers. For investors who prioritize robust educational resources, Interactive Brokers stands out as the superior choice.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Education (Stocks) info Yes Yes
Education (ETFs) info Yes No
Education (Options) info Yes Yes
Education (Mutual Funds) info Yes No
Education (Bonds) info Yes No
Paper Trading info Yes No
Videos info Yes No
Webinars info Yes No
Education 4.5/5 Stars 3.5/5 Stars

Dive deeper: Best Stock Trading Platforms for Beginners of 2024

Stock trading apps

When it comes to stock trading apps, Interactive Brokers and Robinhood each cater to different needs, making one a better fit than the other depending on your priorities. Interactive Brokers stands out with its robust mobile app offerings, scoring an impressive 5-star rating and claiming the top spot in StockBrokers.com's rankings. In contrast, Robinhood follows closely with a commendable 4.5-star rating, securing the 9th position. While both platforms provide iPhone and Android apps, the differences in features and functionalities could significantly influence your choice.

Interactive Brokers offers an extensive range of features that cater to more experienced investors, including streaming live TV and videos on demand—capabilities Robinhood lacks. Furthermore, Interactive Brokers provides a wide array of 97 technical studies for charting within their mobile app, significantly surpassing Robinhood’s 6 studies. Both platforms are equipped with options for mobile after-hours trading, streaming quotes, stock alerts, customizable watch lists, and the capacity to chart after-hours. However, Interactive Brokers allows chart viewing in landscape mode, a feature missing from Robinhood.

For users interested in technical analysis, Interactive Brokers supports multiple time frames for charting, while both apps do not offer stock comparisons on their charts. Additionally, while each app includes an Apple Watch feature, Interactive Brokers delivers more advanced features, which might justify its higher rating and ranking. Whether you value comprehensive technical tools and advanced features like streaming live TV or prefer Robinhood's straightforward interface can guide your decision in choosing the right stock trading app for your needs.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
iPhone App info Yes Yes
Android App info Yes Yes
Apple Watch App info Yes Yes
Stock Alerts info Yes Yes
Charting - After-Hours info Yes Yes
Charting - Technical Studies info 97 6
Mobile Trading Apps 5/5 Stars 4.5/5 Stars

Dive deeper: Best Stock Trading Apps of 2024

Fees

When it comes to choosing between Interactive Brokers and Robinhood, users will find both platforms offer competitive options with distinct advantages. Robinhood provides a no-cost structure for stock and options trading, making it ideal for traders seeking simplicity and low fees. In contrast, Interactive Brokers also offers commission-free trading for stocks but imposes a $0.65 fee per options contract, appealing to more experienced traders who may value a comprehensive trading environment. For margin balances, Robinhood edges ahead with lower interest rates, though Interactive Brokers stands out for its fee-free account transfer services, offering flexibility for users moving their investments.

Both platforms have removed the barrier of minimum deposit requirements, allowing traders to start investing with ease. Robinhood takes it a step further by eliminating the options contract fee, which will appeal to those frequently trading options. On the other hand, Interactive Brokers, while charging $0.65 per options contract, offers an impressive array of tools and services that may be appreciated by active traders who prioritize robust analytics and trading capabilities.

In terms of account-related fees, both Interactive Brokers and Robinhood charge $0.00 for IRA annual fees and IRA closure fees. However, a significant difference arises in account transfer charges, where Interactive Brokers charges nothing for both partial and full account transfers, in contrast to Robinhood’s $100 fee for each. Such distinctions can influence the decision for investors who prioritize flexibility in managing and transferring their investments across platforms.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Minimum Deposit $0.00 $0.00
Stock Trades $0.00 $0.00
Options (Per Contract) $0.65 $0.00
Options Exercise Fee $0.00 $0.00
Options Assignment Fee $0.00 $0.00
IRA Annual Fee $0.00 $0.00
IRA Closure Fee $0.00 $0.00
Commissions & Fees 4.5/5 Stars 4.5/5 Stars

Dive deeper: Best Brokers for Free Stock Trading of 2024

Day Trading

When it comes to day trading capabilities, Interactive Brokers presents a robust platform that significantly outshines Robinhood in various critical aspects. Interactive Brokers offers a comprehensive suite of tools such as streaming time and sales for stocks, streaming live TV, and direct market routing, all of which are absent in Robinhood's offerings. Additionally, Interactive Brokers provides ladder trading and trading hotkeys for keyboard trade entry, essential tools for active traders seeking efficiency and precision in their daily trades; Robinhood does not support these features. Furthermore, Interactive Brokers stands out with its provision of level 2 quotes and both basic and advanced strategy backtesting facilities, enhancing the analytical capabilities of traders, features that are not available on Robinhood's platform.

Moreover, Interactive Brokers offers traders a short locator tool enabling real-time availability views for shares available to short by security, a crucial feature that Robinhood lacks entirely. Interactive Brokers also provides order liquidity rebates, further enhancing cost-effectiveness and facilitating active trading, while Robinhood does not offer these rebates. These distinct offerings underscore Interactive Brokers' commitment to equipping day traders with sophisticated tools that accommodate complex and high-frequency trading strategies, making it a superior choice for traders compared to Robinhood’s more simplified, feature-limited platform.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Streaming Time & Sales info Yes No
Streaming TV info Yes No
Direct Market Routing - Stocks info Yes No
Level 2 Quotes - Stocks info Yes No info
Trade Ideas - Backtesting info Yes No
Trade Ideas - Backtesting Adv info Yes No
Short Locator info Yes No

Dive deeper: Best Day Trading Platforms of 2024

Market Research

Interactive Brokers and Robinhood both provide market research capabilities, but they differ significantly in the breadth and depth of their offerings. Interactive Brokers is a comprehensive platform, excelling with a wide array of research options including stocks, ETFs, mutual funds, and bonds, backed by 17 downloadable PDF research reports for stocks alone. In contrast, Robinhood offers limited market research features, primarily targeting stocks and ETFs without the support of mutual funds or bond research. This disparity in offerings results in Interactive Brokers being rated 5 stars and securing the #2 rank in market research by StockBrokers.com, while Robinhood holds a 2.5-star rating and ranks at #14.

Both platforms offer research capabilities for stocks and ETFs, with the additional benefit of Pink Sheets/OTCBB research. However, Interactive Brokers stands out by offering detailed ESG research and utilizing social media sentiment data, tools unavailable through Robinhood. The capability to view portfolio allocation by asset class is another area where Interactive Brokers excels, enhancing investor insight into asset distribution which Robinhood does not support.

When it comes to generating trade ideas, Interactive Brokers offers an extensive range of screeners across asset classes like stocks, ETFs, mutual funds, and bonds. These tools provide traders with comprehensive insights and possibilities for diversification. Robinhood, however, lacks comparable resources, offering no screeners for trade ideas within its platform. Such limitations highlight Interactive Brokers' superiority in market research, underscoring a more robust and research-focused experience for its users.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Research - Stocks info Yes Yes
Screener - Stocks info Yes No
Research - ETFs info Yes Yes
Screener - ETFs info Yes No
Research - Mutual Funds info Yes No
Screener - Mutual Funds info Yes No
Research - Bonds info Yes No
Screener - Bonds info Yes No
Research 5/5 Stars 2.5/5 Stars

Banking

When comparing the banking capabilities of Interactive Brokers and Robinhood, both platforms demonstrate limitations in traditional banking services. Neither Interactive Brokers nor Robinhood provides checking or savings accounts, nor do they offer credit cards or mortgage loans. However, both brokers offer debit cards to their users. A distinguishing feature is that Interactive Brokers offers Certificates of Deposit (CDs), whereas Robinhood does not. This difference underscores Interactive Brokers' broader range of financial products compared to Robinhood, though neither platform fully competes with conventional bank offerings.

Feature Interactive Brokers logoInteractive Brokers
Robinhood logoRobinhood
Checking Accounts info No No
Savings Accounts info No No
Debit Cards info Yes Yes
Credit Cards info No No
Mortgage Loans info No No
CDs info Yes No

Dive deeper: Best Bank Brokerages of 2024

Winner

After opening live accounts and testing 18 of the best online brokers, our research and live account testing finds that Interactive Brokers is better than Robinhood. Interactive Brokers finished with an overall score of 93.5%, while Robinhood finished with a score of 84.5%.

Interactive Brokers is a go-to choice for professionals because of its institutional-grade desktop trading platform, high-quality trade executions and rock-bottom margin rates.

FAQs

Can you trade cryptocurrency with Interactive Brokers or Robinhood?

Interactive Brokers and Robinhood both provide crypto trading services, but while Interactive Brokers offers 4 coins for trading, Robinhood provides a more extensive selection with 19 coins available for traders.

Dive deeper: Best Crypto Trading Platforms of 2024

Does Interactive Brokers or Robinhood offer IRAs?

Interactive Brokers and Robinhood both offer traditional and Roth IRA accounts with no annual or closure fees, making them both cost-effective options for retirement savings.

Dive deeper: Best IRA Accounts of 2024

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Compare

0 of 5
Overall Rating Interactive Brokers Robinhood
Overall 4.5/5 Stars 4/5 Stars
Commissions & Fees 4.5/5 Stars 4.5/5 Stars
Investment Options 5/5 Stars 3.5/5 Stars
Platforms & Tools 5/5 Stars 3/5 Stars
Mobile Trading Apps 5/5 Stars 4.5/5 Stars
Research 5/5 Stars 2.5/5 Stars
Customer Service 4/5 Stars N/A
Education 4.5/5 Stars 3.5/5 Stars
Ease Of Use 4.5/5 Stars 5/5 Stars
Winner check_circle
Review Interactive Brokers Review Robinhood Review
Broker Screenshots Interactive Brokers Robinhood
Trading Platform & Tools Gallery (click to expand)
Research Gallery (click to expand)
Mobile Trading Apps Gallery (click to expand)
Education Gallery (click to expand)
Trading Fees Interactive Brokers Robinhood
Minimum Deposit $0.00 $0.00
Stock Trades $0.00 $0.00
Penny Stock Fees (OTC) info $0.00 N/A
Mutual Fund Trade Fee $14.95 N/A
Options (Per Contract) $0.65 $0.00
Futures (Per Contract) $0.85 (Not offered)
Broker Assisted Trade Fee $30 N/A
Margin Rates Interactive Brokers Robinhood
Margin Rate Under $25,000 7.83% info 6%
Margin Rate $25,000 to $49,999.99 7.83% info 6%
Margin Rate $50,000 to $99,999.99 7.83% info 5.8%
Margin Rate $100,000 to $249,999.99 7.83% info 5.5%
Margin Rate $250,000 to $499,999.99 7.83% info 5.5%
Margin Rate $500,000 to $999,999.99 7.83% info 5.5%
Margin Rate Above $1,000,000 7.83% info 5.25%
Account Fees Interactive Brokers Robinhood
IRA Annual Fee $0.00 $0.00
IRA Closure Fee $0.00 $0.00
Account Transfer Out (Partial) info $0.00 $100.00
Account Transfer Out (Full) info $0.00 $100.00
Options Exercise Fee $0.00 $0.00
Options Assignment Fee $0.00 $0.00
Investment Options Interactive Brokers Robinhood
Stock Trading info Yes Yes
Margin Trading Yes Yes
Fractional Shares info Yes Yes
OTC Stocks info Yes Yes
Options Trading info Yes Yes
Complex Options Max Legs info 6 4
Futures Trading info Yes No
Forex Trading info Yes No
Crypto Trading info Yes Yes info
Crypto Trading - Total Coins info 4 19
Mutual Funds (No Load) info 10988 0
Mutual Funds (Total) info 11456 0
Bonds (US Treasury) info Yes No
Bonds (Corporate) info Yes No
Bonds (Municipal) info Yes No
Traditional IRAs info Yes Yes
Roth IRAs info Yes Yes
Advisor Services info No No
International Countries (Stocks) info 33 0
Order Types Interactive Brokers Robinhood
Order Type - Market info Yes Yes
Order Type - Limit info Yes Yes
Order Type - After Hours info Yes Yes
Order Type - Stop info Yes Yes
Order Type - Trailing Stop info Yes Yes
Order Type - OCO info Yes No
Order Type - OTO info Yes No
Order Type - Broker Assisted info Yes No
Beginners Interactive Brokers Robinhood
Education (Stocks) info Yes Yes
Education (ETFs) info Yes No
Education (Options) info Yes Yes
Education (Mutual Funds) info Yes No
Education (Bonds) info Yes No
Education (Retirement) info Yes No
Retirement Calculator info Yes No
Investor Dictionary info Yes Yes
Paper Trading info Yes No
Videos info Yes No
Webinars info Yes No
Webinars (Archived) info Yes No
Progress Tracking info Yes No
Interactive Learning - Quizzes info Yes No
Stock Trading Apps Interactive Brokers Robinhood
iPhone App info Yes Yes
Android App info Yes Yes
Apple Watch App info Yes Yes
Trading - Stocks info Yes Yes
Trading - After-Hours info Yes Yes
Trading - Simple Options info Yes Yes
Trading - Complex Options info Yes Yes
Order Ticket RT Quotes info Yes Yes
Order Ticket SRT Quotes info Yes Yes
Stock App Features Interactive Brokers Robinhood
Market Movers (Top Gainers) info Yes Yes
Stream Live TV info Yes No
Videos on Demand info Yes No
Stock Alerts info Yes Yes
Option Chains Viewable info Yes Yes
Watch List (Real-time) info Yes Yes
Watch List (Streaming) info Yes Yes
Watch Lists - Create & Manage info Yes Yes
Watch Lists - Column Customization info Yes Yes
Stock App Charting Interactive Brokers Robinhood
Charting - After-Hours info Yes Yes
Charting - Can Turn Horizontally info Yes No
Charting - Multiple Time Frames info Yes Yes
Charting - Technical Studies info 97 6
Charting - Study Customizations info Yes Yes
Charting - Stock Comparisons info No No
Trading Platforms Interactive Brokers Robinhood
Active Trading Platform info Trader Workstation (TWS)
Desktop Trading Platform info Yes No
Desktop Platform (Mac) info Yes No
Web Trading Platform info Yes Yes
Paper Trading info Yes No
Trade Journal info Yes No
Watch Lists - Total Fields info 659 3
Stock Chart Features Interactive Brokers Robinhood
Charting - Adjust Trades on Chart info Yes No
Charting - Indicators / Studies info 155 6
Charting - Drawing Tools info 85 0
Charting - Notes info Yes No
Charting - Index Overlays info Yes No
Charting - Historical Trades info Yes No
Charting - Corporate Events info Yes No
Charting - Custom Date Range info Yes No
Charting - Custom Time Bars info Yes No
Charting - Automated Analysis info Yes No
Charting - Save Profiles info Yes No
Trade Ideas - Technical Analysis info Yes No
Charting - Study Customizations info 6 1
Charting - Custom Studies info No No
Day Trading Interactive Brokers Robinhood
Streaming Time & Sales info Yes No
Streaming TV info Yes No
Direct Market Routing - Stocks info Yes No
Ladder Trading info Yes No
Trade Hotkeys info Yes No
Level 2 Quotes - Stocks info Yes No info
Trade Ideas - Backtesting info Yes No
Trade Ideas - Backtesting Adv info Yes No
Short Locator info Yes No
Order Liquidity Rebates info Yes No
Research Overview Interactive Brokers Robinhood
Research - Stocks info Yes Yes
Research - ETFs info Yes Yes
Research - Mutual Funds info Yes No
Research - Pink Sheets / OTCBB info Yes Yes
Research - Bonds info Yes No
Screener - Stocks info Yes No
Screener - ETFs info Yes No
Screener - Mutual Funds info Yes No
Screener - Bonds info Yes No
Misc - Portfolio Allocation info Yes No
Stock Research Interactive Brokers Robinhood
Stock Research - PDF Reports info 17 info 0 info
Stock Research - Earnings info Yes Yes
Stock Research - Insiders info Yes No
Stock Research - Social info Yes No
Stock Research - News info Yes Yes
Stock Research - ESG info Yes No
Stock Research - SEC Filings info Yes No
ETF Research Interactive Brokers Robinhood
ETFs - Strategy Overview info Yes Yes
ETF Fund Facts - Inception Date info Yes Yes
ETF Fund Facts - Expense Ratio info Yes Yes
ETF Fund Facts - Net Assets info Yes Yes
ETF Fund Facts - Total Holdings info Yes Yes
ETFs - Top 10 Holdings info Yes Yes
ETFs - Sector Exposure info Yes Yes
ETFs - Risk Analysis info Yes No
ETFs - Ratings info Yes No
ETFs - Morningstar StyleMap info Yes No
ETFs - PDF Reports info Yes No
Mutual Fund Research Interactive Brokers Robinhood
Mutual Funds - Strategy Overview info Yes No
Mutual Funds - Performance Chart info Yes No
Mutual Funds - Performance Analysis info Yes No
Mutual Funds - Prospectus info Yes No
Mutual Funds - 3rd Party Ratings info Yes No
Mutual Funds - Fees Breakdown info Yes No
Mutual Funds - Top 10 Holdings info Yes No
Mutual Funds - Asset Allocation info Yes No
Mutual Funds - Sector Allocation info Yes No
Mutual Funds - Country Allocation info Yes No
Mutual Funds - StyleMap info Yes No
Options Trading Interactive Brokers Robinhood
Option Chains - Basic View info Yes Yes
Option Chains - Strategy View info Yes No
Option Chains - Streaming info Yes Yes
Option Chains - Total Columns info 38 17
Option Chains - Greeks info 12 5
Option Chains - Quick Analysis info Yes Yes
Option Analysis - P&L Charts info Yes Yes
Option Probability Analysis info Yes No
Option Probability Analysis Adv info Yes No
Option Positions - Greeks info Yes Yes
Option Positions - Greeks Streaming info Yes Yes
Option Positions - Adv Analysis info Yes No
Option Positions - Rolling info Yes Yes
Option Positions - Grouping info Yes Yes
Banking Interactive Brokers Robinhood
Bank (Member FDIC) info No No
Checking Accounts info No No
Savings Accounts info No No
Credit Cards info No No
Debit Cards info Yes Yes
Mortgage Loans info No No
Customer Service Interactive Brokers Robinhood
Phone Support (Prospect Customers) info Yes No
Phone Support (Current Customers) info Yes Yes
Email Support info Yes Yes
Live Chat (Prospect Customers) info No No
Live Chat (Current Customers) info Yes Yes
24/7 Support info No Yes
Overall Interactive Brokers Robinhood
Overall 4.5/5 Stars 4/5 Stars
Commissions & Fees 4.5/5 Stars 4.5/5 Stars
Investment Options 5/5 Stars 3.5/5 Stars
Platforms & Tools 5/5 Stars 3/5 Stars
Mobile Trading Apps 5/5 Stars 4.5/5 Stars
Research 5/5 Stars 2.5/5 Stars
Education 4.5/5 Stars 3.5/5 Stars
Ease Of Use 4.5/5 Stars 5/5 Stars
Winner check_circle
Review Interactive Brokers Review Robinhood Review
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