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Robinhood vs Vanguard 2024

StockBrokers.com

Written by StockBrokers.com

October 30, 2024

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

Robinhood
4/5 Stars Overall
  • Minimum Deposit: $0.00
  • Stock Trades: $0.00
  • Options (Per Contract): $0.00
Vanguard
4/5 Stars Overall
  • Minimum Deposit: $0.00
  • Stock Trades: $0.00
  • Options (Per Contract): $1.00

Investment options

Robinhood and Vanguard both cater to a wide range of online investment options, yet they serve different priorities for investors. Robinhood, with a rating of 3.5 stars, is appreciated for its user-friendly platform and accessibility to innovative investment venues like crypto trading, offering 19 different cryptocurrency coins that Vanguard does not. On the other hand, Vanguard boasts a stronger investment options rating at 4.5 stars and ranks higher at #9 compared to Robinhood's #14 according to StockBrokers.com. Vanguard is especially favored for its robust selection of mutual funds and advisor services, catering well to investors seeking long-term, diversified strategies.

Both platforms offer stock trading, margin trading, options trading, and Over-The-Counter (OTC) stocks, showing their versatility in traditional investment markets. Robinhood, however, stands out for its provision of fractional shares trading, enabling investors to purchase a portion of a share, which Vanguard does not support. Conversely, Vanguard supports mutual funds, which Robinhood does not offer, thus giving Vanguard an edge for investors focused on fund-based investment strategies.

Neither Robinhood nor Vanguard provides forex or futures trading, aligning them in these specific areas. However, when it comes to individual retirement accounts (IRAs), both platforms offer traditional and Roth IRAs, allowing investors to choose between tax-deferred or tax-free growth options. Vanguard’s additional advisor services provide comprehensive guidance for its investors, a feature not available with Robinhood, further distinguishing Vanguard for those who require personalized investment strategies.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
Stock Trading info Yes Yes
Margin Trading Yes Yes
Fractional Shares info Yes No info
OTC Stocks info Yes Yes
Mutual Funds info No Yes
Options Trading info Yes Yes
Futures Trading info No No
Crypto Trading info Yes info No
Crypto Trading - Total Coins info 19 0
Investment Options 3.5/5 Stars 4.5/5 Stars

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

Trading platforms and tools

When it comes to the overall trading platform experience, Robinhood and Vanguard offer distinct advantages that cater to different types of investors. Robinhood scores higher with a 3-star rating, placing it at #13 out of 18 brokers in rankings by StockBrokers.com for trading platforms and tools. In comparison, Vanguard holds a 2.5-star rating, falling at #18. This suggests that users might find Robinhood more appealing for certain trading needs, but each platform has its own strengths that suit particular investment strategies.

Neither Robinhood nor Vanguard offers a downloadable trading platform for Windows or Mac, which may limit those seeking robust software-based trading solutions. Both platforms, however, provide browser-based trading, which simplifies access for users across various devices. When it comes to charting tools, Vanguard edges out with nine technical indicators compared to Robinhood's six. Vanguard also offers index overlays and the display of corporate events on charts, features notably absent from Robinhood.

In terms of watch list customization, Vanguard shines with nine fields for watch lists, compared to Robinhood's three. However, neither platform supports paper trading, trading journals, or the capability to adjust open orders directly on a stock chart. Charting capabilities such as adding notes, showing historical trades, and offering drawing tools are also not available on either platform. While Robinhood may appeal with its straightforward simplicity, Vanguard provides more complex tools, albeit at a slightly lower ease-of-use rating.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
Web Trading Platform info Yes Yes
Desktop Trading Platform info No No
Desktop Platform (Mac) info No No
Paper Trading info No No
Watch Lists - Total Fields info 3 9
Charting - Indicators / Studies info 6 9
Charting - Drawing Tools info 0 0
Platforms & Tools 3/5 Stars 2.5/5 Stars

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

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Beginners and education

Robinhood and Vanguard both offer distinct yet limited educational resources for beginners and investors looking to expand their financial knowledge. Robinhood provides education in stock and options trading, yet falls short in educating users about ETFs, mutual funds, and bonds. The platform lacks interactive features like paper trading, educational videos, webinars, or quizzes, which might appeal to more interactive learners. While Robinhood's straightforward approach to trading appeals to many beginners, its educational resources earn it a rating of 3.5 stars, with a respectable #10 rank among 18 brokers surveyed by StockBrokers.com.

Vanguard, renowned for its comprehensive financial offerings, furnishes users with stock education support and offers educational videos to enhance investor understanding. However, the lack of ETF, options, mutual funds, and bonds education, alongside the absence of paper trading, webinars, or quizzes, limits the depth of its educational framework. Despite these constraints, Vanguard maintains a competitive educational stance with a 3.5-star rating and holds the #13 position in StockBrokers.com's evaluation of 18 brokers. Both platforms provide a foundation for financial education, but with room for growth in interactive and diversified learning tools.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
Education (Stocks) info Yes Yes
Education (ETFs) info No No
Education (Options) info Yes No
Education (Mutual Funds) info No No
Education (Bonds) info No No
Paper Trading info No No
Videos info No Yes
Webinars info No No
Education 3.5/5 Stars 3.5/5 Stars

Dive deeper: Best Stock Trading Platforms for Beginners of 2024

Stock trading apps

When comparing Robinhood and Vanguard in terms of their stock trading app capabilities, Robinhood clearly offers a more feature-rich experience for users, earning a rating of 4.5 stars compared to Vanguard's 3 stars. Ranked 9th out of 18 brokers by StockBrokers.com, Robinhood provides a comprehensive selection of functionalities such as mobile after-hours stok trading, options trading, and a variety of charting features, including multiple time frames and technical studies. While Vanguard also provides essential services, its apps rank last at 18th, reflecting limited features in comparison to Robinhood.

Both Robinhood and Vanguard offer iPhone and Android apps, granting users flexibility in device usage, with Robinhood also supporting an Apple Watch app. This sets Robinhood apart for those who favor connectivity across all devices. With Robinhood, users enjoy a diverse range of app capabilities, including streaming quotes, stock alerts, custom watch lists, and after-hours charting—all absent in Vanguard's offerings.

While neither app supports streaming live TV or videos on demand, Robinhood prevails with its user-customizable features, such as customizing watch list columns. Although both platforms allow viewing of multiple time frames for charting, only Robinhood provides technical studies, enhancing its utility for traders seeking deeper insights. Robinhood's robust app design and comprehensive features make it a more attractive choice for stock trading enthusiasts compared to the more basic offerings from Vanguard.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
iPhone App info Yes Yes
Android App info Yes Yes
Apple Watch App info Yes No
Stock Alerts info Yes No
Charting - After-Hours info Yes No
Charting - Technical Studies info 6 0
Mobile Trading Apps 4.5/5 Stars 3/5 Stars

Dive deeper: Best Stock Trading Apps of 2024

Fees

When comparing Robinhood and Vanguard, the key differentiators involve certain fees and rates that could influence your decision. While both platforms offer commission-free trades for stocks, Robinhood shines with a no-cost options trading feature, whereas Vanguard charges $1 per options contract. Additionally, Robinhood offers notably lower margin interest rates across various account balances, making it more budget-friendly for those utilizing margin trading. However, Vanguard offers the advantage of no fees for partial account transfers (ACAT), while Robinhood charges $100 for both partial and full transfers.

Both Robinhood and Vanguard have removed minimum deposit requirements, allowing investors to start trading without financial barriers. Investors may find comfort in Robinhood's absence of IRA annual fees, along with a fee-free IRA closure process. Conversely, Vanguard charges a $25 annual fee for IRAs, although both platforms do not impose a fee for closing these retirement accounts. This could be a deciding factor for cost-conscious investors prioritizing retirement savings.

In terms of additional services, Robinhood offers options trading and exercises with no added costs for assignments or exercise fees, offering an edge for options traders. Meanwhile, Vanguard matches these particular offerings with zero fees for options exercise and assignments as well, demonstrating that both brokerages provide competitive options trading environments aside from the per-contract fee. Overall, when choosing between Robinhood and Vanguard, investors should weigh these various charges and features to determine the best fit for their specific needs and trading strategies.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
Minimum Deposit $0.00 $0.00
Stock Trades $0.00 $0.00
Options (Per Contract) $0.00 $1.00
Options Exercise Fee $0.00 $0.00
Options Assignment Fee $0.00 $0.00
IRA Annual Fee $0.00 $25.00 info
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 comparing Robinhood and Vanguard for day trading capabilities, both platforms lack several key features that may be essential for active traders. Neither Robinhood nor Vanguard offer streaming time and sales for stocks, streaming live TV, direct market routing for stocks, or ladder trading. Users of these platforms will not find trading hotkeys for quick keyboard trade entry or level 2 quotes, which provide deeper market insights by showing the range of available bids and offers. Additionally, both services fall short in providing basic or advanced strategy backtesting, a crucial tool for traders looking to refine and test their strategies.

For traders interested in short selling, neither Robinhood nor Vanguard offers a short locator tool to view the real-time availability of shares available to short. Moreover, order liquidity rebates, which can make trading more cost-effective by providing maker/taker fee structures, are not available through either broker. Consequently, both Robinhood and Vanguard might be better suited for investors with strategies that don’t require the detailed data and tools that day traders typically rely on.

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

Dive deeper: Best Day Trading Platforms of 2024

Market Research

For investors focused on market research capabilities, Vanguard outperforms Robinhood. Vanguard provides extensive research options across various financial instruments, such as stocks, ETFs, mutual funds, bonds, and Pink Sheets/OTCBB. In contrast, Robinhood limits its research offerings to stocks, ETFs, and Pink Sheets/OTCBB, lacking in mutual fund and bonds research. This breadth of research resources positions Vanguard favorably, with a StockBrokers.com ranking of #9 compared to Robinhood's #14.

Vanguard enhances its research offer with the ability to view portfolio allocations by asset class and provides stock and ETF screeners for trade ideas, which Robinhood does not. While neither platform offers social media sentiment data for stock research or ESG insights, Vanguard edges ahead with downloadable PDF research reports for stocks, although limited to just two. Robinhood, on the other hand, offers none. Additionally, Vanguard supports mutual fund and bond screeners, enhancing investor capability to strategize diversification and portfolio management.

While both Robinhood and Vanguard cater to active investors with some level of research tools, Vanguard’s comprehensive suite, including mutual funds and bonds research, along with active portfolio insights and screening tools, nudges its market research rating higher at 3.5 stars compared to Robinhood’s 2.5 stars. These differences highlight Vanguard as the more resourceful choice for investors prioritizing detailed market research capabilities.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
Research - Stocks info Yes Yes
Screener - Stocks info No Yes
Research - ETFs info Yes Yes
Screener - ETFs info No Yes
Research - Mutual Funds info No Yes
Screener - Mutual Funds info No Yes
Research - Bonds info No Yes
Screener - Bonds info No Yes
Research 2.5/5 Stars 3.5/5 Stars

Banking

When comparing Robinhood and Vanguard for banking capabilities, neither platform offers traditional checking or savings accounts, which can be important for users seeking comprehensive banking solutions. However, Robinhood distinguishes itself by providing a debit card, while Vanguard does not. Both Robinhood and Vanguard do not offer credit cards or mortgage loans, limiting options for customers looking for credit services or home financing. Vanguard stands out in one area by offering certificates of deposit (CDs), whereas Robinhood does not provide this option, potentially attracting customers interested in saving through CDs. This comparison highlights differences in banking services that could influence users' platform preferences based on their specific financial needs and goals.

Feature Robinhood logoRobinhood
Vanguard logoVanguard
Checking Accounts info No No
Savings Accounts info No No
Debit Cards info Yes No
Credit Cards info No No
Mortgage Loans info No No
CDs info No Yes

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 Robinhood is better than Vanguard. Robinhood finished with an overall score of 84.5%, while Vanguard finished with a score of 80.3%.

Robinhood is very easy to use and its educational content is a joy to read. But, in today’s competitive market for your investing dollars, there are several more compelling options among brokerages.

FAQs

Can you trade cryptocurrency with Robinhood or Vanguard?

Robinhood offers crypto trading with access to 19 coins, whereas Vanguard does not provide any crypto trading options.

Dive deeper: Best Crypto Trading Platforms of 2024

Does Robinhood or Vanguard offer IRAs?

Robinhood and Vanguard both offer traditional and Roth IRA accounts, with Robinhood standing out by charging no annual fee, unlike Vanguard which imposes a $25 annual fee, while neither broker charges a closure fee for their IRA accounts.

Dive deeper: Best IRA Accounts of 2024

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Compare

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Overall Rating Robinhood Vanguard
Overall 4/5 Stars 4/5 Stars
Commissions & Fees 4.5/5 Stars 4.5/5 Stars
Investment Options 3.5/5 Stars 4.5/5 Stars
Platforms & Tools 3/5 Stars 2.5/5 Stars
Mobile Trading Apps 4.5/5 Stars 3/5 Stars
Research 2.5/5 Stars 3.5/5 Stars
Customer Service N/A 3/5 Stars
Education 3.5/5 Stars 3.5/5 Stars
Ease Of Use 5/5 Stars 5/5 Stars
Winner check_circle
Review Robinhood Review Vanguard Review
Broker Screenshots Robinhood Vanguard
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 Robinhood Vanguard
Minimum Deposit $0.00 $0.00
Stock Trades $0.00 $0.00
Penny Stock Fees (OTC) info N/A $0.00
Mutual Fund Trade Fee N/A Varies info
Options (Per Contract) $0.00 $1.00
Futures (Per Contract) (Not offered) (Not offered)
Broker Assisted Trade Fee N/A $25 info
Margin Rates Robinhood Vanguard
Margin Rate Under $25,000 6% 13.75% info
Margin Rate $25,000 to $49,999.99 6% 13.25%
Margin Rate $50,000 to $99,999.99 5.8% 12.75%
Margin Rate $100,000 to $249,999.99 5.5% 12.25%
Margin Rate $250,000 to $499,999.99 5.5% 11.75%
Margin Rate $500,000 to $999,999.99 5.5% 10.5%
Margin Rate Above $1,000,000 5.25% Varies info
Account Fees Robinhood Vanguard
IRA Annual Fee $0.00 $25.00 info
IRA Closure Fee $0.00 $0.00
Account Transfer Out (Partial) info $100.00 $0.00
Account Transfer Out (Full) info $100.00 $100.00 info
Options Exercise Fee $0.00 $0.00
Options Assignment Fee $0.00 $0.00
Investment Options Robinhood Vanguard
Stock Trading info Yes Yes
Margin Trading Yes Yes
Fractional Shares info Yes No info
OTC Stocks info Yes Yes
Options Trading info Yes Yes
Complex Options Max Legs info 4 4
Futures Trading info No No
Forex Trading info No No
Crypto Trading info Yes info No
Crypto Trading - Total Coins info 19 0
Mutual Funds (No Load) info 0 N/A
Mutual Funds (Total) info 0 N/A
Bonds (US Treasury) info No Yes
Bonds (Corporate) info No Yes
Bonds (Municipal) info No Yes
Traditional IRAs info Yes Yes
Roth IRAs info Yes Yes
Advisor Services info No Yes
International Countries (Stocks) info 0 0
Order Types Robinhood Vanguard
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 No
Order Type - OCO info No No
Order Type - OTO info No No
Order Type - Broker Assisted info No Yes
Beginners Robinhood Vanguard
Education (Stocks) info Yes Yes
Education (ETFs) info No No
Education (Options) info Yes No
Education (Mutual Funds) info No No
Education (Bonds) info No No
Education (Retirement) info No Yes
Retirement Calculator info No Yes
Investor Dictionary info Yes No
Paper Trading info No No
Videos info No Yes
Webinars info No No
Webinars (Archived) info No No
Progress Tracking info No No
Interactive Learning - Quizzes info No No
Stock Trading Apps Robinhood Vanguard
iPhone App info Yes Yes
Android App info Yes Yes
Apple Watch App info Yes No
Trading - Stocks info Yes Yes
Trading - After-Hours info Yes No
Trading - Simple Options info Yes No
Trading - Complex Options info Yes No
Order Ticket RT Quotes info Yes Yes
Order Ticket SRT Quotes info Yes No
Stock App Features Robinhood Vanguard
Market Movers (Top Gainers) info Yes No
Stream Live TV info No No
Videos on Demand info No No
Stock Alerts info Yes No
Option Chains Viewable info Yes No
Watch List (Real-time) info Yes No
Watch List (Streaming) info Yes No
Watch Lists - Create & Manage info Yes No
Watch Lists - Column Customization info Yes No
Stock App Charting Robinhood Vanguard
Charting - After-Hours info Yes No
Charting - Can Turn Horizontally info No No
Charting - Multiple Time Frames info Yes Yes
Charting - Technical Studies info 6 0
Charting - Study Customizations info Yes No
Charting - Stock Comparisons info No No
Trading Platforms Robinhood Vanguard
Active Trading Platform info N/A
Desktop Trading Platform info No No
Desktop Platform (Mac) info No No
Web Trading Platform info Yes Yes
Paper Trading info No No
Trade Journal info No No
Watch Lists - Total Fields info 3 9
Stock Chart Features Robinhood Vanguard
Charting - Adjust Trades on Chart info No No
Charting - Indicators / Studies info 6 9
Charting - Drawing Tools info 0 0
Charting - Notes info No No
Charting - Index Overlays info No Yes
Charting - Historical Trades info No No
Charting - Corporate Events info No Yes
Charting - Custom Date Range info No No
Charting - Custom Time Bars info No No
Charting - Automated Analysis info No No
Charting - Save Profiles info No No
Trade Ideas - Technical Analysis info No No
Charting - Study Customizations info 1 1
Charting - Custom Studies info No No
Day Trading Robinhood Vanguard
Streaming Time & Sales info No No
Streaming TV info No No
Direct Market Routing - Stocks info No No
Ladder Trading info No No
Trade Hotkeys info No No
Level 2 Quotes - Stocks info No info No
Trade Ideas - Backtesting info No No
Trade Ideas - Backtesting Adv info No No
Short Locator info No No
Order Liquidity Rebates info No No
Research Overview Robinhood Vanguard
Research - Stocks info Yes Yes
Research - ETFs info Yes Yes
Research - Mutual Funds info No Yes
Research - Pink Sheets / OTCBB info Yes Yes
Research - Bonds info No Yes
Screener - Stocks info No Yes
Screener - ETFs info No Yes
Screener - Mutual Funds info No Yes
Screener - Bonds info No Yes
Misc - Portfolio Allocation info No Yes
Stock Research Robinhood Vanguard
Stock Research - PDF Reports info 0 info 2
Stock Research - Earnings info Yes Yes
Stock Research - Insiders info No No
Stock Research - Social info No No
Stock Research - News info Yes Yes
Stock Research - ESG info No No
Stock Research - SEC Filings info No No
ETF Research Robinhood Vanguard
ETFs - Strategy Overview info Yes No
ETF Fund Facts - Inception Date info Yes No
ETF Fund Facts - Expense Ratio info Yes No
ETF Fund Facts - Net Assets info Yes No
ETF Fund Facts - Total Holdings info Yes No
ETFs - Top 10 Holdings info Yes No
ETFs - Sector Exposure info Yes No
ETFs - Risk Analysis info No No
ETFs - Ratings info No No
ETFs - Morningstar StyleMap info No No
ETFs - PDF Reports info No No
Mutual Fund Research Robinhood Vanguard
Mutual Funds - Strategy Overview info No Yes
Mutual Funds - Performance Chart info No Yes
Mutual Funds - Performance Analysis info No Yes
Mutual Funds - Prospectus info No Yes
Mutual Funds - 3rd Party Ratings info No No
Mutual Funds - Fees Breakdown info No Yes
Mutual Funds - Top 10 Holdings info No Yes
Mutual Funds - Asset Allocation info No No
Mutual Funds - Sector Allocation info No Yes
Mutual Funds - Country Allocation info No No
Mutual Funds - StyleMap info No Yes
Options Trading Robinhood Vanguard
Option Chains - Basic View info Yes Yes
Option Chains - Strategy View info No No
Option Chains - Streaming info Yes No
Option Chains - Total Columns info 17 9
Option Chains - Greeks info 5 0
Option Chains - Quick Analysis info Yes No
Option Analysis - P&L Charts info Yes No
Option Probability Analysis info No No
Option Probability Analysis Adv info No No
Option Positions - Greeks info Yes No
Option Positions - Greeks Streaming info Yes No
Option Positions - Adv Analysis info No No
Option Positions - Rolling info Yes No
Option Positions - Grouping info Yes No
Banking Robinhood Vanguard
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 No
Mortgage Loans info No No
Customer Service Robinhood Vanguard
Phone Support (Prospect Customers) info No Yes
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 No
24/7 Support info Yes No
Overall Robinhood Vanguard
Overall 4/5 Stars 4/5 Stars
Commissions & Fees 4.5/5 Stars 4.5/5 Stars
Investment Options 3.5/5 Stars 4.5/5 Stars
Platforms & Tools 3/5 Stars 2.5/5 Stars
Mobile Trading Apps 4.5/5 Stars 3/5 Stars
Research 2.5/5 Stars 3.5/5 Stars
Education 3.5/5 Stars 3.5/5 Stars
Ease Of Use 5/5 Stars 5/5 Stars
Winner check_circle
Review Robinhood Review Vanguard Review
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