Robinhood vs Vanguard 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.
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 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
|
Vanguard
|
---|---|---|
Stock Trading | Yes | Yes |
Margin Trading | Yes | Yes |
Fractional Shares | Yes | No |
OTC Stocks | Yes | Yes |
Mutual Funds | No | Yes |
Options Trading | Yes | Yes |
Futures Trading | No | No |
Crypto Trading | Yes | No |
Crypto Trading - Total Coins | 19 | 0 |
Investment Options |
Dive deeper: Best Options Trading Platforms & Brokers, 5 Best Futures Trading Platforms of 2024
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
|
Vanguard
|
---|---|---|
Web Trading Platform | Yes | Yes |
Desktop Trading Platform | No | No |
Desktop Platform (Mac) | No | No |
Paper Trading | No | No |
Watch Lists - Total Fields | 3 | 9 |
Charting - Indicators / Studies | 6 | 9 |
Charting - Drawing Tools | 0 | 0 |
Platforms & Tools |
Dive deeper: Best Stock Brokers for 2024, Best Paper Trading Platforms of 2024
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
|
Vanguard
|
---|---|---|
Education (Stocks) | Yes | Yes |
Education (ETFs) | No | No |
Education (Options) | Yes | No |
Education (Mutual Funds) | No | No |
Education (Bonds) | No | No |
Paper Trading | No | No |
Videos | No | Yes |
Webinars | No | No |
Education |
Dive deeper: Best Stock Trading Platforms for Beginners of 2024
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
|
Vanguard
|
---|---|---|
iPhone App | Yes | Yes |
Android App | Yes | Yes |
Apple Watch App | Yes | No |
Stock Alerts | Yes | No |
Charting - After-Hours | Yes | No |
Charting - Technical Studies | 6 | 0 |
Mobile Trading Apps |
Dive deeper: Best Stock Trading Apps of 2024
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
|
Vanguard
|
---|---|---|
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 |
IRA Closure Fee | $0.00 | $0.00 |
Commissions & Fees |
Dive deeper: Best Brokers for Free Stock Trading of 2024
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
|
Vanguard
|
---|---|---|
Streaming Time & Sales | No | No |
Streaming TV | No | No |
Direct Market Routing - Stocks | No | No |
Level 2 Quotes - Stocks | No | No |
Trade Ideas - Backtesting | No | No |
Trade Ideas - Backtesting Adv | No | No |
Short Locator | No | No |
Dive deeper: Best Day Trading Platforms of 2024
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
|
Vanguard
|
---|---|---|
Research - Stocks | Yes | Yes |
Screener - Stocks | No | Yes |
Research - ETFs | Yes | Yes |
Screener - ETFs | No | Yes |
Research - Mutual Funds | No | Yes |
Screener - Mutual Funds | No | Yes |
Research - Bonds | No | Yes |
Screener - Bonds | No | Yes |
Research |
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
|
Vanguard
|
---|---|---|
Checking Accounts | No | No |
Savings Accounts | No | No |
Debit Cards | Yes | No |
Credit Cards | No | No |
Mortgage Loans | No | No |
CDs | No | Yes |
Dive deeper: Best Bank Brokerages of 2024
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.
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
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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0 of 5Overall Rating | Robinhood | Vanguard | |
---|---|---|---|
Overall | |||
Commissions & Fees | |||
Investment Options | |||
Platforms & Tools | |||
Mobile Trading Apps | |||
Research | |||
Customer Service | N/A | ||
Education | |||
Ease Of Use | |||
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) | N/A | $0.00 | |
Mutual Fund Trade Fee | N/A | Varies | |
Options (Per Contract) | $0.00 | $1.00 | |
Futures (Per Contract) | (Not offered) | (Not offered) | |
Broker Assisted Trade Fee | N/A | $25 |
Margin Rates | Robinhood | Vanguard | |
---|---|---|---|
Margin Rate Under $25,000 | 6% | 13.75% | |
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 |
Account Fees | Robinhood | Vanguard | |
---|---|---|---|
IRA Annual Fee | $0.00 | $25.00 | |
IRA Closure Fee | $0.00 | $0.00 | |
Account Transfer Out (Partial) | $100.00 | $0.00 | |
Account Transfer Out (Full) | $100.00 | $100.00 | |
Options Exercise Fee | $0.00 | $0.00 | |
Options Assignment Fee | $0.00 | $0.00 |
Investment Options | Robinhood | Vanguard | |
---|---|---|---|
Stock Trading | Yes | Yes | |
Margin Trading | Yes | Yes | |
Fractional Shares | Yes | No | |
OTC Stocks | Yes | Yes | |
Options Trading | Yes | Yes | |
Complex Options Max Legs | 4 | 4 | |
Futures Trading | No | No | |
Forex Trading | No | No | |
Crypto Trading | Yes | No | |
Crypto Trading - Total Coins | 19 | 0 | |
Mutual Funds (No Load) | 0 | N/A | |
Mutual Funds (Total) | 0 | N/A | |
Bonds (US Treasury) | No | Yes | |
Bonds (Corporate) | No | Yes | |
Bonds (Municipal) | No | Yes | |
Traditional IRAs | Yes | Yes | |
Roth IRAs | Yes | Yes | |
Advisor Services | No | Yes | |
International Countries (Stocks) | 0 | 0 |
Order Types | Robinhood | Vanguard | |
---|---|---|---|
Order Type - Market | Yes | Yes | |
Order Type - Limit | Yes | Yes | |
Order Type - After Hours | Yes | Yes | |
Order Type - Stop | Yes | Yes | |
Order Type - Trailing Stop | Yes | No | |
Order Type - OCO | No | No | |
Order Type - OTO | No | No | |
Order Type - Broker Assisted | No | Yes |
Beginners | Robinhood | Vanguard | |
---|---|---|---|
Education (Stocks) | Yes | Yes | |
Education (ETFs) | No | No | |
Education (Options) | Yes | No | |
Education (Mutual Funds) | No | No | |
Education (Bonds) | No | No | |
Education (Retirement) | No | Yes | |
Retirement Calculator | No | Yes | |
Investor Dictionary | Yes | No | |
Paper Trading | No | No | |
Videos | No | Yes | |
Webinars | No | No | |
Webinars (Archived) | No | No | |
Progress Tracking | No | No | |
Interactive Learning - Quizzes | No | No |
Stock Trading Apps | Robinhood | Vanguard | |
---|---|---|---|
iPhone App | Yes | Yes | |
Android App | Yes | Yes | |
Apple Watch App | Yes | No | |
Trading - Stocks | Yes | Yes | |
Trading - After-Hours | Yes | No | |
Trading - Simple Options | Yes | No | |
Trading - Complex Options | Yes | No | |
Order Ticket RT Quotes | Yes | Yes | |
Order Ticket SRT Quotes | Yes | No |
Stock App Features | Robinhood | Vanguard | |
---|---|---|---|
Market Movers (Top Gainers) | Yes | No | |
Stream Live TV | No | No | |
Videos on Demand | No | No | |
Stock Alerts | Yes | No | |
Option Chains Viewable | Yes | No | |
Watch List (Real-time) | Yes | No | |
Watch List (Streaming) | Yes | No | |
Watch Lists - Create & Manage | Yes | No | |
Watch Lists - Column Customization | Yes | No |
Stock App Charting | Robinhood | Vanguard | |
---|---|---|---|
Charting - After-Hours | Yes | No | |
Charting - Can Turn Horizontally | No | No | |
Charting - Multiple Time Frames | Yes | Yes | |
Charting - Technical Studies | 6 | 0 | |
Charting - Study Customizations | Yes | No | |
Charting - Stock Comparisons | No | No |
Trading Platforms | Robinhood | Vanguard | |
---|---|---|---|
Active Trading Platform | N/A | ||
Desktop Trading Platform | No | No | |
Desktop Platform (Mac) | No | No | |
Web Trading Platform | Yes | Yes | |
Paper Trading | No | No | |
Trade Journal | No | No | |
Watch Lists - Total Fields | 3 | 9 |
Stock Chart Features | Robinhood | Vanguard | |
---|---|---|---|
Charting - Adjust Trades on Chart | No | No | |
Charting - Indicators / Studies | 6 | 9 | |
Charting - Drawing Tools | 0 | 0 | |
Charting - Notes | No | No | |
Charting - Index Overlays | No | Yes | |
Charting - Historical Trades | No | No | |
Charting - Corporate Events | No | Yes | |
Charting - Custom Date Range | No | No | |
Charting - Custom Time Bars | No | No | |
Charting - Automated Analysis | No | No | |
Charting - Save Profiles | No | No | |
Trade Ideas - Technical Analysis | No | No | |
Charting - Study Customizations | 1 | 1 | |
Charting - Custom Studies | No | No |
Day Trading | Robinhood | Vanguard | |
---|---|---|---|
Streaming Time & Sales | No | No | |
Streaming TV | No | No | |
Direct Market Routing - Stocks | No | No | |
Ladder Trading | No | No | |
Trade Hotkeys | No | No | |
Level 2 Quotes - Stocks | No | No | |
Trade Ideas - Backtesting | No | No | |
Trade Ideas - Backtesting Adv | No | No | |
Short Locator | No | No | |
Order Liquidity Rebates | No | No |
Research Overview | Robinhood | Vanguard | |
---|---|---|---|
Research - Stocks | Yes | Yes | |
Research - ETFs | Yes | Yes | |
Research - Mutual Funds | No | Yes | |
Research - Pink Sheets / OTCBB | Yes | Yes | |
Research - Bonds | No | Yes | |
Screener - Stocks | No | Yes | |
Screener - ETFs | No | Yes | |
Screener - Mutual Funds | No | Yes | |
Screener - Bonds | No | Yes | |
Misc - Portfolio Allocation | No | Yes |
Stock Research | Robinhood | Vanguard | |
---|---|---|---|
Stock Research - PDF Reports | 0 | 2 | |
Stock Research - Earnings | Yes | Yes | |
Stock Research - Insiders | No | No | |
Stock Research - Social | No | No | |
Stock Research - News | Yes | Yes | |
Stock Research - ESG | No | No | |
Stock Research - SEC Filings | No | No |
ETF Research | Robinhood | Vanguard | |
---|---|---|---|
ETFs - Strategy Overview | Yes | No | |
ETF Fund Facts - Inception Date | Yes | No | |
ETF Fund Facts - Expense Ratio | Yes | No | |
ETF Fund Facts - Net Assets | Yes | No | |
ETF Fund Facts - Total Holdings | Yes | No | |
ETFs - Top 10 Holdings | Yes | No | |
ETFs - Sector Exposure | Yes | No | |
ETFs - Risk Analysis | No | No | |
ETFs - Ratings | No | No | |
ETFs - Morningstar StyleMap | No | No | |
ETFs - PDF Reports | No | No |
Mutual Fund Research | Robinhood | Vanguard | |
---|---|---|---|
Mutual Funds - Strategy Overview | No | Yes | |
Mutual Funds - Performance Chart | No | Yes | |
Mutual Funds - Performance Analysis | No | Yes | |
Mutual Funds - Prospectus | No | Yes | |
Mutual Funds - 3rd Party Ratings | No | No | |
Mutual Funds - Fees Breakdown | No | Yes | |
Mutual Funds - Top 10 Holdings | No | Yes | |
Mutual Funds - Asset Allocation | No | No | |
Mutual Funds - Sector Allocation | No | Yes | |
Mutual Funds - Country Allocation | No | No | |
Mutual Funds - StyleMap | No | Yes |
Options Trading | Robinhood | Vanguard | |
---|---|---|---|
Option Chains - Basic View | Yes | Yes | |
Option Chains - Strategy View | No | No | |
Option Chains - Streaming | Yes | No | |
Option Chains - Total Columns | 17 | 9 | |
Option Chains - Greeks | 5 | 0 | |
Option Chains - Quick Analysis | Yes | No | |
Option Analysis - P&L Charts | Yes | No | |
Option Probability Analysis | No | No | |
Option Probability Analysis Adv | No | No | |
Option Positions - Greeks | Yes | No | |
Option Positions - Greeks Streaming | Yes | No | |
Option Positions - Adv Analysis | No | No | |
Option Positions - Rolling | Yes | No | |
Option Positions - Grouping | Yes | No |
Banking | Robinhood | Vanguard | |
---|---|---|---|
Bank (Member FDIC) | No | No | |
Checking Accounts | No | No | |
Savings Accounts | No | No | |
Credit Cards | No | No | |
Debit Cards | Yes | No | |
Mortgage Loans | No | No |
Customer Service | Robinhood | Vanguard | |
---|---|---|---|
Phone Support (Prospect Customers) | No | Yes | |
Phone Support (Current Customers) | Yes | Yes | |
Email Support | Yes | Yes | |
Live Chat (Prospect Customers) | No | No | |
Live Chat (Current Customers) | Yes | No | |
24/7 Support | Yes | No |
Overall | Robinhood | Vanguard | |
---|---|---|---|
Overall | |||
Commissions & Fees | |||
Investment Options | |||
Platforms & Tools | |||
Mobile Trading Apps | |||
Research | |||
Education | |||
Ease Of Use | |||
Winner | check_circle | ||
Review | Robinhood Review | Vanguard Review |