Is E*TRADE better than Robinhood?

E*TRADE is generally better for active traders and long-term investors who want mutual funds, bonds, full research tools, and powerful trading platforms (Power E*TRADE). Robinhood is better for beginners and mobile-first investors who want simplicity and free options trading.

Does E*TRADE charge for options?

E*TRADE charges $0.65 per options contract ($0.50 for traders with 30+ trades per quarter). Robinhood charges $0 per options contract, making it cheaper for frequent options traders.

Can I buy mutual funds on Robinhood?

No. Robinhood does not offer mutual funds. E*TRADE offers thousands of mutual funds, including no-transaction-fee funds.

Which is safer: E*TRADE or Robinhood?

Both are regulated US brokers registered with FINRA and the SEC, and both are SIPC members offering $500,000 in securities protection ($250,000 for cash). E*TRADE is owned by Morgan Stanley, giving it institutional backing. Robinhood paid a $65 million SEC settlement in 2020 over payment for order flow disclosures.

E*TRADE vs. Robinhood 2026 — Which Is Better for You?

E*TRADE (now part of Morgan Stanley) is one of the oldest and most established online brokers, with powerful trading platforms and a full range of account types. Robinhood disrupted the brokerage industry by making commission-free trading and fractional shares mainstream. Both charge $0 for stock and ETF trades, but their target users differ significantly.

E*TRADE vs. Robinhood: Quick Comparison

Feature	E*TRADE	Robinhood
Commission (stocks/ETFs)	$0	$0
Mutual funds	Yes (thousands)	No
Options	$0.65/contract ($0.50 for active)	$0
Bonds/CDs	Yes	Limited
Fractional shares	Limited (some stocks)	Yes ($1 min, wide range)
Retirement accounts	Full range (IRA, SEP, SIMPLE, etc.)	Roth + Traditional IRA
Robo-advisor	Core Portfolios	None
Banking	No	Cash management (debit card)
Research tools	Extensive (Morgan Stanley)	Basic
Cryptocurrency	No (ETFs only)	Yes (crypto + wallets)
SIPC protection	Yes ($500K)	Yes ($500K)
Monthly fee	$0	$0 (Gold: $5/mo)
Trading platforms	Web, Power E*TRADE	Mobile only

Trading & Commissions

Both charge $0 for US stocks and ETFs.

Key differences:

Options: E*TRADE charges $0.65/contract (or $0.50 for active traders with 30+ trades/quarter). Robinhood charges $0 — a meaningful advantage for frequent options traders.
Mutual funds: E*TRADE offers thousands, including no-transaction-fee funds. Robinhood offers none.
Bonds: E*TRADE provides Treasuries, corporate bonds, and CDs. Robinhood offers limited fixed-income exposure.

Investment Options

E*TRADE

US stocks and ETFs
Mutual funds (thousands including Morgan Stanley funds)
Options (multi-leg strategies, all levels)
Bonds, Treasuries, CDs
International stocks (ADRs)
Robo-advisor: E*TRADE Core Portfolios
Futures (via E*TRADE Futures)

Robinhood

US stocks and ETFs (fractional shares, $1 minimum)
Options ($0/contract)
Cryptocurrency (Bitcoin, Ethereum, and others)
No mutual funds; limited bonds

Power E*TRADE vs. Robinhood

ETRADE’s biggest differentiator is **Power ETRADE** — its professional-grade desktop and mobile trading platform:

Advanced charting with 100+ technical studies
Live options chain scanning
Earnings analysis tools
Strategy builder for complex multi-leg options
Paper trading (practice account)

Robinhood has a clean, streamlined app ideal for beginners — but it lacks the depth of Power E*TRADE for serious traders.

Retirement Accounts

E*TRADE offers:

Traditional IRA, Roth IRA
SEP-IRA, SIMPLE IRA
401(k) rollover IRA
Inherited IRA
Custodial accounts (UGMA/UTMA)

Robinhood offers:

Roth IRA, traditional IRA
3% IRA contribution match for Gold members (as of 2026)

ETRADE’s account variety is significantly broader. For retirement planning, ETRADE provides more flexibility.

Robinhood IRA Match: Is It Worth It?

Robinhood Gold costs $5/month ($60/year). The 3% IRA match (as of 2026) on a maximum $7,000 contribution = $210/year. Net benefit: $150/year for maximum IRA contributors. The match is held for 5 years — withdrawing early forfeits it. For disciplined long-term savers, this is a genuine advantage.

E*TRADE has no IRA contribution match.

Research & Tools

E*TRADE:

Backed by Morgan Stanley research
Stock screeners with 100+ filters
Third-party research from multiple providers
Options analytics and probability tools
Retirement planning calculators

Robinhood:

Basic price charts
Limited analyst ratings
News feed
Simple portfolio overview

For research-driven investors, E*TRADE is in a different league.

Who Should Use E*TRADE?

Active options traders who want sophisticated tools (Power E*TRADE)
Long-term investors who need mutual funds, bonds, and full IRA options
Traders who want the depth of Morgan Stanley research integration
Investors rolling over a 401(k) to an IRA

Who Should Use Robinhood?

Mobile-first beginners who want a simple, clean experience
Investors who want $0 options commissions
Crypto investors who want equities and crypto in one app
IRA contributors who want the 3% Gold contribution match

Internal Links

Bottom Line

E*TRADE wins for active traders who need Power ETRADE’s professional tools, options analytics, and mutual fund access. Robinhood wins for simplicity, $0 options commissions, and crypto access. If you’re a long-term investor deciding between the two, ETRADE’s breadth of accounts and investment options gives it the edge. If you want the lowest-cost options trading and a clean mobile experience, Robinhood is hard to beat.

This article is for educational purposes only. All investments carry risk, including the possible loss of principal.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy