Charles Schwab vs. Robinhood: 2025 Comparison

In some ways, Charles Schwab and Robinhood are similar: Both brokers will allow you to trade stocks and exchange-traded funds with no commission, and both offer fractional shares so investors can buy slices of public companies with small amounts of money.

But where they differ is in the level of service provided. Charles Schwab is a well-rounded broker with offerings for every type of investor. Retirement savers will find a large selection of no-transaction-fee mutual funds, active traders will get access to powerful trading platforms and advanced trading strategies like futures, and those who want to be completely hands off can turn to Schwab's financial advisor services. Schwab also took on the popular thinkorswim trading platform as part of its acquisition of TD Ameritrade.

Robinhood, on the other hand, caters more to active investors who want to trade stocks, options, ETFs and cryptocurrency through a mobile app. But the company did roll out IRAs several years ago, and it offers a lucrative 1% match (3% for Robinhood Gold members). This feature and the broker's movement toward providing a more well-rounded offering and better customer service earned it a place on our list of the best IRAs this year. It also launched a more robust active trading platform in 2024.