Wealthy PotE*TRADE vs Robinhood (2026)
E*TRADE, owned by Morgan Stanley, charges $0.65 per options contract ($0.50 with 30 or more trades a quarter) and offers mutual funds and bonds, plus bank accounts at Morgan Stanley Private Bank. Robinhood charges $0 per contract on stock and ETF options and lends on margin from 5.25%, but sells no mutual funds or individual bonds. Swept cash earns 0.01% APY at E*TRADE under $500,000 and nothing at Robinhood without Gold.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | E*TRADE | Robinhood |
|---|---|---|
| Type | Full-service | App-first |
| Stock/ETF commission | $0 | $0 |
| Options per contract | $0.65/contract ($0.50 with 30+ trades a quarter) | $0 stock/ETF options; index options $0.50 ($0.35 with Gold) |
| 10-contract options trade, open + close | $13 ($312 a year at 2 a month) | $0 ($0 a year at 2 a month) |
| Rate on uninvested cash | 0.01% APY (Bank Deposit Program sweep) | 0% APY (Uninvested cash without Robinhood Gold) |
| Margin rate on $10,000 | 12.45% | 5.25% |
| Transfer out (full account) | $75 | $100 |
| Paid tier | None | Robinhood Gold: $5/mo |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Account types | IRA, Roth, SEP, SIMPLE, custodial, Coverdell | Taxable, joint, IRA, Roth, custodial, trust |
| Platforms | Web, iOS, Android, Desktop | Web, iOS, Android |
Options, cash and margin rows are our arithmetic from each broker's published commissions, default cash rate and margin rates (commissions only, before small regulatory and exchange fees). Rates change with the Federal Reserve's rate.
Key differences
An options trader pays per contract at E*TRADE but not on stock and ETF options at Robinhood. Hypothetically, 200 contracts a quarter cost 200 x $0.65 = $130 at E*TRADE's standard rate, or $100 at $0.50 with 30 or more trades a quarter, against $0 in commissions at Robinhood, where regulatory and clearing fees pass through. Index options cost extra at both: E*TRADE adds an index fee such as $0.54 on SPX, and Robinhood charges $0.50 a contract ($0.35 with Gold) plus the exchange's fee. Both take payment for order flow: $0.43 a contract at E*TRADE and $0.30 to $1.20 at Robinhood in Q2 2026.
A margin borrower sees a wide gap. Hypothetically, carrying a $20,000 debit balance for a year costs $20,000 x 12.45% = $2,490 at E*TRADE's rate for balances from $10,000 to $24,999, and $20,000 x 5.25% = $1,050 at Robinhood, $1,440 less. With Gold, Robinhood also makes the first $1,000 of margin interest-free. Rates move with the Fed, and margin can lose you more than you deposit, so treat this as an illustration, not a forecast.
The account menus differ. E*TRADE offers traditional, Roth, rollover, SEP and SIMPLE IRAs, Coverdell and custodial accounts, more than 6,000 mutual funds by its count, futures at $1.50 a contract and the Core Portfolios robo at 0.30% a year. Robinhood offers taxable, joint, IRA, Roth, custodial and trust accounts and futures at $0.75 a contract per side, plus a 1% IRA contribution match (3% with Gold) that an early removal fee claws back if matched assets leave within 5 years. E*TRADE says phone support runs 24 hours a day; Robinhood offers a callback from 7 AM to 9 PM ET on weekdays.
Where E*TRADE wins
- Options at $0.50 a contract with 30+ trades a quarter
- Futures at $1.50 a contract per side
- Overnight session for eligible securities, Sunday to Thursday
- Excess SIPC from Morgan Stanley: $1.9 million per client for cash
- Bank accounts at Morgan Stanley Private Bank in the same login
Where Robinhood wins
- No commission and no per-contract fee on stock and ETF options
- Margin from 5.25%, with the tier rate applied to the whole balance
- Overnight trading in select stocks and ETFs, 24 hours on weekdays
- IRA match of 1%, or 3% with Gold, on contributions
- Excess-SIPC policy up to $50 million per customer
- No account minimum, no maintenance fee and no inactivity fee
Which should you choose?
Pick E*TRADE if
- You place 30 or more stock, ETF and options trades a quarter and want $0.50 a contract.
- You trade futures and want $1.50 a contract per side.
- You want to trade eligible stocks overnight, Sunday to Thursday.
- You want phone support that E*TRADE says is available 24 hours a day.
Pick Robinhood if
- You trade stock or ETF options and want no per-contract fee on them.
- You borrow on margin and want a rate that starts at 5.25% for every customer, with or without Gold.
- You invest from a phone, in small dollar amounts, with fractional shares from $1.
- You will pay $50 a year for Gold and want the 3.6% cash rate and the 3% IRA contribution match that come with it.
E*TRADE vs Robinhood: FAQ
Is Robinhood cheaper than E*TRADE for options?
On stock and ETF options, Robinhood charges $0 per contract and E*TRADE $0.65, or $0.50 with 30 or more trades a quarter. Opening and closing 10 contracts costs $13 at E*TRADE's standard rate and $0 at Robinhood, before pass-through fees. Since October 15, 2026, Robinhood charges $0.50 a contract to customers it classes as professional options traders. See our options platform guide.
Which pays more on cash, E*TRADE or Robinhood?
E*TRADE's Bank Deposit Program paid 0.01% APY on balances up to $499,999 on October 19, 2026. Robinhood pays nothing without Gold; with Gold ($5 a month or $50 a year), eligible cash in a self-directed taxable account earns 3.6% APY, and IRA cash is not eligible. For idle cash, compare money market funds.
Can I move from Robinhood to E*TRADE for free?
Robinhood charges $100 for each full or partial ACATS transfer, sells fractional shares before the transfer and cannot move crypto by ACATS. Matched IRA assets that leave within 5 years can trigger an early removal fee on the match. If you leave E*TRADE later, it charges $75 for a full outgoing transfer.
Compare these against every option in our online brokers comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both brokers, each checked against the broker's own fee schedule, rate and disclosure pages on October 19, 2026 with every source listed. Some outbound links may be affiliate links. That never affects our comparisons. Nothing here is investment advice.