Wealthy PotCharles Schwab vs Robinhood (2026)
Charles Schwab and Robinhood both charge $0 for online stock and ETF trades, but they price options, margin and cash differently. Robinhood charges $0 per contract on stock and ETF options and lends on margin from 5.25%; Schwab charges $0.65 a contract and adds mutual funds, a Global Account for 12 foreign markets and more than 380 branches, by its own count. Uninvested cash earns 0.01% APY at Schwab and nothing at Robinhood unless you buy a money fund or pay for Gold.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Charles Schwab | Robinhood |
|---|---|---|
| Type | Full-service | App-first |
| Stock/ETF commission | $0 | $0 |
| Options per contract | $0.65/contract | $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 (Uninvested cash in the brokerage account) | 0% APY (Uninvested cash without Robinhood Gold) |
| Margin rate on $10,000 | 12.075% | 5.25% |
| Transfer out (full account) | $50 | $100 |
| Paid tier | None | Robinhood Gold: $5/mo |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Account types | IRA, Roth, SEP, SIMPLE, solo 401(k), custodial, 529 | 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
For someone who trades options, the contract fee is the main gap. Schwab charges $0.65 a contract online, so a hypothetical trader who opens and closes 10 contracts once a month pays 10 x $0.65 x 2 = $13 a month, or $156 a year, before regulatory fees. Robinhood charges $0 commission and $0 per contract on stock and ETF options and passes through regulatory and clearing fees. Index options cost $0.50 a contract at Robinhood ($0.35 with Gold) plus the exchange's index fee, and since October 15, 2026, customers Robinhood classes as professional options traders pay $0.50 a contract. Both brokers take payment for order flow on options.
For a retirement saver, the trade-off is account choice against an IRA match. Robinhood adds 1% to IRA contributions, or 3% with Gold, but matched assets must stay 5 years or an early removal fee claws the match back, and Gold must be kept for a year after the first Gold match or the extra 2% is removed. Robinhood sells no mutual funds or individual bonds and offers no SEP or SIMPLE IRA, solo 401(k) or 529. Schwab lists all four of those account types and thousands of no-transaction-fee Mutual Fund OneSource funds, though some transaction-fee funds cost up to $74.95 per purchase.
Both brokers trade outside regular hours: Schwab offers 24/5 trading in over 1,300 stocks and ETFs, and Robinhood runs an overnight session in select stocks and ETFs, 24 hours on weekdays. Both offer futures, at $2.25 a contract per side at Schwab and $0.75 ($0.50 with Gold) at Robinhood Derivatives, which is not covered by SIPC. Schwab says it has more than 380 branches in 48 states and DC; Robinhood's phone support is a callback. In January 2025 the SEC fined Schwab $10,000,000 over off-channel communications, and ordered Robinhood's two broker-dealers to pay $45 million combined over suspicious-activity reports, customer data and recordkeeping rules.
Where Charles Schwab wins
- Futures at $2.25 a contract, plus options, bonds and funds in one firm
- 24/5 trading in over 1,300 stocks and ETFs
- More than 380 branches in 48 states and DC
- Satisfaction Guarantee refunds eligible fees if asked within 90 days
- Online trading on 12 foreign markets through the Global Account
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 Charles Schwab if
- You want thinkorswim on desktop, web and mobile with 24/5 trading in over 1,300 stocks and ETFs.
- You trade futures and want them in the same firm as your IRA.
- You want a branch nearby: Schwab reported more than 380 in 48 states and DC at the end of 2025.
- You want fractional shares in most US-listed stocks and ETFs from $1.
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.
Charles Schwab vs Robinhood: FAQ
Is Robinhood cheaper than Schwab for options?
On stock and ETF options, Robinhood charges $0 commission and $0 per contract, and Schwab charges $0.65 a contract online, so opening and closing 10 contracts costs $13 at Schwab and $0 at Robinhood before pass-through fees. Index options cost $0.50 a contract at Robinhood ($0.35 with Gold) plus the exchange's index fee. 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, Schwab or Robinhood?
Uninvested Schwab brokerage cash earned 0.01% APY on October 19, 2026; you can buy a money fund instead, such as SWVXX, which had a 3.71% 7-day yield on October 16, 2026. Robinhood pays nothing on cash 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. Our money market fund comparison lists other funds.
Can I move from Robinhood to Schwab for free?
Robinhood charges $100 for each full or partial ACATS transfer out, IRAs included. It sells fractional shares before the transfer, and crypto cannot move by ACATS. If you received an IRA match, moving the assets within 5 years can trigger an early removal fee on the match. Going the other way, Schwab charges $50 for a full transfer out and $0 for a partial one, and its fractional shares do not 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.