Wealthy PotVanguard vs Robinhood (2026)
Vanguard is built around its own funds: Vanguard mutual funds trade online for $0, and uninvested cash goes to the VMFXX money market settlement fund by default. Robinhood charges $0 per contract on stock and ETF options and lends on margin from 5.25%, but sells no mutual funds and pays no interest on cash without Gold. Both charge $100 to transfer an account out.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Vanguard | Robinhood |
|---|---|---|
| Type | Discount | App-first |
| Stock/ETF commission | $0 | $0 |
| Options per contract | $1.00/contract | $0 stock/ETF options; index options $0.50 ($0.35 with Gold) |
| 10-contract options trade, open + close | $20 ($480 a year at 2 a month) | $0 ($0 a year at 2 a month) |
| Rate on uninvested cash | 3.82% 7-day yield (Vanguard Federal Money Market Fund (VMFXX), the settlement fund) | 0% APY (Uninvested cash without Robinhood Gold) |
| Margin rate on $10,000 | 12.25% | 5.25% |
| Transfer out (full account) | $100 | $100 |
| Paid tier | None | Robinhood Gold: $5/mo |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Account types | Taxable, IRA | Taxable, joint, IRA, Roth, custodial, trust |
| Platforms | Web, iOS, Android | 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 $1 a contract at Vanguard while Qualifying Assets are under $1 million. Hypothetically, opening and closing 10 contracts 4 times a month is 80 contracts, or $80 a month and $960 a year, at Vanguard. At Robinhood the commission and per-contract fee on stock and ETF options are $0, with regulatory and clearing fees passed through. Vanguard waives the first 25 options trades a year from $1 million in Qualifying Assets and the first 100 from $5 million. Vanguard says it receives no payment for order flow; Robinhood's clearing firm was paid $0.30 to $1.20 a contract on single-leg option orders in Q2 2026.
For a fund investor, the menus differ. Vanguard sells its own mutual funds for $0 online and lets you buy Vanguard ETFs and mutual funds by dollar amount from $1, but individual stocks and other companies' ETFs trade in whole shares only. Robinhood sells no mutual funds, so a fund investor there buys ETFs; its fractional shares cover exchange-listed stocks and ETFs from $1. Robinhood adds 1% to IRA contributions, or 3% with Gold, and claws the match back if matched assets leave within 5 years. Vanguard charges $25 a year per account unless you choose e-delivery of statements and documents.
Leaving costs $100 at both, but the rules differ. Vanguard charges $100 for each account you close or fully transfer, waived at $5 million in Qualifying Assets, so a hypothetical investor moving a taxable account and two IRAs pays 3 x $100 = $300. Robinhood charges $100 for each full or partial ACATS transfer, sells fractional shares first and cannot move crypto by ACATS. On the regulatory record, the SEC announced in January 2025 that The Vanguard Group would pay $106.41 million over misleading statements about Target Retirement Fund capital gains distributions, and the same month ordered Robinhood's broker-dealers to pay $45 million combined.
Where Vanguard wins
- Default settlement fund is a money market fund (VMFXX)
- Reports no payment for order flow
- Dollar-based buys of Vanguard ETFs and funds from $1
- Fees fall at $1 million and $5 million in Qualifying Assets
- Vanguard mutual funds trade online for $0
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 Vanguard if
- You buy Vanguard ETFs or mutual funds and want to invest set dollar amounts from $1.
- You want uninvested cash in a money market fund without picking one.
- You want a broker that reports no payment for order flow.
- You have $1 million or more at Vanguard, where options trades, wire and annual fees start to be waived.
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.
Vanguard vs Robinhood: FAQ
Is Robinhood cheaper than Vanguard for options?
On stock and ETF options, Robinhood charges $0 commission and $0 per contract, and Vanguard charges $1 a contract under $1 million in Qualifying Assets. Opening and closing 10 contracts costs $20 at Vanguard and $0 at Robinhood, before pass-through regulatory fees. Index options at Robinhood cost $0.50 a contract ($0.35 with Gold) plus the exchange's index fee. Exercise and assignment are free at Vanguard.
Which pays more on cash, Vanguard or Robinhood?
Vanguard puts uninvested cash in Vanguard Federal Money Market Fund (VMFXX), which had a 3.82% 7-day SEC 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. Cash inside a Robinhood IRA earns nothing. Compare money market funds.
Which charges more to leave, Vanguard or Robinhood?
Both charge $100. Vanguard's fee applies to each account you close or fully transfer, unless you have $5 million in Qualifying Assets or an advisory account. Robinhood's applies to every full or partial ACATS transfer, IRAs included, and moving matched IRA assets within 5 years can trigger an early removal fee on the match. You start either transfer at the receiving broker.
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.