Robinhood vs Interactive Brokers

Robinhood vs Interactive Brokers Comparison Table 2024
Robinhood Interactive Brokers
0.9

Robinhood is #35 in our broker rankings.

We do not recommend trading with Robinhood. Their business practices have harmed traders and their "free" trading offer has been criticized for actually costing their traders millions of dollars.
4.3

Interactive Brokers is #1 in our CFD broker rankings.

United States Flag Traders from US accepted
United States Flag Traders from US accepted

Robinhood is a stock broker and financial services firm based in California. The broker offers commission-free stocks, cryptos and ETFs, plus other products such as cash cards and retirement accounts. Despite its robust regulation, Robinhood has been involved in numerous scandals and security breaches since 2020. We urge investors to exercise caution.

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

Customer Reviews
1
4
Comment by Reviewer
"Robinhood is aimed at traders looking for stocks and crypto investing opportunities with additional perks. However, the brokerage's recent business practices mean the brand isn't a good option if you want a reliable and trustworthy broker." "Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Pros
  • Crypto trading available for US clients, with no commission fees and a low minimum deposit of $1
  • Intuitive mobile trading app with 24/7 live support and in-app stock market news
  • Robinhood's 'Snacks' newsletter offers bite-sized financial news updates suitable for beginners
  • Interesting podcast hosted by the CEO and co-founder, covering topics such as blockchain and financial empowerment
  • Robinhood Cash Card offers weekly bonuses invested into stocks, as well as cashback on popular brands
  • Receive NFTs on the Polygon and Ethereum network and connect to decentralized applications via your Robinhood wallet
  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders.; plus, you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
Cons
  • Limited research and education tools compared to top-rated brokers like IG
  • Previous lawsuits and negative press surrounding the firm's controversial business practices
  • Despite the actual app showing quote data in real-time, data may be delayed by up to 20 minutes
  • Robinhood does not support advanced order types or options trades, while limit orders are collared up to 5%
  • Concerning history of security breaches
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
Instruments
Stocks, ETFs, ADRs, Options, Crypto Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
Demo Account
No Yes
Minimum Deposit
$0 $0
Trading Platforms
  • Robinhood Platform
  • Trader Workstation (TWS)
  • Desktop
  • GlobalTrader
  • Mobile
  • Client Portal
  • AlgoTrader
  • OmniTrader
  • eSignal
  • TradingCentral
Payment Methods
Minimum Trade
$1 $100
Regulator
SEC, FCA FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
Margin Trading
No Yes
Margin Rate
2.5% 1.55 - 2.59%
STP Account
No Yes
ECN Account
No No
DMA Account
No Yes
MAM Account
No Yes
PAMM Account
No No
LAMM Account
No No
Demat Account
No No
AI / Machine Learning
No Yes
Robo Advisor
No Yes
Negative Balance Protection
No Yes
Market Maker
No No
P2P Trading
No No
Spot Trading
No Yes
Mobile Apps
iOS & Android iOS & Android
App Review

The IBKR Mobile app, available on both iOS and Android devices, makes your phone a powerful gateway to your IBKR accounts, offering you the freedom to keep an eye on portfolios, initiate trades, and dive into real-time quotes and charts, all while managing your account activities on the fly. This app stands out for its intuitive design, making it especially welcoming for those just starting their trading journey, providing a smoother and more accessible experience than the more complex TWS platform.

Android App Rating
4.6
iOS App Rating
3.4
Auto Trading
No Capitalise.ai & TWS API
Copy Trading
No No
Social Trading
No No
VPS Hosting
No No
Tournaments
No No
Demo Competitions
No No
Ethical Investing
No Yes
Custodial Account
No No
Guaranteed Stop Loss
No No
Inactivity Fee
$0 $0
Islamic Account
No No
Account Currencies
  • USD
  • USD
  • EUR
  • GBP
  • CAD
  • AUD
  • INR
  • JPY
  • SEK
  • NOK
  • DKK
  • CHF
  • HUF
Stock Exchanges
Commodities
CFD Trading
CFD trading not offered Over 8,000 CFDs are offered on a vast array of instruments, encompassing stocks, indices, forex, and commodities. Moreover, the TWS platform lends itself to seasoned day traders, offering a comprehensive selection of over 100 order types and algorithms, alongside premium market data sourced from reputable sources such as Reuters and Dow Jones.
Leverage
1:50
FTSE Spread
N/A 0.005% (£1 Min)
GBPUSD Spread
N/A 0.08-0.20 bps x trade value
Oil Spread
0.25-0.85
Stocks Spread
0.003
Forex Trading
Forex trading not offered IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
GBPUSD Spread
0.08-0.20 bps x trade value
EURUSD Spread
0.08-0.20 bps x trade value
EURGBP Spread
0.08-0.20 bps x trade value
Assets
100+
Cryptocurrency
Access 18 crypto assets through the Robinhood app with no commission fees, including access to Bitcoin. On the negative side, the selection is not as wide as other brands and security is weak. IBKR lets you purchase and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin at competitive commission rates and without needing a crypto wallet. Additionally, there is a range of other diverse assets to explore, such as crypto indices like the NYSE Bitcoin Index, as well as futures contracts like the BAKKT Bitcoin Futures.
Spread
0% 0.12%-0.18%
Coins
  • BTC
  • ETH
  • BCH
  • LTC
  • SOL
  • DOGE
  • BTG
  • OMG
  • XMR
  • QTUM
  • DASH
  • XRP
  • XLM
  • ZEC
  • NEO
  • LSK
  • BTC
  • LTC
  • ETH
  • XRP
Crypto Lending
No No
Crypto Mining
No No
Crypto Staking
No No
Auto Market Maker
No No
More Comparisons
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Interactive Brokers
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