TradeStation vs. Robinhood: Which is Right for You?
Although the company said it plans to roll out other account types in the future, Robinhood currently only offers one type of account: standard (taxable) individual brokerage accounts. If you want to open a joint account with another person, or open a UGMA or UTMA deposit account for a minor, you cannot do so through Robinhood. And there are no retirement accounts on the Robinhood platform.
On the other hand, TradeStation supports traditional and Roth IRAs, as well as SEP IRA and SIMPLE IRA accounts for eligible independent clients. It offers the possibility of opening a brokerage account jointly with up to three owners. And you can open a securities account for a minor.
LEARN MORE: Best IRA Accounts
Both offer margin accounts (the ability to invest with borrowed money). Robinhood offers margin investing to its Robinhood Gold members who pay a monthly membership fee of $5. TradeStation allows all of its clients to apply for margin privileges, although it should be noted that Robinhood’s margin interest rate is many inferior.
It is also important to note that no broker is owned or affiliated with a bank, so there is no ability to open checking, savings or credit card accounts through either. ‘other. However, Robinhood offers an interest-bearing “cash management” account for investors’ uninvested funds.
If you’re looking for a more hands-on approach, be aware that neither TradeStation nor Robinhood offer robo-advisor services.
READ MORE: Best Robo-advisors