Robinhood Paper Trading
Robinhood does not offer demo accounts (also known as virtual or paper trading).
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Charles Schwab practice account.
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Overview of Thinkorswim vs Robinhood
Robinhood attracts budget-conscious traders with its free commissions, while Charles Schwab offers robust investment services, including its advanced desktop software Thinkorswim. Let’s explore what each firm provides to traders.
The Cost of Trading at Robinhood
Robinhood boasts the lowest commission schedule in the brokerage industry, offering zero dollar commissions. That means trading stocks, options, cryptocurrencies, and ETFs listed on major American exchanges is completely free.
However, this low-cost approach comes with limited trading technology. For example, Robinhood does not offer a desktop trading platform.
Cost Comparison
Robinhood’s Trading Tools
Robinhood traders manage their trades using the broker’s mobile app, available on both Apple and Android devices. The app’s charting is basic, offering only line graphs without technical studies or comparison tools.
The app also lacks comprehensive security research tools, providing only limited financial information like recent earnings and current P/E ratios. However, it does include news articles, links to company conference calls, and other minimal resources.
Many common features found on other platforms are absent in Robinhood’s offering, such as streaming business news and mobile check deposit, which would add convenience for managing funds.
Robinhood’s app also works with Apple Watch, allowing trades to be placed directly from the watch. The platform supports various order types including limit, market, stop limit, stop loss, and GTC orders. An app for Android watches has also been released.
What’s Missing at Robinhood
While Robinhood promotes its free commission model, it lacks several features offered by other brokers. It does not support mutual fund or bond trading, nor does it offer futures or forex trading. Additionally, customer service is not available 24/7, and there is no toll-free support number.
Promotions
Thinkorswim/Charles Schwab: Get $0 commissions and ACAT fee reimbursement.
Robinhood: Free stock up to $200 and 1% IRA match when you open an account.
Trading on Thinkorswim at Charles Schwab
Comparing Robinhood to Schwab and its Thinkorswim platform highlights significant differences. Thinkorswim offers a sophisticated charting application with over 400 technical studies, various drawing tools, and advanced chart styles like Fibonacci time ratios and regression lines.
Beyond stocks and ETFs, Thinkorswim supports options, futures, and forex trading. It includes powerful screeners for options, ETFs, and stocks, unlike Robinhood, which has none.
Other Trading Tools
Thinkorswim is also available on mobile devices, allowing trading in futures and forex, along with stocks, ETFs, and options. The mobile version includes many of the desktop’s advanced features, such as CNBC streaming.
Additionally, Charles Schwab offers unique integrations like Amazon Alexa, enabling voice-activated stock quotes and market information, and has developed apps for Apple Watch with extensive functionalities.
More Charles Schwab Services
Charles Schwab extends its offerings far beyond technology. It provides a low-cost robo-advisory service and access to human advisors for under 1.00%. Customer service is available 24/7, and Schwab manages a nationwide network of branches. Despite offering stocks at $0 and option contracts at 65 cents, Schwab’s services are comprehensive and cost-effective.
Promotions
Thinkorswim/Charles Schwab: Get $0 commissions and ACAT fee reimbursement.
Robinhood: Free stock up to $200 and 1% IRA match when you open an account.
Robinhood vs Thinkorswim Recap
Robinhood and Charles Schwab cater to different trader needs with distinct pricing strategies. While Robinhood offers the lowest commissions, its trading tools and range of securities are limited compared to Charles Schwab’s comprehensive services.
Updated on 8/7/2024.
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