Robinhood vs Vanguard

• Features and Platforms
• Available Markets
• Typical Spreads and Fees
• Security and Trust
• Pepperstone vs Vantage - Verdict

Robinhood and Vanguard are well-known equity brokers, but which one should you trust for your investment portfolios?

I have conducted an in-depth review of Robinhood vs. Vanguard to determine which broker is the better overall choice and which types of traders will benefit most from each.

Headquarters	United States	United States
Regulators	N/A	ASIC, FCA
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	2013	1975
Execution Type(s)	Market Maker	Market Maker
Minimum Deposit	$0	$0
Trading Platform(s)	Proprietary platform	Web-based
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
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Here is a snapshot of the most notable advantages of Robinhood:

• Share dealing from $1 with an on-ramp for cryptocurrency traders on its mobile app
• A robo-advisory service with its retirement portfolio builder
• A stainless-steel, branded Visa debit card with 3% cashback on all transactions
• A publicly listed US company
• Private banking

Here is a snapshot of the most notable advantages of Vanguard:

• The largest provider of mutual funds and the number two ETF provider
• One of the lowest pricing environments in the passive investment arena
• Investor and shareholder ownership of Vanguard, aligning corporate-client interests
• A robo-advisory team and actively managed funds to complement passive and self-directed investments
• Numerous account options catering to various long-term investment requirements
• Excellent security features

Features and Platforms

MT4
MT5
cTrader
Proprietary Platform
Automated Trading
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
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Available Markets

Cryptocurrencies		N/A
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
ETFs
Options		N/A
Futures
Synthetics
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Robinhood features an asset selection consisting of equities, ETFs, IPOs, options, gold, and select cryptocurrencies, offering reasonable cross-asset diversification. Vanguard is primarily an equity, ETF, mutual fund, and bond broker for long-term investors.

Overall, Vanguard is a better choice for most traders, as it caters to its core market better than Robinhood.

Typical Spreads and Fees

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Robinhood and Vanguard offer commission-free accounts, but which is cheaper?

While both brokers offer commission-free equity and ETF investing, Vanguard has lower costs. The Vanguard ETF expense ratio is up to 75% cheaper than its competition, and the average Vanguard mutual fund expense ratio is 83% less than the industry average.

Account Types

Robinhood offers cash and margin accounts, while Vanguard only features cash accounts. The former has a subscription-based Gold account for a $5 monthly fee, while the latter offers investors six account options, with sub-account choices, depending on the long-term investment goals.

Are there any other noteworthy differences in the account structure between Robinhood and Vanguard?

Here is what stands out the most:

• Vanguard charges annual account/management fees

Minimum Deposit

How Difficult Is Depositing at Robinhood vs. Vanguard?

Depositing at Robinhood and Vanguard is as simple as online banking, but neither offers modern deposit infrastructure, as both rely on bank-related transactions. Robinhood presents its stainless-steel branded Visa debit card with 3% cashback on all transactions, granting it an edge. Still, Vanguard caters to long-term investors, where the absence of modern payment processors is irrelevant.

Minimum Withdrawal

Which Withdrawal Process Is Better: Robinhood or Vanguard?

Neither Robinhood nor Vanguard has a high-quality withdrawal process, but the latter has an edge with faster processing and no withdrawal fees. Robinhood charges a withdrawal fee for withdrawals to external credit/debit cards and bank accounts. It also favors traders using its branded Visa debit card. The low-frequency transactions at Vanguard trump the withdrawal process at Robinhood.

Security and Trust

Country of the Regulator	United Kingdom, United States	Australia, United Kingdom, United States
Name of the Regulator	N/A	ASIC, FCA
Regulatory License Number	165998, 8-69188, 823590	7452, 8-21570, 527839, 227263
Regulatory Tier	1, 1	1, 1, 1
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Which Broker Is More Secure and Trustworthy?

With over $10.4+ trillion under management, client-owned Vanguard is a household name for retirement planning and is well-known for its popular index funds. Robinhood is one of the pioneers of commission-free trading in the US but has a questionable operational track record and supplements income with payment for order flow. Both brokers segregate client deposits from corporate funds and are FINRA members, but Vanguard scores notably higher on trust.

Robinhood versus Vanguard Verdict

Robinhood

Vanguard

Which Forex Broker Is Better?

Robinhood and Vanguard are well-known equity and ETF brokers, and I recommend traders evaluate their products and services to gauge which suits their requirements.

Here is my verdict:

Robinhood offers fractional share dealing, which is ideal for smaller portfolios, but it has a controversial track record. Vanguard is more trustworthy and caters better to its core customer base.

FAQs

Is Vanguard good for beginners?

Vanguard lacks quality educational content but is an excellent choice for beginners using passive strategies via the Vanguard account management and robo-advisory services.

How does Robinhood compare to competing platforms?

It depends on the trader’s preferences, but there are numerous trading platforms that offer superior trading infrastructure, as well as more comprehensive services to Robinhood, and have a better track record.

What is the downside of Vanguard?

Vanguard does not serve traders well and maintains a basic investment platform with limited research capabilities.

What are the main drawbacks of Robinhood?

Robinhood has a questionable track record. In addition, it engages in payment for order flow, which is a potential conflict of interest for the broker.