Robinhood is best suited for new investors looking for a simple, commission-free platform to trade stocks, ETFs, options, and cryptocurrencies. BlackRock is more appropriate for sophisticated investors and institutions seeking advanced trading tools, extensive research, and diverse investment options, but requires significant investment capital.
| Attribute | Robinhood | BlackRock |
|---|---|---|
| Investment Options | Stocks, ETFs, options, and cryptocurrencies | Wide array including mutual funds, iShares ETFs, and closed-end funds covering equity, fixed income, multi-asset, alternatives, digital assets, and cash. Investments include stocks, ETFs, and bonds. |
| Account Minimums | No account minimums | Minimum investment of $1 million generally required for a Private Investors account with a personal Portfolio Manager; $250,000 for equity and fixed income accounts serviced by a managed account team. Some funds have higher minimums. |
| Commission Fees | No commission fees for stocks, ETFs, and options (regulatory fees, margin interest, and American depositary receipt fees may apply) | Interactive Brokers (IBKR) offers trading of iShares ETFs. IBKR Pro commissions range from USD 0.0005 to USD 0.0035 per share on ETFs. IBKR Lite offers $0 commissions on US-listed ETFs. |
| Trading Platform | User-friendly platform accessible through web and mobile applications | AI-powered trading platform with portfolio management, risk analytics, and automated investment strategies. Offers real-time market news, charting, and trading signals. |
| Research and Educational Resources | Limited compared to other major brokerages | Various resources, including weekly commentary, global investment outlooks, BlackRock Investment Institute insights, an education center, and tools like LifePath spending and college saving estimators. |
| Customer Support Channels and Responsiveness | Primarily via email, some users report slow response times | Phone (+1 (212) 810-5300, +1 800-882-0052, +1-808-642->4814, +1-877->514>6570), email (contact.us@blackrock.com, investor.relations@blackrock.com) and online support (dedicated client portal at blackrock.com/contact). |
| Security and Regulatory Compliance | Regulated by the SEC, member of SIPC, encryption, two-factor authentication, device verification | Subject to extensive governmental regulation and oversight worldwide. Measures for data privacy, cybersecurity, and protection of personal information, including compliance with GDPR and UK GDPR. |
| Margin Rates | 5.7% to 6.75%, depending on margin balance | Interactive Brokers (IBKR) offers margin loan rates from USD 4.83% to USD 5.83%. Margin trading involves risks. |
| Cash Management Features | Allows users to earn interest on uninvested cash; interest rate is variable and subject to change | BlackRock Cachematrix provides trading and reporting solutions to streamline daily cash management. |
| Fractional Shares Availability | Allows the purchase of fractional shares of stocks and ETFs | Not available |
| Portfolio Analysis Tools | Not available | Offers tools like 360 0 Evaluator and the Expected Return Analyzer. |
| Social Trading Features | Not available | Not available |