Robinhood is suitable for active traders who prioritize commission-free trading and a user-friendly mobile app, especially those interested in cryptocurrency. Wealthfront is better for investors seeking automated investing, comprehensive financial planning tools, and robust customer support.
| Attribute | Robinhood | Wealthfront |
|---|---|---|
| Commission Fees | $0 commission for stocks, ETFs, options, and cryptocurrency trades. Regulatory fees apply (Trading Activity Fee and Regulatory Transaction Fee). Options: No per-contract fees. Futures: $0.50 - $0.75 per contract. | Wealthfront does not charge commissions for its stock investing account, automated investment accounts, or cash accounts. |
| Account Minimums | $0 account minimum. Margin trading requires a $2,000 minimum account balance. | $500 for automated investment accounts; $1 for cash accounts and the stock investing account; S&P 500 Direct Portfolio: $5,000; US Direct Indexing: $100,000; Smart Beta: $500,000. |
| Investment Options (Stocks, ETFs, Crypto) | Stocks, ETFs, Options, Cryptocurrency, American Depositary Receipts (ADRs). Not Available: Mutual funds, bonds (except bond ETFs). | Stocks and ETFs (through self-directed trading account); Automated investment portfolios: ETFs from 12 asset classes, including cryptocurrency trusts (Bitcoin, Ethereum); Classic portfolios with diversified, low-fee index funds; Socially Responsible portfolio, focusing on sustainability, diversity, and equity; Direct Indexing, which includes individual stocks; Automated bond portfolio. |
| Automated Investing/Robo-advisor | Robinhood Strategies is a wealth management service with a 0.25% annual management fee (capped at $250 for Gold members). It invests in a mix of ETFs and individual stocks (for balances $500+). Portfolios are tailored based on risk tolerance and time horizon. Combines algorithmic portfolio management with human oversight. | Wealthfront uses algorithms to construct and manage diversified portfolios. Portfolios are created by an investment management team, including Dr. Burton Malkiel, using modern portfolio theory. Automatic rebalancing is performed when an asset class moves away from its target allocation. |
| Financial Planning Tools | Future projections tool within Robinhood Strategies. Insights within the app to understand market fluctuations. Robinhood Banking offers estate planning and professional tax advice. | Free Path tool (mobile and desktop) helps plan for buying a house, retirement, college, and general savings goals. Self-Driving Money tool automates moving excess cash into investment accounts, IRAs, or 529 college savings accounts. Users can link external accounts for a holistic financial view. |
| Educational Resources | Educational resources are available on the website, but the app lacks a dedicated education section. Competitors offer more comprehensive in-app explanations. Gold members get access to research reports from Morningstar. | Help center with FAQs and a search bar; Blog; Financial Health guides. |
| Mobile App Usability | Extremely user-friendly and intuitive, making trading effortless. | Highly ranked on both Android and iOS platforms. Good user experience, approximating the functionality of the desktop version. Users can link accounts, use financial planning software and get financial planning insights. |
| Customer Support Quality | Generally considered poor, with limited access and slow responses. Primarily email support, with limited phone support. | Help center with FAQs; Online form; Phone support on weekdays; Email support, with responses typically within 1-2 business days; Live chat support during business hours. |
| Account Security Features | Two-factor authentication (2FA), encryption, biometric login, device verification, strong password requirements, and regular security audits. SIPC insurance (up to $500,000 for securities, $250,000 for cash). Cash balances are swept into FDIC-insured banks (up to $250,000). Stocks and ETFs are insured up to $500,000 through SIPC. | Two-factor authentication; Wealthfront Cash accounts protected by FDIC insurance up to $8 million through partner banks (and up to $16 million for joint accounts); Wealthfront Investment accounts protected with SIPC insurance up to $500,000 (covering up to $250,000 in cash); Active fraud monitoring; Debit card locking. |
| Portfolio Performance | Portfolios are actively managed by a team of human experts. | Wealthfront's investment portfolios are created using modern portfolio theory (MPT) to match an investor's risk appetite. Historical performance is available on the platform. |
| Tax-Loss Harvesting | Yes, Robinhood Strategies offers tax-loss harvesting in taxable accounts. At the end of the year, they total your gains and losses so you can choose to harvest any losses. | Tax-loss harvesting is available for all taxable accounts. Wealthfront looks for ETFs that tend to move in tandem but track different indices, swapping them out to realize losses that offset gains. Direct indexing is offered for taxable accounts with balances of $100,000 or more, allowing for stock-level tax-loss harvesting. |
| Cash Management Features | Offers a competitive APY (Annual Percentage Yield) on uninvested cash. Robinhood Gold members may receive a higher APY. | Interest-bearing account that pays 4.00% APY (as of December 2024), which fluctuates based on the federal funds rate. In-network fee-free ATM transactions; Up to $8 million FDIC insurance through partner banks (and up to $16 million for joint accounts); Bill pay and app-based mobile check deposits; Unlimited free transfers; No minimum balance. |