E*TRADE vs Robinhood (2026): Best for Options Trading?
E*TRADE and Robinhood both offer accessible options trading, but E*TRADE emphasizes research, retirement accounts, and Power E*TRADE tools while Robinhood focuses on simple mobile workflows and zero per-contract fees.
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E*Trade is a rock-solid choice for active options traders who want institutional research backing and a tiered pricing model that rewards volume. Power E*Trade is genuinely powerful — it's not on the level of thinkorswim or Tastytrade for pure options analytics, but the Morgan Stanley research integration and managed portfolio options make it a uniquely well-rounded platform.
Robinhood has grown up. Legend desktop, futures, and commission-free options make it a legitimate platform for active traders — not just beginners. It still lacks the deep analytics of Tastytrade, but the gap has narrowed significantly.
Side-by-Side Comparison
How we review: Our team opens real accounts and tests every platform hands-on. We evaluate on commissions, tools, and execution — never influenced by affiliate relationships. Editorial policy →
| Feature | E*Trade | Robinhood |
|---|---|---|
| Our Rating | 4.6 | 4.1 |
| Commissions | $0.65/contract | Free |
| Min. Deposit | $0 | $0 |
| Options Trading | Yes | Yes |
| Free to Close Options | No | No |
| Paper Trading | Yes | — |
| Account Types | Individual, IRA, Roth IRA | Individual, IRA, Roth IRA |
| Regulated | FINRA / SIPC | FINRA / SIPC |
E*Trade — Full Review
E*Trade's journey from early online brokerage pioneer to Morgan Stanley subsidiary has given it a unique position in the market. The Power E*Trade platform is the centerpiece for active traders — it offers a dedicated options trading interface with real-time streaming chains, advanced Greeks analysis, strategy scanners that filter by probability, risk/reward, and expected return, and an intuitive strategy builder for multi-leg positions. The options chain display is highly customizable, letting traders view implied volatility, open interest, volume, and Greeks side by side. Paper trading is available for strategy testing without capital risk, and the education center offers structured learning paths from beginner through advanced options concepts. Morgan Stanley's acquisition in 2020 brought significant enhancements: E*Trade clients now have access to Morgan Stanley research reports, market commentary from the firm's global strategy team, and integrated financial planning tools. The tiered commission structure is a meaningful differentiator — at $0.50 per contract after 30 trades per quarter, active traders pay less than the industry-standard $0.65. Account types span the full range: individual taxable accounts, Traditional and Roth IRAs, trust accounts, and managed portfolios with professional oversight. The managed portfolio offering starts at a $500 minimum for the core tier, making professional management accessible. E*Trade's mobile app mirrors much of Power E*Trade's functionality, including options chain viewing, order entry for multi-leg strategies, and real-time P&L tracking. While the main E*Trade website can feel dated compared to newer fintech platforms, Power E*Trade is modern and responsive. Customer service is available by phone, chat, and in person at Morgan Stanley branches — a notable advantage over online-only brokers.
Robinhood — Full Review
Robinhood's evolution from beginner app to full-featured broker has accelerated. Robinhood Legend — a free professional desktop platform — launched with real-time data, customizable multi-chart layouts, a trading ladder, advanced order types, and a snapshot widget covering volatility, fundamentals, and headlines. Futures trading launched in 2025 via CME Group partnership, covering S&P 500, Nasdaq, gold, oil, and Bitcoin futures with commissions as low as $0.50/contract with Gold. Options trading is commission-free on stock and ETF options. Robinhood Gold (now $5/mo) includes Nasdaq Level 2 data, Morningstar research, and the reduced futures rate. Gold APY on uninvested cash is 3.35% as of March 2026 — down from peak but still competitive. Retirement accounts (IRA and Roth IRA) round out the offering. Despite the 2021 GameStop trading restrictions that damaged the brand, Robinhood remains the most widely-used trading app among Americans under 40.
The Verdict: Which Should You Choose?
Choose E*TRADE if robust options analytics, broad account choices, retirement investing, and established research matter more than paying a per-contract options fee.
Choose Robinhood if zero per-contract options commissions, a streamlined mobile experience, and straightforward trading matter more than deep research or advanced platform tools.