Stockpile vs Robinhood Comparison

Robinhood vs Stockpile, which online broker is best? We compare these leading stock brokers to find out which has better commissions rates, investment minimums, account selections and more.

Both brokers have innovative business models. Robinhood pioneered the idea of free stock trading while Stockpile combines a discount brokerage firm with a stock gift-giving service under one umbrella.

If low trading costs are your top priority, Robinhood simply cannot be beaten. But if you prefer the idea of gifting shares of stock to your loved ones instead of giving the latest toy that will soon be tossed to the garbage, Stockpile is your best bet.

Let’s take a closer look to see which online broker is best for you!

Robinhood vs Stockpile

The Robinhood app is a commission-free trading platform. Literally, you can invest for free; no hidden fees will crop up to surprise you.

Whether you buy or sell stocks, ETFs, or even cryptocurrencies, transactions costs are nil.

So the obvious question is…

How Does Robinhood Make Money?

Most brokers make money by charging clients who buy and sell securities.

But Robinhood takes a different tack altogether. It makes money by selling customer orders to market makers.

Every time you buy or sell, market makers pay Robinhood for customer “order flow”.

Another way Robinhood makes money is by charging clients for its margin trading service, called Robinhood Gold.

While Robinhood honors its promise to deliver free stock trading, it will charge users who wish to borrow funds. So if you plan to leverage your money to “goose” returns, you’ll need to pay a rate that depends on your borrowed amount.

Lastly, Robinhood may earn interest on cash sitting in accounts.

Trade Free at Robinhood

Quick Stockpile Review

Stockpile is a discount brokerage firm that lets traders buy and sell stocks just as easily they would at tastyworks.

The twist in the Stockpile business model is anyone – not only clients – can purchase gift cards of stock.

Both physical and virtual gift cards of stock are available to buy online or even at major stores like Safeway and Target.

The same way you could buy someone a Starbucks gift card you could buy them a gift of Netflix stock or Amazon stock. The main difference is the Stockpile gift could last longer and grow in value over time.

For parents, uncles, and aunts looking to teach their kids, nephews, or nieces about saving, investing, and putting money aside for a rainy day, Stockpile is an innovative solution.

Which Broker Is Best:
Stockpile or Robinhood?

➤ Free Guide: 5 Ways To Automate Your Retirement

Robinhood vs Stockpile:
Commissions

There is no debating who comes out on top in the fees and commissions battle. Zero commissions on stock, ETF, and cryptocurrencies trades can’t be beaten – Robinhood takes home the prize.

Robinhood Commissions

You will pay clearing fees still but those charges are outside of Robinhood’s control.

And if you wish to borrow money to invest, Robinhood Gold is a fee-based service that requires approval to access.

Stockpile Commissions

Commissions costs are rock bottom at Stockpile. It costs just $0.99 per trade to pick up shares of stocks like Alphabet or AutoZone.

You can even buy stocks using a credit card but beware that an extra 3% credit card processing fee is tacked on to commissions charges.

The cost to buy a gift card is $2.99 plus a 3% credit or debit card fee.

So to give a $100 Nike gift card to your little nephew Joey, you would pay $105.99.

A physical gift card that you can hand over in person (versus an electronic gift card you can e-mail) will cost you anywhere between $4.95 and $7.95.

Give Stock Gifts at Stockpile

Types of Investments Comparison

Neither Robinhood nor Stockpile is built with the frills you would enjoy at Schwab or Fidelity. Futures and forex traders will need to look elsewhere.

Unlike Stockpile, which sticks with stocks and ETFs only, Robinhood goes a few steps further by supporting options trading and cryptocurrency trading too.

Its options service is a little bleak compared to industry leaders. For example, Robinhood doesn’t support market orders for options trades.

And you won’t find anywhere near the same number of tools, screeners or scanners as those that top options brokers provide.

Investment Minimums

Neither Robinhood nor Stockpile imposes investment minimums to open accounts.

Account Types

Unlike full-service brokers, Robinhood and Stockpile sacrifice account selection for a simple service offering.

Both offer taxable accounts but Stockpile also offers custodials accounts so children can receive gifts of stock.

Give Stock Gifts at Stockpile

Stockpile vs Robinhood
Overall Winner

Which Trading Platform Is Best:
Robinhood or Stockpile?

For fee-savvy traders, Robinhood and Stockpile are both low cost trading options but nothing beats free and Robinhood takes the prize with zero commissions charges on stocks, ETFs, and cryptocurrencies.

Where Stockpile shines brightest is its support of stock gifting. Clients and non-clients can buy gift cards of stock for loved ones. Stock gifts can be bought virtually online or physically in stores.

Neither broker does a particularly good job of catering to advanced traders, so if screening tools are important to you or you plan to actively trade futures or forex, you’ll need to look elsewhere. However, both offer trading platforms that are easy to use and very intuitive.

If you’re a stock market beginner or simply fee-sensitive, Robinhood is best. If you want the added bells and whistles of gift-giving, Stockpile is the better match.

Zero Commissions Trading Give Stock Gifts