Robinhood
Interactive Brokers
Robinhood and Interactive Brokers represent opposite ends of the US brokerage spectrum.
Category Breakdown
Margin Rates
🏆 Interactive Brokers5.33%+ vs 5.75%-12%
Portfolio Margin
🏆 Interactive BrokersUp to ~6.7x leverage for qualifying accounts
Global Markets
🏆 Interactive Brokers150+ markets vs US only
Platform Power
🏆 Interactive BrokersProfessional-grade tools
Ease of Use
🏆 RobinhoodMuch simpler for beginners
Mobile App
🏆 RobinhoodBetter mobile experience
Fractional Shares
🏆 RobinhoodBetter fractional share support
Product Range
🏆 Interactive BrokersStocks, options, futures, forex, bonds, funds
Detailed Analysis
💰 Fees
IBKR has dramatically lower margin rates (5.33%+ vs 5.75% Gold / 12% standard). For large balances, IBKR is significantly cheaper.
⚡ Leverage
Both offer Reg T (2x) for standard accounts. IBKR offers Portfolio Margin (up to ~6.7x) for accounts over $110K. Robinhood has no equivalent.
🖥️ Platform & Features
IBKR's Trader Workstation is extremely powerful but complex. Robinhood's app is beautiful and simple but lacks advanced features.
🔒 Security
Both are SEC/FINRA regulated and SIPC insured. IBKR has $400B+ in client equity and is publicly traded.
🎓 For Beginners
Robinhood wins hands-down for beginners. IBKR has a steep learning curve.
🏆 Our Verdict
Interactive Brokers is objectively superior for margin trading with lower rates, more products, and professional tools. Robinhood is adequate for basic stock margin trading and wins on simplicity for complete beginners.