Robinhood vs. Vanguard

Q: What is the difference between using Robinhood or Vanguard?

Think of Vanguard as your golden retriever: reliable and been around forever. Robinhood, on the other hand, is your newest doodle mix: easy care, all the rage, and created with pet owners in mind.
 

Similarities:

💵 Fees: Top features we care about? Neither charge anything for trading your standard stocks and ETFs (when you buy low or sell high) and neither require account minimums (e.g. you don’t have to plop down $5K to get started).

Differences:

⚖️  Type of Account: Main difference is that Robinhood does NOT offer individual retirement accounts (IRAs). Vanguard, on the other hand, does. So if your employer doesn’t open a retirement account for you (401K), you need a Vanguard or Fidelity (or trusty big platform) to get after it!

🎁 Product Offerings: “Product” here means types of investments (aka. assets) offered. Robinhood has a smaller offering than Vanguard does, which might be good enough for most retail investors (you and us = retail; meaning, not pros). What Vanguard offers that Robinhood doesn’t include individual bonds and thousands of ETFs (vs. about 500 ETFs on Robinhood).

🍹 Ease and Fun: Robinhood’s signup takes less time than ordering your coffee. It guides you through setting up an account and even helps you pick your first stock instantly. Vanguard has more screens and disclosures that you have to read through and e-sign. Additionally, there’s something called a “waiting period” of a few days after you open your account to start trading.

Regardless of which platform you go with, getting your feet wet in the investing world is the main goal. Same goes for if you are deciding which dog is for you, end goal: have a dog who emotionally supports you through pandemics. 🐶