Interactive Brokers vs Robinhood for active traders and IRA savers in 2026
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Key takeaways
- Robinhood had 28.6 million funded customers and $384 billion in total platform assets at the end of August 2026.1
- When choosing between Interactive Brokers and Robinhood, start with how many options contracts you trade and how much cash sits idle before you compare features.
- Robinhood is the stronger fit for an options trader or IRA saver who wants $0 contract fees on stock and ETF options and a match, while Interactive Brokers fits a trader who wants to choose between $0 stock trades and per-share pricing with a higher cash rate.
In this article
- Interactive Brokers vs Robinhood at a glance
- What is Interactive Brokers?
- What is Robinhood?
- Interactive Brokers vs Robinhood features compared
- Interactive Brokers vs Robinhood fees for three kinds of investor
- Interactive Brokers vs Robinhood for a Roth IRA
- Should you choose Interactive Brokers or Robinhood?
- Price your own year before you pick a broker
- Frequently asked questions about Interactive Brokers vs Robinhood
Key takeaways
- Robinhood had 28.6 million funded customers and $384 billion in total platform assets at the end of August 2026.1
- When choosing between Interactive Brokers and Robinhood, start with how many options contracts you trade and how much cash sits idle before you compare features.
- Robinhood is the stronger fit for an options trader or IRA saver who wants $0 contract fees on stock and ETF options and a match, while Interactive Brokers fits a trader who wants to choose between $0 stock trades and per-share pricing with a higher cash rate.
Interactive Brokers vs Robinhood comes down to options and cash: Robinhood charges $0 per contract on stock and ETF options and pays up to 3% on IRA contributions, while IBKR charges $0.65 per contract and none of IBKR's pricing pages shows a match.2 Both brokers charge $0 on US stock trades (IBKR through its Lite plan), so the differences are in the other fees each broker charges and the interest and match each pays. This guide compares Interactive Brokers and Robinhood across options, cash interest, stock commissions, and the IRA match.
Interactive Brokers vs Robinhood at a glance
Interactive Brokers and Robinhood both charge $0 on US stock trades at the entry level, so the table starts where they differ. Every figure comes from each broker's own pages, read on October 6, 2026.
| Interactive Brokers | Robinhood | |
|---|---|---|
| US stock commissions | $0 on IBKR Lite; per share on IBKR Pro | $0 |
| Options | $0.65 per contract, $1.00 minimum per order | $0 per contract on stock and ETF options; $0.50 on index options, $0.35 with Gold |
| Interest on idle cash | 0% on the first $10,000; above it, 2.380% on Lite or 3.380% on Pro, scaled down under $100,000 of net asset value | 3.6% APY on eligible brokerage cash with Gold |
| Plans | IBKR Lite or IBKR Pro | Optional Gold, $5 a month |
| IRA match | None shown on IBKR's pricing pages | 1% on contributions, 3% with Gold; 1% on transfers and rollovers |
| Margin, smallest tier | Not confirmed on IBKR's pages | 5.25% up to $50,000 |
| IRA types | Not confirmed on IBKR's pages | Traditional and Roth |
| Full account transfer out | Not confirmed on IBKR's pages | $100 |
What is Interactive Brokers?
Interactive Brokers is a broker that sells two pricing plans: IBKR Lite, with $0 commission on US stock trades, and IBKR Pro, which charges by the share and pays a full point more on idle cash. Options cost $0.65 per contract on both.
Tweed's Interactive Brokers review covers both plans, safety, and the figures IBKR's pages didn't confirm. This page stays on the costs that change when Robinhood is the alternative.
What is Robinhood?
Robinhood is an app-first broker for stocks, ETFs, options, and crypto that charges $0 commissions and sells an optional Gold plan for $5 a month. Gold triples the IRA match to 3% and pays 3.6% APY on eligible brokerage cash.
The Robinhood review covers the app, safety, and Gold in full.
Interactive Brokers vs Robinhood features compared
Each section below opens with the broker that comes out ahead, and it says so when Tweed couldn't confirm IBKR's side.
Options trading
Robinhood wins for an options trader, because it charges $0 per contract on stock and ETF options. IBKR charges $0.65 per contract with a $1.00 minimum on every order. A trader who rolls a few contracts every week pays IBKR something on every order and pays Robinhood only a $0.04 regulatory pass-through. Index options are the exception at Robinhood, at $0.50 a contract, or $0.35 with Gold. Small orders cost the most per contract at IBKR.
Cash interest
Robinhood wins on cash for a Gold member, because Gold pays 3.6% APY on eligible brokerage cash from the first dollar.3 IBKR pays nothing on the first $10,000 of idle cash and 3.380% above it on Pro, scaled by net asset value divided by $100,000 in smaller accounts.4 Without Gold, IBKR Pro's rate is the only confirmed rate of the two. Robinhood's rate on non-Gold cash wasn't checked for this page.
Stock commissions
IBKR Lite and Robinhood tie at $0 on US stock trades, so a buy-and-hold stock investor pays nothing at either. IBKR Pro charges half a cent a share on its Fixed schedule with a $1.00 minimum. Pro makes sense only for a trader who wants Pro's higher cash rate or its volume pricing. Robinhood has no per-share plan.
The IRA match
Robinhood wins for an IRA saver, because it pays 1% on contributions, or 3% with Gold, while IBKR's pricing pages show no match.5 The match has two conditions: matched money must stay 5 years, and Gold must stay active for a year or the extra 2% is taken back. A managed Robinhood IRA earns no match.
Margin rates
Robinhood is the only one of the two whose margin rates Tweed could confirm. Gold members borrow their first $1,000 interest-free. IBKR's margin tiers weren't readable on its pages for this update, so they aren't compared. The Robinhood tiers below applied as of October 6, 2026.
| Margin balance | Robinhood rate |
|---|---|
| Up to $50,000 | 5.25% |
| $50,000 to $100,000 | 5.05% |
| $100,000 to $1 million | 4.75% |
| $1 million to $10 million | 4.5% |
| $10 million to $50 million | 4.45% |
| Above $50 million | 4.20% |
Interactive Brokers vs Robinhood fees for three kinds of investor
Interactive Brokers vs Robinhood fees differ depending on how you invest, so the tables below price a year for three investors. The tables model commissions, matches, cash interest, and plan costs, but not returns. Every rate is assumed to hold for the full year. Most people are a mix of the three.
An options trader
An options trader in stock and ETF options saves the whole contract fee at Robinhood, which comes to $650 a year at 1,000 contracts. IBKR's $1.00 order minimum would push IBKR's costs higher for anyone trading one contract at a time.
| Options contracts a year | Interactive Brokers | Robinhood |
|---|---|---|
| 100 | $65 | $0 |
| 500 | $325 | $0 |
| 1,000 | $650 | $0 |
An investor holding idle cash
A cash holder earns more at Robinhood with Gold at every balance in the table, even after the $60 a year Gold costs. The first two IBKR columns show a cash-only account, which IBKR scales by net asset value over $100,000. The third IBKR column shows an account worth $100,000 or more that gets the full rate.
| Idle cash | IBKR Lite, cash-only | IBKR Pro, cash-only | IBKR Pro, account worth $100,000+ | Robinhood Gold at 3.6%, net of $60 |
|---|---|---|---|---|
| $25,000 | $89.25 | $126.75 | $507 | $840 |
| $50,000 | $476 | $676 | $1,352 | $1,740 |
| $100,000 | $2,142 | $3,042 | $3,042 | $3,540 |
An IRA saver maxing the 2026 limit
An IRA saver under 50 who maxes the account comes out $165 ahead at Robinhood with Gold, before any fee to transfer out. At 50 and older, Gold's match on a maxed account rises to $258.
| Maxing a 2026 IRA, under age 50 | Interactive Brokers | Robinhood, no Gold | Robinhood with Gold |
|---|---|---|---|
| Contribution | $7,500 | $7,500 | $7,500 |
| Match earned | $0 | $75 | $225 |
| Gold cost for the year | $0 | $0 | $60 |
| Net | $0 | $75 | $165 |
Interactive Brokers vs Robinhood for a Roth IRA
Interactive Brokers vs Robinhood for a Roth IRA turns on the match: Robinhood pays you to contribute and lists its account types, while IBKR's pricing pages show no match and don't confirm IBKR's IRA types. Neither broker changes the IRS rules, which cap contributions across all your IRAs combined.
| Roth IRA | Interactive Brokers | Robinhood |
|---|---|---|
| Contribution match | None shown | 1%, or 3% with Gold |
| Transfer and rollover match | None shown | 1%, no cap |
| Holding rule on the match | None | 5 years |
| Options in the IRA | $0.65 per contract; IRA options levels not confirmed | $0 per contract on stock and ETF options, Level 2 |
| Interest on idle IRA cash | 0% on the first $10,000 | Not confirmed for IRA cash |
| IRA types | Not confirmed | Traditional and Roth, up to two of each |
| Transfer out | Not confirmed | $100 |
| Offer as worded, October 6, 2026 | n/a | "3% boost on annual IRA contributions, up to $225 based on the 2026 maximum" with Gold; no end date stated |
The uncapped transfer match is the bigger number for anyone moving an existing IRA. A $100,000 transfer earns $1,000 at Robinhood, and no IBKR page read for this comparison offers that money. Robinhood holds the transfer match for five years and charges an early removal fee if the account leaves sooner. TheRobinhood IRA review covers the match rules, theInteractive Brokers IRA review covers what IBKR's pages confirm for an IRA, and theRoth IRA guide covers who can contribute and how much.
Should you choose Interactive Brokers or Robinhood?
The choice between Interactive Brokers and Robinhood depends on two habits: how many options contracts you trade and how much cash you leave idle. If Charles Schwab is also on your list, Interactive Brokers vs Schwabcompares IBKR with a full-service broker, and our Clear Street review covers another broker that charges by the share.
Choose Interactive Brokers if
- You want to choose between $0 stock trades on Lite and per-share pricing on Pro
- You keep well over $10,000 in cash, in an account worth $100,000 or more, and want a confirmed rate without Gold
- You don't want a 5-year holding rule on any of your money
Choose Robinhood if
- You trade stock and ETF options and want $0 contract fees
- You contribute to an IRA every year and can leave matched money alone for 5 years
- You keep cash idle and are happy to pay $5 a month for Gold's 3.6% APY
Price your own year before you pick a broker
The dollar value of a contract fee or a match depends on how much you trade or contribute. Run the Tweed retirement calculatorwith your real contribution, once with a 3% match and once without, then check the best brokerage accountslist if neither broker fits. If Robinhood fits, you can open a Robinhood account through Tweed's referral link. If Interactive Brokers fits, you can open an Interactive Brokers account through Tweed's referral link.
Frequently asked questions about Interactive Brokers vs Robinhood
Is the Robinhood IRA match taxable?
Yes, the Robinhood IRA match can be taxable, because Robinhood says a match earned in a traditional IRA would generally be taxed when converted to a Roth. Robinhood issues no 1099 for the match itself. Keep your own record of what was matched, and when, before you plan any conversion.
Who is Robinhood's biggest competitor?
Robinhood's biggest competitors are other app-first brokers such as Webull, Public, and SoFi. Interactive Brokers competes for active traders, while Schwab and Fidelity compete for long-term money. Public's 4% with its $20-a-month Reserve plan and Webull's 3.5% with Premium both top Robinhood's 3% with Gold. SoFi pays 1% with no plan required.
Who is better, Webull or Robinhood?
Webull is better than Robinhood for an IRA saver chasing the largest match, 3.5% with Premium vs 3% with Gold. Webull also charges $75 for an outgoing stock transfer, while Robinhood charges $100. Robinhood is better for a saver moving an IRA, because Robinhood's 1% transfer match needs no Gold, while Webull's transfer match needs Premium.
Why can't I pull my money out of Robinhood?
You usually can't pull money out of Robinhood because the cash hasn't settled yet or a recent deposit is still on hold. Settlement periods and deposit holds are standard at most brokers. Money in an IRA follows IRS withdrawal rules as well. Pulling matched money out within five years can cost you the match, so check what's matched first.
What are the top 3 brokerage accounts?
There is no official top 3 brokerage accounts list, because large brokers now tie on stock commissions and differ on other costs. Roundups tend to name Charles Schwab and Fidelity for long-term investors, Robinhood for app-first traders, and Interactive Brokers for active traders. Compare options fees, cash rates, and transfer-out fees, since those are where your costs differ.
Can you transfer from Robinhood to Interactive Brokers?
Yes, you can transfer from Robinhood to Interactive Brokers through a standard account transfer, which the receiving broker starts on your request. Robinhood charges $100 to send a full account out. An IRA moved within five years of a match can trigger Robinhood's early removal fee, so time an IRA transfer around that holding rule.
Is Interactive Brokers trustworthy?
Yes, Interactive Brokers is trustworthy in the way that protects your money at any US broker: SIPC covers securities up to $500,000, including $250,000 for cash claims, if a member firm fails. It doesn't cover market losses. IBKR's own membership and any extra coverage weren't checked for this page, so confirm them on IBKR's account-protection page.
Sources
- https://investors.robinhood.com/news-releases/news-release-details/robinhood-markets-inc-reports-august-2026-operating-data/
- https://www.interactivebrokers.com/en/pricing/commissions-options.php
- https://robinhood.com/us/en/gold/
- https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php
- https://robinhood.com/us/en/support/articles/ira-match-faq/
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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