Stash vs. Robinhood Review 2022. Which Investment Platform Fits Your Needs?

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July 30, 2022
By: ADAM K
Stash offers a more hands-on approach for beginner investors

Overall Rating

Robinhood
Robinhood offers a DIY approach with zero trading commissions.

Overall Rating

Stash and Robinhood: At A Glance

FeatureStashRobinhood
Trading Commissions$0$0
Type of Investment AccountsTaxable Brokerage, IRA, UGMA/UTMATaxable Brokerage
Fractional Share TradingNoYes
CryptocurrenciesNoYes
Options Trading?NoYes
Mobile AppYesYes
Margin TradingNoYes, $5 per month
Reoccurring FeesYes, $1, $3, or $9No
Standout FeatureEarn stock when you make purchases with your debit cardAccess to IPO shares and transfer funds before they settle

Stash vs. Robinhood: Pros & Cons

Stash

PROSCONS
Earn stock when you make purchases with your debit cardNo crypto trading
Brokerage, IRA, and custodial accounts are availableNo options trading
Earn stock when making purchases using your debit cardLimited ability to day trade

Robinhood

PROSCONS
No commissions Only taxable brokerage accounts are available
Access to margin trading No access to in-depth market analysis
Access to funds before they settle No direct access to fixed income products


What Is Stash Invest?

Stash is a personal finance app that aims to simplify investing by allowing customers to begin investing with just $5.

The company charges a flat monthly fee which depends on the type of plan you choose – $1 for beginner accounts, $3 per month for Growth accounts, and $9 per month for Stash+. Stash is built for long-term investing, not day trading. Interestingly, Stash executes all its market transactions during four trading windows during the weekday.

What Is Robinhood?

Founded in 2015, Robinhood is a mobile-first investing app that rose to fame by becoming the first company to offer stock trading with zero commissions. The company is publicly traded on the NASDAQ $HOOD, and has 31 million users.

Stash vs. Robinhood: Services & Features

Both Stash and Robinhood offer taxable brokerage accounts. However, Stash also offers retirement accounts such as Traditional and Roth IRA accounts plus custodial investment accounts for children when you opt-in for its Stash+ account. Robinhood does not provide other investment accounts outside of a taxable brokerage, such as retirement accounts.

Both Stash and Robinhood offer fractional share trading, stock, and ETF trading. It’s important to note Robinhood also provides options trading, crypto investing in bitcoin and six other cryptocurrencies, and margin investing. None of these features are available with Stash.

A unique feature Robinhood offers that is not available on Stash is IPO Investing. Robinhood offers individual investors public access to upcoming IPOs. This means everyday investors like you and me can purchase securities at the IPO price. IPO access was once only available to the ultra-wealthy and institutional investors.

Plus, Robinhood cash management enables you to earn interest on your swept cash with your uninvested cash. You will also get a debit card issued by Sutton Bank. You can use your debit card to buy groceries, pay bills, send checks, etc. Your cash earns a 0.30% annual percentage yield through Robinhood’s network of bank programs; Stash also offers an interest-bearing banking account through its Stash Stock Back card.

Stash Stock Back

An interesting service when using a Stash debit card that sets it apart from Robinhood is its Stock Back card which earns you free stock by using your debit card. You will need to open a bank account through Stash to benefit from this feature.

When you spend using your Stash Stock Back debit card, you earn 0.125% stock on your everyday purchases and up to 5% at certain merchants with bonuses. In general, everyday purchases such as gas, groceries, travel, and dining—will earn you stock. However, it’s important to read the complete list of terms and conditions.

Plus, there are no hidden fees. So, no overdraft fees, no maintenance fees, and no minimum balances in addition to 19,000 fee-free ATMs.

Stash vs. Robinhood: Investment Options

Robinhood allows trading in the following asset classes:

  • U.S. Exchange-Listed Stocks and Exchange Traded Funds (ETFs).
  • Options Contracts for U.S. Exchange-Listed Stocks and ETFs
  • ADRs for over 650 Globally-Listed Companies
  • Crypto such as bitcoin and six other cryptocurrencies
  • Fractional shares

Robinhood does not allow trading in the following asset classes:

  • Mutual Funds
  • Bonds
  • Closed-end funds
  • Foreign-domiciled stock

Furthermore, Robinhood does not have any execution limitations, while Stash only executes trades 4 times per day.

On the other hand, Stash offers more limited investment options:

  • Fractional shares

Stash vs. Robinhood: Fees

Neither Robinhood nor Stash charges any transaction fees. However, both platforms may charge a reoccurring monthly fee depending on your account type.

Stash offers 3 types of accounts with different fee structures:

$1 per month for a Stash beginner account. A beginner account. This type of account is a taxable brokerage. For $1 per month, the Stash beginner account gets you the Stock-Back(more on that later) and $1,000 of life insurance coverage through Avibra (honestly, $1,000 is coverage is basically nothing in terms of life insurance coverage).

Furthermore, with the beginner account, you have access to banking services, including features such as the Stash Stock Back card and the ability to get paid up to 2 days early.

$3 per month for Growth accounts. You get a taxable brokerage account, the stock back card, a Roth or Traditional IRA, and $1,000 of life insurance with a growth account.

$9 for Stash+. With a Stash+ account, you get a traditional brokerage, a Roth or Traditional IRA, an investment account for children, monthly market insights, and $10,000 of life insurance.

Reading the fine print, Stash also notes, “You may incur ancillary fees charged by Stash and/or its custodian that are not included in the monthly Wrap-Fee.”

All Robinhood accounts charge zero commission for trading and no reoccurring or maintenance fees with its Robinhood Instant account. For $5 per month, a more advanced account, Robinhood GOLD, provides users access to margin trading, more significant access to unsettled funds, third-party market research, and Level II market data from Nasdaq.

So if you are looking for the cheapest option, Robinhood is your winner, while it is not possible to open an account with Stash without paying a reoccurring monthly fee.

In addition, Robinhood lists the below types of fees. However, many people aren’t using these services, but I am listing them for posterity purposes.

Cost for 30 days
$1,000 of margin, $5

Margin Accounts over $1,000, 2.5% (subject to change per Robinhood)

Other Fees (Instant and Gold Account):

 ACATs (Outgoing): $75

 Domestic overnight check delivery: $20

 Paper Statements: $5

 Paper Confirms: $2

Stash vs. Robinhood: Mobile Experience

The Robinhood app is straightforward to use and user-friendly. The company was built with a mobile-first experience to make it extremely easy to use and an intuitive user interface.

The company was in hot water for making it too easy for users to trade by having enticing features such as confetti after a trade is executed and free stock. You can’t win, can you? The app has a 4.1 out of 5 stars in the Apple Store.

On the other hand, Stash has 4.7 out of 5 stars in Apple Store. Stash has a mobile app and a web-based user interface; however, it has been noted that the web-based services do not have the same services as the mobile app.

Robinhood

Apple Store Rating 4.1 Stars out of 5★★★★★

Google Play Store Rating: 3.8 out of 5★★★★★

Stash

Apple Store Rating 4.7 Stars out of 5★★★★★

Google Play Store Rating: 4.1 out of 5★★★★★

Who Should Use Robinhood And Stash?

Robinhood is best for

  • DIY investors
  • Active investors
  • Taxable brokerages
  • Margin trading

Stash is best for…

  • Long term, passive investing
  • Retirement investing
  • Guided investment advice

The Bottom Line

If you are looking for a brokerage account where you can seamlessly manage your own investments and buy and sell individual stocks, then Robinhood is for you.

But, if you are new to investing and do not mind paying a few bucks per month for personalized advice, then Stash is better for you.

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