Interactive Brokers vs Robinhood — Head-to-Head Custody Comparison

An independent, data-driven comparison of Interactive Brokers and Robinhood across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Interactive Brokers scores 6.9 vs Robinhood's 6.9. Interactive Brokers leads in 3 of 8 categories.

Interactive Brokers is better suited for Professional traders, Multi-asset investors, RIAs adding crypto. Robinhood is better suited for Stock traders adding crypto, Fee-conscious traders, Beginners.

6.9

FairCustody Score

Interactive Brokers

6.9

FairCustody Score

Robinhood

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Interactive Brokers	Robinhood	Winner
Security	20%	6.5	7.0	Robinhood
Insurance	15%	5.0	6.0	Robinhood
Regulatory	15%	9.0	8.5	Interactive Brokers
Fee Transparency	10%	7.0	6.0	Interactive Brokers
Track Record	15%	9.5	7.0	Interactive Brokers
Withdrawal Flexibility	10%	5.0	7.5	Robinhood
Reporting & Audit	10%	8.0	8.0	Tie
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	6.9	6.9	Tie

Visual

Score Radar

Visual overlay of Interactive Brokers and Robinhood across all categories.

Interactive BrokersRobinhood

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (6.5 vs 7.0)

Interactive Brokers uses Paxos custody partnership key management with Via Paxos in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major incidents in 45+ year history.

Robinhood uses Exchange-managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 data breach (customer info, not funds). Crypto wallets added later..

Insurance (5.0 vs 6.0)

Interactive Brokers offers SIPC up to $500K for securities (NOT crypto) via SIPC + excess. World-class securities insurance. Crypto is NOT insured.

Robinhood offers SIPC for securities (NOT crypto). Crime insurance for crypto. via SIPC (securities) + crime insurance. SIPC coverage for stocks. Crypto has separate crime insurance.

Regulatory (9.0 vs 8.5)

Interactive Brokers holds SEC registered, FINRA member, SIPC member, Global regulatory licenses and is a qualified custodian operating in United States / Global. One of the most regulated brokerages globally.

Robinhood holds NASDAQ listed (HOOD), SEC/FINRA registered (securities), State money transmitter licenses (crypto) and is a qualified custodian operating in United States. Publicly traded. SEC registered for securities. State-licensed for crypto.

Fee Transparency (7.0 vs 6.0)

Interactive Brokers charges None in annual custody fees with 0.12-0.18% tiered per transaction. Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw.

Robinhood charges None in annual custody fees with 0% commission (spread-based ~0.4%) per transaction. Commission-free trading. Revenue from spread and payment for order flow.

Track Record (9.5 vs 7.0)

Interactive Brokers was founded in 1978 and is headquartered in Greenwich, CT. AUM: $400B+ client equity. Incident history: No major incidents in 45+ year history.

Robinhood was founded in 2013 and is headquartered in Menlo Park, CA. AUM: $130B+ in assets under custody (all assets). Incident history: 2021 data breach (customer info, not funds). Crypto wallets added later..

Withdrawal Flexibility (5.0 vs 7.5)

Interactive Brokers withdrawal fees: Not available (no crypto transfers out). Minimum account: No minimum for crypto. Supported assets: Bitcoin, Ethereum, Limited crypto selection.

Robinhood withdrawal fees: Network fees. Minimum account: $1 minimum. Supported assets: Bitcoin, Ethereum, 20+ cryptocurrencies.

Reporting & Audit (8.0 vs 8.0)

Interactive Brokers: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Robinhood: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Counterparty Diversification (2.0 vs 2.0)

Interactive Brokers is a exchange custody provider. Key management: Exchange-managed custody via Paxos partnership..

Robinhood is a exchange custody provider. Key management: Exchange-managed custody with option to withdraw crypto to external wallets..

Fees

Fee Comparison

Side-by-side fee breakdown for Interactive Brokers and Robinhood.

Fee Type	Interactive Brokers	Robinhood
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.12-0.18% tiered	0% commission (spread-based ~0.4%)
Withdrawal	Not available (no crypto transfers out)	Network fees

Interactive Brokers: Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw.

Robinhood: Commission-free trading. Revenue from spread and payment for order flow.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Interactive Brokers	Robinhood
23M+ funded accounts	✗	✓
45+ year track record	✓	✗
Bitstamp acquisition	✗	✓
Clean mobile interface	✗	✓
Commission-free trading	✗	✓
Crypto alongside stocks	✗	✓
Crypto alongside stocks/bonds/options	✓	✗
Crypto wallets with withdrawals	✗	✓
Global presence	✓	✗
Institutional-grade execution	✓	✗
Lowest crypto trading fees	✓	✗
Professional trading tools	✓	✗

Recommendation

Who Should Choose Which?

Interactive Brokers is better if you…

✓Are a professional traders
✓Are a multi-asset investors
✓Are a rias adding crypto
✓Are a institutional traders
✓Want: 45+ year track record — most established broker
✓Want: Lowest crypto trading fees (0.12-0.18%)
✓Want: Crypto alongside stocks/bonds/options

Robinhood is better if you…

✓Are a stock traders adding crypto
✓Are a fee-conscious traders
✓Are a beginners
✓Are a us retail investors
✓Want: Commission-free crypto trading
✓Want: Crypto alongside stock portfolio
✓Want: Publicly traded — transparent

FAQ

Frequently Asked Questions

Is Interactive Brokers or Robinhood better for Bitcoin custody?

Interactive Brokers scores 6.9 vs 6.9 in our weighted Custody Score. Interactive Brokers leads in 3 of 8 scoring categories. However, the best choice depends on your specific needs: Interactive Brokers is best for Professional traders and Multi-asset investors, while Robinhood suits Stock traders adding crypto and Fee-conscious traders.

What is the difference between Interactive Brokers and Robinhood?

Interactive Brokers is a exchange custody provider, while Robinhood is a exchange custody provider. Interactive Brokers excels in Track Record, whereas Robinhood is strongest in Regulatory.

How do Interactive Brokers and Robinhood fees compare?

Interactive Brokers charges None annual custody fees with 0.12-0.18% tiered transaction fees. Robinhood charges None annual custody fees with 0% commission (spread-based ~0.4%) transaction fees.

Which is more secure, Interactive Brokers or Robinhood?

Interactive Brokers scores 6.5/10 for security while Robinhood scores 7.0/10. Interactive Brokers uses Paxos custody partnership key management, and Robinhood uses Exchange-managed custody.