Compare Robinhood and Tastytrade on fees, DRIP, fractional shares and research for dividend investing.
Updated August 26, 2026
Robinhood and Tastytrade (formerly Tastyworks, founded by the creators of thinkorswim) both charge $0 for stock and ETF trades and both offer free dividend reinvestment — but they attract different investors. Robinhood (4.2/5) is the mobile-first app for beginners: $1 fractional shares, a 1% IRA match (3% with Gold), crypto, and 24-hour trading. Tastytrade (4.4/5) is an options-first platform with pricing built for income strategies: $1 per contract to open, $0 to close, capped at $10 per leg.
For a plain buy-and-hold dividend portfolio, the two are closer than they look: $0 commissions, free DRIP, fractional shares ($1 minimum at Robinhood, $5 at Tastytrade with a $0.10 clearing fee), and thin dividend research at both — Robinhood doesn’t even show ex-dividend dates. The gap opens the moment you sell covered calls on your dividend stocks. Tastytrade’s capped, close-for-free pricing and its options analysis tools are purpose-built for that; Robinhood charges $0.50 per contract each way ($0.35 with Gold) and offers far less analysis.
The app that brought commission-free trading to the masses, with a sleek mobile experience and $1 fractional shares.
The options-focused platform with low contract fees, excellent education, and DRIP support—ideal for dividend investors using covered call strategies.
| Feature | Robinhood | Tastytrade |
|---|---|---|
| Our Rating | 4.2/5 | 4.4/5 |
| Trading Commissions | $0 | $0 |
| Account Minimum | $0 | N/A |
| Fractional Shares | $1 minimum | Yes ($5 min) |
| DRIP | Free | Free |
| Research Tools | Basic | Basic |
| Best For | Beginners & Young Investors | Covered Call Writers |
Want the full breakdown of fees, DRIP, and research tools? Read our Robinhood review and Tastytrade review.
Tastytrade if you generate income by selling covered calls or cash-secured puts around dividend positions — the $10-per-leg cap and $0 closing commissions add up fast, and the education is the best in the business. Robinhood if you just want to buy dividend stocks and let DRIP compound, especially in an IRA where the 1–3% match is free money Tastytrade doesn’t offer. Two catches: Tastytrade pays just 0.01% on idle cash and has a steep learning curve, while Robinhood charges $100 to transfer your account out and its dividend data is basic.
For buy-and-hold dividend investing, Robinhood — $0 trades, free DRIP, $1 fractional shares, and a 1–3% IRA match. For dividend investors who also sell covered calls, Tastytrade — options cost $1 to open and $0 to close, capped at $10 per leg, with tools built for options income. Both offer free dividend reinvestment.
Yes. Tastyworks rebranded to Tastytrade; the brokerage, pricing, and platform are the same. Old “Tastyworks vs Robinhood” comparisons apply — it’s still the options-focused broker founded by the team behind thinkorswim.
Stock and ETF trades are $0 at both. Options cost $0.50 per contract on Robinhood ($0.35 with the $5/month Gold plan) versus $1 to open and $0 to close at Tastytrade, capped at $10 per leg. Tastytrade charges $75 for full account transfers out and $60 to close an IRA; Robinhood charges $100 for transfers out. Neither has account minimums, maintenance fees, or inactivity fees.
Yes. Both reinvest dividends for free with fractional share support. Robinhood lets you buy fractional shares from $1 in real time and toggle reinvestment per holding. Tastytrade supports fractional purchases from $5 (plus a $0.10 clearing fee) and fractional DRIP, though it has a smaller list of eligible stocks.
Not sure these are the right fit? Explore more comparisons.
Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.