eToro vs. Robinhood: Comparing the Two Crypto Exchanges.
The market for online trading and investing is rapidly growing. There are numerous online brokers and platforms designed to bring in a lot of young traders and investors to get their journey started. Given the option between eToro and Robinhood, which is the right choice for you? We’ll dig deeper and compare both platforms and their features, pros, and cons to help you make your own choice.
Table of Contents.
What Is eToro?
eToro is an online platform for trading stocks and cryptocurrencies. It was launched in 2007 with the prime focus to make online trading accessible to everyone.
What gives eToro an edge over other competitors in the market is its copy trading and social-media concept, which allows its registered users to connect with other successful traders and follow the trends they are following.
Experience in trading is not a prerequisite for being successful on eToro. All you need is an account, and you’re set to trade. It is not sophisticated, and because it is simple and accessible, eToro has managed to gain over 23 million registered users.
What Is Robinhood?
After entering the scene in 2016, Robinhood promised to transform and revolutionize the trading market and provide investors with exceptional tools to learn and master the art of trading. It was built by two Stanford graduates. This platform mainly focuses on helping traders and investors buy and sell stocks. One of its attractive selling points was instigating zero commission charges on stocks and cryptocurrency trading.
The fact that it doesn’t charge commissions for cryptocurrency trading is its leading competitive edge. Despite growing competition, Robinhood has built a strong brand and niche market among young, tech-savvy investors, thanks to a simple design and user experience that concentrates on the fundamentals.
The Difference Between eToro and Robinhood.
Both platforms provide services for traders and investors. They’re both popular online platforms designed for trading. However, in terms of features, eToro is much better compared to Robinhood. eToro has a better web and mobile platform, which helps its users customize and design their profiles to follow successful traders on the platform. This feature is also known as best copy trade cryptocurrency trading. This social media aspect sets eToro apart and makes it unique.
Comparison of Features.
eToro has a wide variety of features which gives the platform an edge over other trading platforms.
The main features of eToro, which attract a lot of traders online, include:
Employs zero commission for trading and investing. Also, it provides complimentary insurance It has the edge over other platforms because of its interface, which allows its users to communicate and stay connected with over 23 million registered users in over 140 countries It provides a copy trading feature that allows its users to replicate portfolios of other successful traders. Which is considered a unique feature of eToro eToro is a multi-asset platform that focuses on providing users access to stock and cryptocurrencies. It is regulated well and maintains high standards.
eToro has some additional features, which include:
The process of getting started is straightforward. Users get to use a demo account when they start The interface is easy to navigate and can be customized while copy trading Helps users get to know other successful traders online, thereby building a stronger community eToro is easily accessible and has a web platform and a mobile app specifically designed to ensure the user experience is convenient and simple It offers a good amount of cryptocurrencies to trade It is regulated by renowned financial institutions, which indicates that eToro is safe and prioritizes protecting the assets of their registered users.
Compared to eToro, Robinhood is slightly behind in communication and security features.
The main features of Robinhood include:
Requires $0 to open an account and $200 for a premium gold account Zero commission trading Investors can trade in over 5,000 different markets Provides trading of stocks and cryptocurrencies Regulated by FINRA and the SEC in the U.S. Provides an easy and simple interface that helps traders when trading.
Pros and Cons of eToro and Robinhood.
eToro and Robinhood have been around in the trading and investing market for trademark cryptocurrency a long time and have managed to earn the trust of millions of registered users. They’ve both been highly successful in helping young traders with no experience to flourish and gain expertise by providing helpful tools and tips.
In terms of efficiency, both platforms have been proven to be better than many other platforms in the market. Let’s list and compare their pros and cons individually to get a better idea.
Pros of eToro.
Provides a platform that helps investors socialize with other successful traders and allows them to customize their profiles to follow successful trends Provides both web and mobile platforms in 26 languages Provides better communication among traders to help each other and build a community It prioritizes the security of customers’ assets. eToro is highly transparent and is regulated by financial institutions to ensure maximum safety and protection Minimizes the likelihood of scams or frauds by depositing funds in segregated acco unts. It complies with FCA, CySEC, and ASIC standards to protect investors Pioneered anti-money laundering policies which make it even more secure Provides guidelines to get accounts secured with a two-step verification process to prevent online hacking and fraud.
Cons of eToro.
A bit expensive compared to other platforms as it has high non-trading fees Can improve deposit and withdrawal services as it includes a $5 withdrawal fee Although it has decent customer support, which includes email and live chat to help their customers, it can still be improved.
Pros of Robinhood.
Robinhood is much cheaper compared to other platforms in the market. It is highly affordable, and you can start an account with almost no money It helps beginners trade, and experienced traders find it useful It implements features such as cash management and recurring investment tools Licensed and regulated by FINRA and the SEC to ensure security.
Cons of Robinhood.
Limited product range Below average interface and experience on the platform Could work and improve on the customer service department. Only employs email support Lack of robust educational resources and tools Is not fully transparent Doesn’t provide maximum security and has been in the news concerning many data breaches and hacks.
Read More.
How to Make Money with Cryptocurrency How to Withdraw from Binance How to Transfer From Coinbase to Coinbase Pro How to Transfer from Coinbase to Binance How Does Cryptocurrency Gain Value? How to Read Crypto Charts.
Final Thoughts.
After weighing aspects of eToro and Robinhood, eToro has the edge over Robinhood in almost every aspect of trading. With its reputation being tarnished regularly, Robinhood has been in the spotlight for its security and where to copy trade crypto transparency concerns. eToro is most certainly a winner, especially when providing traders and investors who are new to the market and have practically zero knowledge. It offers freedom to experiment and security to back up any issues that might happen during the process.
eToro helps you socialize and communicate with other traders. This feature alone sets it apart from the many platforms that have been competing in the trading market. So if you’re new and looking to experiment and learn, we would recommend eToro over Robinhood. Even though Robinhood is a good platform, eToro is better in many ways.
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I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.