To compare eToro vs Robinhood is to put side by side one of the best social trading platforms and the pioneer of commission-free mobile trading. Logically, they have their strengths and weaknesses and appeal to different types of investors.
But who are the two brokers best for, and what do they excel in? Should you be on either one?
We’ve put together all the technicalities we could find on eToro and Robinhood to answer those questions for you. Continue reading to see how they compare.
Side-by-Side Comparison
Here are the basics you need to know, before we go any further:
| eToro | Robinhood | |
| Account types | Retail, Professional, Demo | Instant, Gold, Cash |
| Supported deposits | Credit/Debit card, Paypal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort, Bank transfer, Trustly, POLi | Bank Transfer |
| Account minimum | $10-$10,000 based on place of residence | $0 ($200 for Robinhood Gold) |
| Trading fees | Spreads 0.75%-5% | $0 |
| Withdrawal fee | $5 (plus conversion fees for international users) | $0 |
| Limitations | Pattern Day Trading | Pattern Day Trading |
| Products |
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| Mobile app | Android and iOS | Android and iOS |
| Customer Support | Email, Live Chat, ticketing system | Email, Live Chat, social media, phone |
| Excluded countries | Small portion of the US (New York, Tennessee, Minnesota, Nevada, American Samoa, Guam, Hawaii, Northern Marianas, Puerto Rico, and US Virgin Islands) and a long list of other jurisdictions | All but the US |
| SIPC coverage | Yes | Yes |
| FDIC coverage | Yes | Yes |
| Regulation | CySEC (Cyprus), FCA (UK), ASIC (Australia), DNB (Netherlands), FinCEN (US) | FINRA (USA), SEC (USA) |
Judging by the table Robinhood might be in the lead, even though it supports fewer trading products. Especially when considering that the Robinhood minimum deposit is $0.
Let’s tackle further to see if that’s the case.
Usability and Accounts
Although easy-to-use and intuitive, the eToro platform may be suitable for more advanced investors with previous knowledge and trading experience. Its unique social trading features only add to this claim.
On the other hand, Robinhood is well–known for its simplistic and clean interface. What its founders intended to accomplish with it is to lower the entry-level for traders. However, Robinhood is also criticized for managing to do so. Its interface may be even too simplistic, and users overlook the fact they are still making complex trades.
Now, let’s move to the Robinhood vs eToro account requirements.
eToro account requirements and features
Opening an account on eToro includes the usual signing up and verification steps. Needless to say, users must be 18 years or older. To verify your account, you need to submit both proofs of identity and address. The process can take up to a few days.
eToro utilizes features such as Copy Trader and Popular Investor. Copy Trader enables real-time insight into the moves of other investors, with the opportunity of copying them. The Popular Investor is a program that supports the Copy Trader feature. Investors receive a financial motivation for allowing insight into their trades. And if you’re interested to see what all this looks like before committing, we have some great news. eToro has a demo account on which you can test the platform and your trading strategy without risking your own money.
Robinhood account requirements and features
Like eToro, Robinhood requires proof of identity and address. When signing up, you need to provide your Social Security Number, date of birth, and citizenship. Why does it need your SSN, you may ask? Since both you and Robinhood will need to report your assets to the IRA. (Yes, you should report your crypto too). Account verification usually takes less than one day. However, during the process, you may be required to provide some additional documents.
There are not many fancy features on Robinhood. What it includes are the basic trading tools and technical indicators. However, these are more than enough to make a trade. Unfortunately, there is no Robinhood demo account either.
Products
As one would expect, Robinhood has fewer trading options than eToro. That’s only natural when taking into account the simplicity of the user interface. Its offerings are as follows:
eToro doesn’t currently offer Options trading, but it supports:
- Indices
- Currencies
- Commodities
While Robinhood does not support forex or futures trading, you can get this on eToro. Commodities available on eToro are gold, silver, and oil, to name a few.
Unfortunately, mutual funds are not supported by either broker. What they both handle, though, are fractional shares. These may come in handy for all those investors who want to diversify their portfolios without overspending. Finally, what Robinhood has, but eToro is lacking, are penny stocks.
How does the eToro vs Robinhood crypto offering compare? On eToro, there are just over 50 cryptocurrencies available for trading. Robinhood, on the other hand, offers only seven. While eToro is not available in 10 US jurisdictions, Robinhood’s crypto trading is not accessible only in the states of Hawaii and Nevada.
Fees
Robinhood doesn’t charge any commission fees for your account. You’ll still need to pay something, though. There is the Regulatory Transaction fee, charged $5.10 per $1,000,000 of principal. This is followed by the Trading fee. It is charged $0.000119 per share (equity sells) and $0.002 per contract (options sells), but no more than $5.95. And finally, American Depositary Receipt fees fall in the range of $0.01-$0.03 per share.
What about the eToro fees? eToro will not charge you any commission for stock trades or management fees, either. However, eToro trading fees are charged as a spread ranging from 0.75% to 5%. On top of that, eToro has a fixed withdrawal fee of $5. And you can expect a recurring $10 inactivity fee per month after not being active on the platform for a year.
Can you guess how eToro vs Robinhood crypto fees differ? When it comes to crypto, eToro will charge you a spread ranging from 0.75% to 5%. Robinhood will charge you nothing. Yes, you read that right. While it may not be one of the best crypto trading platforms, crypto exchanges are commission-free on this broker.
Security
eToro secures accounts by using state-of-the-art encryption and masking. The platform also employs rate limits on certain operations like login attempts. To ease your mind even further, you can always use 2FA (two-factor authentication). A verification code is sent to the phone number associated with your eToro account so you can log in.
When it comes to your assets, eToro uses different security methods. Cash is stored in licensed US banks and is FDIC-insured up to $250,000. To secure crypto holdings, eToro employs a combination of online and offline wallets, together with constantly keeping an eye on the account for suspicious activity. US stocks held in your eToro account are covered by SIPC. Finally, ETFs are secured in partnership with APEX of up to $500,000.
Since eToro vs Robinhood fees differ greatly, one would expect to see different approaches to security too. Here’s how Robinhood handles things.
Accounts on Robinhood are secured by employing encryption techniques and a 2FA, as well. Not so different from eToro. All sensitive information such as SSN and other personal data is encrypted before being stored. Furthermore, passwords are also stored in an ineligible format by using a hashing algorithm. Robinhood, as well as eToro, sends a one-time verification code to your phone so you can access your account even more securely. On top of that, the 2FA is applied every time you try to access the account with a new device.
Robinhood is a member of SIPC, as well as FDIC. This implies that your assets are protected up to $500,000 and up to $250,000 for cash funds. Bear in mind, though, that your cryptocurrencies are not secured either by SIPC or FDIC.
eToro vs Robinhood: Mobile Apps
Both competitors can be used on a mobile device, besides the web-based platform. eToro and Robinhood have a mobile app available to Android or iOS users and optimized for touchscreens. Both apps are not much different from the web platforms. You can use the same features you get on the web too.
Robinhood vs eToro: Customer Service
The Customer Service Department of eToro can be reached by opening a ticket through the platform, email, or Live Chat. However, the Live Chat option is only available to eToro Club members. Unlike most customer service teams, the eToro support team is available only 24/5. You cannot reach them on weekends.
It seems that Robinhood performs better in this category. Its customer service is available 24/7 and can be reached not only by email and Live Chat but through social media too. Furthermore, users can also talk to somebody on the phone. Robinhood has a feature that allows users to schedule a call with a representative and can expect them to call in the next 30 minutes.
Still not sure who is better: eToro or Robinhood? Let’s sum things up.
Who Is eToro Best For?
eToro is best for investors who want access to different trading assets to add some variety to their portfolios. It’s also suitable for more advanced endeavors in the financial markets since it enables copying of what other investors are doing. US investors are limited to crypto trades only. But international users can use it to build a diverse portfolio.
eToro Pros and Cons
+Social trading
+Demo account
+Free stock trading
– Higher-end fees
– No mutual funds
– US customers are limited only to cryptocurrency trading
Who Is Robinhood Best For?
Considering that Robinhood is only available in the US, it is a no-brainer that it is best for US users. It’s also more suitable for novice investors who don’t have a ton of money to be paying high brokerage fees.
So, what are the Robinhood cons?
Anyone who prefers using a mobile device for their trades may find the platform very useful. However, you should be wary of the over-simplified approach to complex trading methods. Due to the simple user interface, new investors may neglect the risks involved and be more inclined to make risky moves.
Robinhood Pros and Cons
+ Little to no fees
+ Simple to navigate
+ Supports fractional shares and penny stocks
– Not as diverse trading offerings as other platforms
– Limited number of cryptocurrencies
– Available only for US clients
Which Is Better: eToro or Robinhood?
If fees are what you have in mind when asking that question, then the answer to your question is Robinhood. Compared to eToro, it is virtually a free brokerage platform. It even supports trading cryptocurrencies for free, which is rare nowadays.
However, if you’re considering which one offers more diverse trading options, then that is eToro. Even though it has higher fees, you will get your money’s worth with access to social trading features.
We hope that this Robinhood vs eToro comparison has helped you get a better sense of direction when it comes to these two brokers. If you still have some doubts check out our in-detail reviews on eToro and Robinhood. Those in need of additional options can also make use of our Webull vs Robinhood, eToro vs Coinbase, Coinbase vs Robinhood, and eToro vs Binance comparisons.
FAQ
The main difference between these two brokers is that eToro is an international social trading platform, while Robinhood is a broker that only does business on the US market. While eToro is one of the leaders among the social trading platforms, Robinhood is a pioneer in commission-free mobile trading.
To sell crypto on eToro, you’ll need to access your portfolio and select the cryptocurrency you want to sell. In the far right end of the designated currency field, you will notice a red X button. By selecting it, the platform will provide you with the option to ‘Close Trade’. Closing the trade indicates that your crypto was sold, and you’ll see the funds in your available assets.
eToro is available to US citizens, except in the states of New York, Tennessee, Minnesota, Nevada, American Samoa, Guam, Hawaii, Northern Marianas, Puerto Rico, and the US Virgin Islands. Bear in mind that US citizens residing outside the US cannot use the platform either. US citizens who have access to the platform can use it only for crypto trading.
Both trading platforms have their strengths and weaknesses. They are easy to use and can be accessed by different types of devices. They both have SIPC and FDIC coverage too. Generally, eToro is more suitable for experienced traders who seek portfolio diversification. Robinhood, on the other hand, is a better fit for novice investors who want to save on commission fees. Make sure to read our eToro vs Robinhood comparison for more details.