Which platform is right for you?

eToro vs. Robinhood: The Biggest Differences

Both eToro and Robinhood cater to multiple types of investors. Although Robinhood initially started out as a stock, ETF, and options trading platform, it eventually launched into crypto trading (it now offers over 10 cryptocurrencies). eToro USA initially launched as a crypto exchange, but has now added stocks and ETFs to its selection.

Overall, eToro is the best choice for cryptocurrency traders looking for a wider range of trading tools and available cryptocurrencies. US users can buy and sell over 25 crypto assets, and the platform also allows you to emulate the portfolios of more experienced traders or invest in pre-built and regularly rebalanced portfolios.

Robinhood, however, is best suited for frequent active traders, options traders, and crypto traders who want the lowest fees possible. The brokerage offers stocks, ETFs, options, and cryptocurrencies commission-free.

Costs

1% when you buy or sell a crypto asset; 0% stocks and ETFs

Types of investment

Cryptocurrencies, stocks and ETFs

Costs

1% when you buy or sell a crypto asset; 0% stocks and ETFs

Types of investment

Cryptocurrencies, stocks and ETFs

Advantages

  • Can trade Bitcoin, Dogecoin, Ethereum, Litecoin, and a dozen other popular virtual assets; Stock and ETF trading available
  • eToro Copy Portfolios allow you to follow and copy the portfolios of experienced traders to improve your investment returns
  • Several educational resources
  • Access to web and mobile applications

The inconvenients

  • Not available to residents of New York, Minnesota, Nevada, Puerto Rico, Tennessee, Hawaii, Guam, American Samoa, Northern Marianas and US Virgin Islands (see full list of its restrictions geographical here)
  • Limited selection of cryptocurrencies (eToro USA currently offers over 25)
  • No margin accounts

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More information

  • Promotion: None at this time.
  • Features: Dogecoin and 15+ Cryptocurrencies, CopyTrader System, Copy Wallets and eToro Trading Academy
  • App Store Rating: 4.6 iOS / 4.3 Android

Minimum account

$0 ($1 for fractional shares; $2,000 for Robinhood Gold)

Types of investment

Stocks, ETFs, Options, Cryptocurrencies, IPOs and ADRs

Minimum account

$0 ($1 for fractional shares; $2,000 for Robinhood Gold)

Types of investment

Stocks, ETFs, Options, Cryptocurrencies, IPOs and ADRs

Advantages

  • Free trading of stocks, options, ETFs and cryptocurrency
  • IPO investment available
  • Fractional Stocks and Margin Investing
  • Cash management accounts available
  • The website is easy to navigate

The inconvenients

  • Lack of investment research and negotiation tools; can only take advantage of professional research if you are a Robinhood Gold member
  • No retirement accounts, joint accounts, college savings accounts, or mutual funds
  • Limited customer service availability
  • Does not offer automatic transfer upon death or allow users to name beneficiaries

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More information

  • App Store Rating: iOS 4.2 / Android 3.8
  • Consider this if: You want to invest in a wide range of stocks and ETFs.

eToro and Robinhood features and account options also vary.

Is eToro for you?

eToro offers over 25 cryptocurrencies for US traders, including bitcoin, ethereum, dogecoin, stellar lumens, cardano, and more. But it went further than many crypto exchanges by launching stock and ETF trading.

Although you pay 1% each time you buy or sell cryptocurrencies, you can access eToro stocks and ETFs without paying commissions. You’ll just need a minimum of $10 to get started, but you can also trade fractional shares.

Additionally, eToro’s CopyTrader The system can be useful to those who prefer a more hands-off approach to crypto trading. With this system, you can find the most successful traders and mimic their portfolios. You will only have to allocate a set amount of money, and eToro will adjust your portfolio according to your desired trader’s investments.

Another option offered by the crypto exchange for passive investors is CopyPortfolios. You can choose from four different predefined portfolios (CryptoEqual, CryptoPortfolio, Crypto-currency and TheTIE-LongOnly SmartPortfolio) which eToro regularly rebalances for you. However, while there are no fees for these wallets, your minimum requirements range from $2,000 to $5,000, depending on the account you choose.

Finally, eToro’s simple interface and wealth of educational resources make it a suitable choice for beginners. In fact, its eToro Academy offers an extensive collection of guides and videos on all things crypto. You can configure the eToro app on iOS and Android devices.

Read Personal Finance Insider’s full eToro review here »

Is Robinhood for you?

Robinhood is a great option for active traders, options traders, and crypto-focused investors. The brokerage currently offers commission-free stocks, ETFs, options, and cryptocurrencies. And unlike most investment platforms, Robinhood doesn’t charge additional options contract fees (many brokerages charge $0.65 per contract).

Robinhood is ahead of eToro USA when it comes to margin accounts and options investing. eToro offers neither, so keep that in mind if you’re looking to use options or borrow money to trade larger sums. As for its other account types, Robinhood offers individual accounts and cash management accounts.

Both Robinhood and eToro are great options for cryptocurrency traders, but Robinhood doesn’t offer as many assets as eToro. It currently offers a selection of 11 cryptocurrencies, including bitcoin, ethereum, dogecoin, and solana. Additionally, potential investors should keep in mind that Robinhood is still rolling out access to its crypto wallets (crypto wallets provide secure storage for digital assets and allow you to transfer your holdings to and from investment platforms ).

With Robinhood Gold, individuals have access to margin accounts. Margin trading requires a minimum of $2,000 and you will need to pay a monthly fee of $5 to maintain the account. However, this fee grants each user benefits that include Nasdaq market data, thousands of Morningstar research reports, and a 3% margin interest rate.

Robinhood also has many educational guides on all things options investing and trading. The platform’s mobile app is available on iOS and Android devices.

Read the full Robinhood review by Personal Finance Insider here »

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