eToro vs. Robinhood: Which is best? - Business Insider India

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Bottom line: eToro USA is one of the best cryptocurrency exchanges and is great for crypto-focused and community-oriented traders, as it offers more assets — including automated investing options like CopyPortfolios and the CopyTrader^™ system. Robinhood, on the other hand, is better suited for active traders and options traders who value low fees and ease of use. Though Robinhood has a fairly smaller crypto selection, it could be a better choice for crypto traders who don't want to pay any fees for exchanges.

eToro vs. Robinhood: The Biggest Differences

eToro USA - Editorial Name Only and Robinhood Investing - Product Name Only both cater to several types of investors. Though Robinhood initially started out as a stocks, ETFs, and options trading platform, it eventually launched crypto trading (it now offers more than 18 cryptocurrencies). eToro USA initially launched as a crypto exchange, but it has now added stocks and ETFs to its selection.

Overall, eToro is the best choice for cryptocurrency traders in search of a larger range of trading tools and available cryptocurrencies. US users can buy and sell more than 79 crypto assets, and the platform also lets you mimic the portfolios of more experienced traders or invest in pre-built and regularly rebalanced portfolios. It's also one of the best dogecoin crypto apps for beginners.

Robinhood, however, is also one of the best investment apps for beginners and is best suits frequent active traders, options traders, and crypto traders who want the lowest fees possible. The brokerage offers commission-free stocks, ETFs, options, and cryptocurrencies.

eToro and Robinhood's features and account options also vary.

Is eToro USA Right for You?

Pros

More than 79 cryptocurrencies available, including bitcoin, ether, dogecoin, and others
US users can trade both full and fractional shares of stocks and ETFs without commissions
eToro's CopyPortfolios give you access to diversified pre-built investment portfolios; its CopyTrader^™ system lets you mirror the portfolios of more experienced traders to generate better returns
Several educational resources, web and mobile app access

Cons

Not available to residents of New York, Minnesota, Nevada, Puerto Rico, Hawaii, Guam, American Samoa, Northern Marianas, and the US Virgin Islands (see a full list of its geographic restrictions here)

Who is eToro USA Best For?

eToro USA is best for crypto traders wanting to exchange popular cryptocurrencies like bitcoin, ether, and dogecoin. It's ideal for beginners looking for helpful tools and community features. It can also be a good platform for experienced traders wanting to utilize eToro's mimic strategies.

Unfortunately, eToro is not available in all US states and territories.

Read our eToro investing review

What eToro USA offers

eToro USA - Editorial Name Only offers more than 79 cryptocurrencies for US traders, including bitcoin, ether, dogecoin, stellar lumens, cardano, and more. But it's gone a step further than many crypto exchanges by launching stock and ETF trading.

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

Additionally, eToro's CopyTrader^™ system may be useful to those who prefer more of a hands-off approach to crypto trading. With this system, you can search for top-performing traders and mimic their portfolios. You'll just need to allocate a set amount of money, and eToro will adjust your portfolio to match your desired trader's investments.

Another option the crypto exchange offers for passive investors is CopyPortfolios. You can choose from four different pre-made portfolios (CryptoEqual, CryptoPortfolio, Crypto-currency, and TheTIE-LongOnly SmartPortfolio) that eToro regularly rebalances for you. However, while there aren't any fees for these portfolios, you'll minimum requirements range from $2,000 to $5,000, depending on the account you've chosen.

Finally, eToro USA 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.

Is Robinhood Right for You?

Pros

Commission-free trading for stocks, ETFs, options, and cryptocurrencies
Fractional shares and margin accounts available
Cash management accounts
Web platform and mobile app are easy to navigate

Cons

Limited investment types; no mutual funds or bonds
No joint or custodial accounts
Lack of investing research and trading tools; can only take advantage of professional research if you're a Robinhood Gold member

Who is Robinhood Best For?

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 an extra options contract fee (many brokerages charge $0.65 per contract).

Both Robinhood and eToro are great options for cryptocurrency traders, but Robinhood doesn't offer as many assets as eToro does. It currently has a selection of 18 cryptocurrencies, including bitcoin, ether, dogecoin, and solana. Plus, prospective investors should keep in mind that Robinhood is still rolling out access for its crypto wallets (crypto wallets provide secure storage for digital assets and allow you to transfer your holdings in and out of investment platforms).

Read our Robinhood investing review

What Robinhood offers

Robinhood has a leg up on eToro USA when it comes to its margin accounts and options investments. eToro offers neither, so you'll want to keep that in mind if you're looking to utilize options or borrow money to trade larger sums. As for its other account types, Robinhood offers individual accounts and cash management accounts.

Robinhood offers traditional IRAs and Roth IRAs. These accounts will give users access to $0 trading commissions, a 1% match on every dollar they contribute, recommended portfolios, and more.

With Robinhood Gold, individuals gain access to margin accounts. Margin trading requires a $2,000 minimum, and you'll incur a Robinhood Cash Management Account - Gold Member - Fees Display to maintain the account. However, these fees grant each user perks that include Nasdaq market data, thousands of Morningstar research reports, and a Robinhood Cash Management Account - Gold Member - APY margin interest rate.

Robinhood also offers numerous educational guides on all things investing and options trading.

eToro and Robinhood's features and account options also vary.

eToro vs. Robinhood — Frequently Asked Questions (FAQs)

Is eToro or Robinhood better?

Between eToro and Robinhood, the best platform for you depends on your individual preferences. That said, Robinhood is generally the better choice for experienced, hands-on investors looking for lower fees and access to options trading. eToro, however, has a larger selection of cryptocurrencies.

Are eToro and Robinhood the same?

eToro and Robinhood are not the same but are very similar cryptocurrency exchanges that are both suitable for investors wanting to diversify their investment portfolio with various investment options, including crypto. Both investment platforms offer stocks, ETFs, options, and cryptocurrencies.

Is eToro legit?

Yes. eToro USA is a regulated cryptocurrency exchange.

Is Robinhood good for beginners?

Robinhood is a solid option for DIY beginner investors who want access to commission-free trading, a simple user interface, and copious educational guides on all things investing. However, if you're more of a hands-off investor, it may not be the best choice.

What is the downside to Robinhood?

While Robinhood's lack of fees make it an appealing choice for those who want to save on trading costs, the platform lacks a variety of account types. It isn't a great move if you're in search of joint accounts, mutual funds, or custodial accounts.

What is the downside to eToro?

The downside to eToro is that the cryptocurrency exchange only offers a limited selection of cryptocurrencies. Plus, it isn't available to residents of all US states and territories, including New York, Minnesota, Nevada, Puerto Rico, Tennessee, Hawaii, Guam, American Samoa, Northern Marianas, and the US Virgin Islands.

eToro USA vs. Robinhood: Which crypto app should you choose?

eToro USA and Robinhood are both top cryptocurrency exchanges that offer stocks and ETFs as well as crypto. eToro USA is the better choice for investment tools and automated investing. Passive investors and beginners may prefer eToro's platform to Robinhood's.

Robinhood is a better choice for active investors and options traders. The platform has generally low fees and a simple-to-use interface for accessible trading. But you'll need to pay for Robinhood Gold to get the more advanced charting features and trading tools.

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