eToro vs Robinhood in Comparison 2022 | Which One is Better?


eToro is one of the most popular investment platforms in the world. This is because it offers a sleek user experience on mobile or desktop. Also, it has plenty of products that can attract both experts and beginners. Yet, eToro ensures top-notch customer service to maintain quality.

Robinhood is relatively new in this industry. However, it has already become hugely popular for its simple interface and user-friendly for beginners. But which one is better?

So, let's know all about these platforms through the eToro vs Robinhood comparison that I am going to do in this article. It's going to be an unbiased comparison. AtoZ Markets is in no way responsible for any information given by the writer.

About eToro

etoro vs robinhood

image source: eToro

eToro is one of the world's most popular social trading networks. Two brothers, Yoni and Ronen Assia founded this company back in 2007. It has headquarters in London. Also it has brand offices in New York, Tel Aviv, And Tokyo.

It allows users to trade in cryptocurrencies as well as Stocks, Commodities, Indices. It has a pretty good user-experience. As a result, it has more than six million users right now.

About Robinhood

Robinhood vs eToro

Robinhood is a commission-free trading platform that was founded in 2013. And, it was founded by Vladimir Teneve and Baiju Bhatt. And, it is more focused on trading using mobile app.

Despite being new it has gained a hude popularity and accuired more than 3 million users with almost $200 million funding.

The app has several features that make it unique:

  1. It is commission-free, which means users can buy and sell stocks without paying a commission.
  2. It has a user-friendly interface that makes it easy to use.
  3. It offers a wide range of features, including real-time stock quotes, a customizable portfolio, and instant notifications.

Robinhood is an excellent app for anyone who wants to invest in the stock market. It is easy to use and offers a wide range of features.

eToro vs Robinhood: Trading Experience

Trading Platform Comparison

eToro offers an excellent trading experience on both desktop and mobile platforms. And it is a well-established, global broker that provides a wide range of features, tools, and services, while Robinhood is a relatively new player in the field.

Desktop Trading Platform

eToro offers both desktop and mobile trading. But Robinhood is more focused on mobile apps. That is why you can quickly tell that eToro is better at desktop trading. First, however, let's discuss that in detail.

Layout

eToro has a very sleek, modern look, with all vital information easy to find and navigate. On the other hand, Robinhood has a more minimalist design, with less information on the screen at one time. This can be good or bad, depending on your preferences. Some people prefer having more information at their fingertips, while others may find it cluttered and difficult to navigate.

Features

eToro offers a variety of features, including:

  • A wide selection of assets to trade
  • Charting and analysis tools
  • Social trading
  • Crypto trading

Robinhood offers a bit less functionality but still provides a good number of features, including:

  • A wide selection of assets to trade
  • Charting and analysis tools
  • Real-time quotes
  • Margin trading

Ease of use

eToro's desktop platform is straightforward to use. The layout is intuitive and clear, and all of the essential features are clearly labeled and easy to find. In addition, the platform offers a wide range of features, including advanced charting tools, a variety of order types, and a wide range of filters and search functions. eToro also offers a very comprehensive education center, which is packed with information on various trading topics.

Robinhood's desktop platform is very basic and limited. The layout is unorganized and straightforward, and there are few features available. For example, the platform offers very limited charting capabilities, and there is no way to place advanced orders or use other trading tools. Robinhood also does not offer any educational resources, so new traders will have to look elsewhere for information.

Overall, I would say that eToro's desktop experience is better than Robinhood's. It is sleeker and more modern, offering a wider selection of features. However, Robinhood is still a good option, and it is worth considering if you are looking for a low-cost alternative to eToro.

Mobile Apps

eToro's app offers traders a wide range of features, including the ability to trade stocks, ETFs, options, and cryptocurrencies. The app also offers a wide range of analytical tools, including charts, indicators, and trend lines. And if you need help with your trading, eToro's customer service team is available 24/7.

On the other hand, Robinhood offers very few features and no customer service. The app's main selling point is its commission-free trading, but even that is not as good as it seems. In addition, because Robinhood offers limited customer services, if you have a question or problem with your account, you may not get the best solution.

Overall, eToro's mobile app is far superior to Robinhood's. Etoro's app is sleek, easy to use, and packed with features, while Robinhood's app is barebones and difficult to navigate. So if you are looking for mobile trading experience, Etoro is the clear winner.

Etoro vs Robinhood: Usability

On the issue of usability, there is no comparison between Etoro and Robinhood. Etoro is a professional, sophisticated platform that is designed for experienced traders. It offers a wide range of features and tools that allow you to trade currencies, stocks, and commodities.

On the other hand, Robinhood is a very basic platform that is designed for beginner traders. It does not offer many features or tools and is not very sophisticated.

If you are looking for a sophisticated platform with a wide range of features, Etoro is the best choice. However, if you are a beginner trader, Robinhood is a better choice.

Etoro vs Robinhood: Fees

One of the most important factors to consider when choosing a broker is the fees. For example, Etoro, a better and older platform, charges more than Robinhood in some ways.

Trading Fees

Etoro and Robinhood both offer commission-free trading for stock and ETFs. However, Etoro charges 0.09% on stock CFDs and 0.75% on Crypto CFDs. In contrast, Robinhood is free on any trading.

Inactivity Fees

Etoro charges inactivity fees while Robinhood does not. For example, if you do not log in for more than 12 months, then it will charge $10 per month.

Other/ Non-trading fees

Etoro charges a withdrawal fee for moving money off the platform. The fee is $5 for each withdrawal, and there is a minimum withdrawal amount of $30. In addition, Etoro also charges a fee for closing an account.

Robinhood does not charge any fees for withdrawing money or closing an account. Also, it does not charge any annual fee for maintenance.

But, both platforms charge $75 for account transfer on other platforms.

Etoro vs Robinhood: Investment Options

Etoro is a social media platform that allows you to invest in various assets, including stocks, commodities, indices, and currencies. You can also follow other investors and copy their strategies. This can be a great way to learn more about investing and get started in the market.

Robinhood is a commission-free stock trading platform. This means that you can buy and sell stocks without paying any fees. This can be a great option if you are just starting out in the stock market and want to avoid any extra costs. Here you have:

  • Stocks & Funds
  • Options
  • Gold
  • Cash Management
  • Crypto

So, eToro has plenty of opportunities while Robinhood has simple but interesting products that can be a better choice for beginners. And, eToro offers sleek investment options for experts as well as beginners.

eToro vs Robinhood: Account Types

eToro is not that much of a fan of various account types. Instead, it has club tiers that are similar to account types. According to your investment amount you can get promotion to the upper levels and get better benefits. Here are the levels.

  • Silver
  • Gold
  • Platinum
  • Platinum+
  • Diamond

However, eToro has two types of accounts: professional, Retail. If you choose to open a retail account, it will require less information than any normal account. For example, it will ask for personal details, account verification details, etc. But, if you intend to open a professional account, it will ask you for various information. Also, you have to pass their examination to maintain the quality.

On the other hand, Robinhood has only three account types without having any tires. These account types are Instant, Gold, Cash. You will be under an Instant account right after signing up, and it will let you deposit a maximum of $1000 and do margin trading. And Gold is their premium account with multiple features that other accounts don't have. It indeed has a higher Cap. And, you have to pay $5 monthly for this account type. However, Cash is their lowest account and offers fewer features. Also, do not allow to deposit more than $1000 in instant deposit.

eToro vs Robinhood: Security

Broker security

When it comes to security, eToro is the clear winner. eToro is a regulated company with strong security infrastructure. Robinhood is a startup with a less impressive security record.

In November of the last year, Robinhood suffered a security breach that exposed the personal information of over 3 million users. eToro, on the other hand, has never suffered a security breach.

eToro also has a much better security infrastructure. They use two-factor authentication and have a team of dedicated security experts who constantly monitor for security threats. Robinhood does not have these features.

Overall, eToro is the more secure option for online trading. They have strong security infrastructure and a proven track record of keeping user data safe. On the other hand, Robinhood is a less reliable option and is not as secure as eToro.

eToro vs Robinhood: Regulations

Broker regulations

The first thing you need to think about is the broker's regulation. This is important because you want to ensure that your money is safe and that the broker is operating within the law.

eToro is a social trading platform that allows users to trade cryptocurrencies, stocks, commodities, and indices. Etoro is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the United Kingdom.

Robinhood is a commission-free stock brokerage app that allows users to buy and sell stocks and ETFs. Robinhood is licensed and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

One of the key regulatory differences between eToro and Robinhood is that eToro is a registered investment advisor (RIA), while Robinhood is not. RIAs are subject to various regulations, including regulations relating to the management of client assets, the provision of investment advice, and the disclosure of conflicts of interest.

eToro is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), providing additional protection for investors.

In conclusion, eToro is a regulated broker-dealer, and RIA is subject to various regulations that protect investors. Robinhood is a commission-free stock brokerage app licensed and regulated by the SEC and FINRA.

eToro vs Robinhood: Research and Tools

When researching and trading stocks, eToro and Robinhood offer different tools and features. eToro offers a wide range of features, research tools, and educational materials to help traders make informed decisions. In contrast, Robinhood offers limited research tools and no educational materials.

One of eToro's most important research tools is the company's stock screener. The stock screener allows traders to filter stocks by various criteria, including company size, industry, and price. eToro also offers a wide range of analytical tools to help traders make informed decisions. These tools include a financial calendar, which helps traders track upcoming events that could impact the stock market, and a stock charting tool, which allows traders to track the performance of individual stocks.

Robinhood does not offer any research tools or educational materials. The company's only research tool is a simple stock screener, which allows traders to filter stocks by a limited number of criteria, such as company size and industry. The company's stock charting tool is also very limited and does not allow traders to track the performance of individual stocks.

eToro offers a wide range of features, research tools, and educational materials that can help traders make informed decisions when it comes to trading stocks. In contrast, Robinhood offers limited research tools and no educational materials. For this reason, eToro is the better choice for traders who want to research and trade stocks.

eToro vs Robinhood: Customer Support

Broker customer support

Being one of the best trading platforms, eToro offers better customer support with its expert members.

Availability

The biggest difference between eToro and Robinhood regarding customer support availability is that eToro offers 24/7 customer support. In contrast, Robinhood offers customer support only during the weekdays from 9 am to 5 pm PT.

This is a significant difference, as eToro's 24/7 customer support means that you can always get help when you need it. In contrast, Robinhood's weekday-only customer support means that you may have to wait a while to get help if you need it outside of business hours.

Speed

eToro is a regulated broker with an international customer support team that responds quickly to customer inquiries. Robinhood is a startup with a small customer support team that sometimes takes a while to respond to customer inquiries.

eToro has a customer support response time of fewer than 5 minutes, while Robinhood's customer support response time is sometimes more than 24 hours.

Quality

When it comes to the quality of customer support, eToro and Robinhood differ greatly. eToro offers a wide range of support options, including email support and even live chat support. In addition, eToro's customer support staff is highly knowledgeable and is able to help customers with a wide range of issues.

Robinhood, on the other hand, offers only email support. And while the staff is knowledgeable, they are often unable to help customers with more complicated issues. But, overall, Etoro's customer support is superior to Robinhood's.

Is eToro Better Than Robinhood?

Both eToro and Robinhood offer unique benefits and features that may be more advantageous for certain investors.

eToro is a social trading platform that allows investors to follow and copy the transactions of experienced traders. This can be a beneficial way for novice investors to learn from more experienced traders and potentially increase their investment returns. eToro also offers a range of tools and features that can be used to analyze and research potential investment opportunities.

Robinhood is a commission-free stock trading platform that offers a wide range of investment options. Robinhood is ideal for investors looking for a simple, user-friendly platform with no commission fees.

Ultimately, the best platform for you will depend on your investment goals and experience level.

Conclusion

So, that was the eToro vs Robinhood comparison. If you like to keep everything simple, then Robinhood is a great platform. Also, beginners should put their foot into this trading industry. On the other hand, eToro is quite popular and made of expert people. Also, it has an excellent customer support system that is always ready to help you within no time. Although they have removed the phone call option, their live support provides an instant solution that you will never get in Robinhood. So, if you are just getting started in this industry, try to get in with Robinhood, then move into the eToro for more sophisticated and expert trading.