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eToro vs Robinhood
Trading platforms that offer both traditional investment options and crypto are becoming more and more prevalent.
It can be hard to decide which platform is best for your needs. In this guide we compare eToro and Robinhood, two popular exchanges that offer both crypto and stocks, in order to help you decide which one may work for you.
eToro USA LCC does not offer CFDs, only real Crypto assets available
Robinhood Overview
Robinhood is an investment platform that focuses on making traditional stock market investment easy and accessible for everyone. Robinhood added crypto support to their platform during the huge crypto bull run of 2017. Robinhood is only available to US residents. The platform boasts zero commission on both stock and crypto trades. They make money by having price spreads for their assets of about 0.1%. Note that you cannot deposit or withdraw crypto from Robinhood to or from an external wallet.
- A great one-stop shop for anyone looking to invest in cryptocurrency or stocks
- Easy onboarding procedure requires very little from user
- Fully regulated financial institution in the United States
- Support for BTC, ETH, LTC, BCH, DOGE, ETC, and BSV
Robinhood Pros & Cons
Pros
Low fees (0.1% spread)
No deposit minimums
Offers both crypto and traditional investment options
Easy to use and navigate platform
Cons
No crypto deposits or withdrawals
Limited crypto selection
Only available in US
eToro Overview
eToro was founded way back in 2007 but didn’t offer any crypto (Bitcoin had yet to even be released).
Today, eToro offers traditional investment options like stocks and ETFs, along with crypto exchange and investment. eToro is one of the most reputable services on the market. They accept credit, debit and wire transfers as payment methods with no deposit fees while charging just $5 flat for withdrawals. eToro is not available for Canadians.
Disclaimer: eToro USA LCC does not offer CFDs, only real Crypto assets available
- Great for crypto beginners
- Solid crypto/general trading platform
- Reliable company with solid trust in the community
- Fully supports credit cards for deposits and withdrawals
eToro Pros & Cons
Pros
Access to traditional and crypto markets
Copy trading feature
Allows staking for 3 crypto assets
Trusted platform with 15 years of experience
Cons
Not available to all US states and less trading options for US users
Not available to Canadians at all
Varying fee structures
No crypto stablecoins
Beginner Friendliness
Both eToro and Robinhood are beginner friendly. The sign -up process is fast for both platforms and the user interface is easy to navigate for beginners.
eToro gets a slight edge because they offer copy trading, which allows new traders to copy the trading strategies of successful, more experienced traders. The trade-off here is that you must deposit at least $200 to get access to copy trading, but this is a fairly low barrier to entry for investors.
Trust & Security
eToro and Robinhood are both very trustworthy and secure platforms. eToro is compliant with CySEC, FCA, and ASIC regulations, while Robinhood protects securities and cash through the SIPC.
Neither platform has been hacked, though individual accounts have been accessed through phishing and other scams. eToro gets a slight nod here because it has never ceased any trading on its platform, whereas Robinhood has a history of doing such things.
Fees
When it comes to fees, Robinhood is the preferred option over eToro. Though Robinhood claims a zero-fee model for crypto trading, there is actually a 0.1% spread built into the prices you see on their markets. This is a competitive fee even when compared to a pure crypto exchange like Binance, which charges 0.1% for trading fees.
eToro charges different fees for each of the investment options they offer, but for crypto there is a 1% fee for buying or selling. A 1% flat fee is quite high compared to both Robinhood and traditional crypto trading platforms.
Sign-Up Process
The sign-up process for both eToro and Robinhood is ostensibly the same. Users must register an account and then complete know your customer (KYC) identity verification.
This is to help prevent money laundering and terrorist funding. The only difference is that eToro is available to countries other than the US, while Robinhood is available only to US residents. You must provide your social security number to sign up on Robinhood.
Available Cryptocurrencies
eToro is the clear winner when comparing the available cryptocurrencies between it and Robinhood. Robinhood only offers 11 crypto assets: Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Compound (COMP), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Polygon (MATIC), Shiba Inu (SHIB), and Solana (SOL).
eToro offers 66 different crypto coins and tokens, including all of the ones available on Robinhood. Other assets offered by eToro are: Cardano (ADA), ApeCoin (APE), Binance Coin (BNB), Gala (GALA), and Cronos (CRO). For a full list, check out their markets page. eToro also supports staking for ADA, ETH, and Tron (TRX). If you are looking for asset selection and the ability to earn passive income on assets, eToro is the better choice.
Standout Features
eToro best feature is that it supports deposits and withdrawals of cryptocurrencies. This is through the eToro Money wallet. Not all countries are eligible to withdraw crypto to the wallet though. Withdrawing crypto to the eToro Money wallet is the only way to withdraw crypto to an external wallet from eToro. Robinhood offers no deposit and withdrawals of crypto on its platform
Robinhood’s fee structure is its best feature for crypto, as 0.1% is competitive even with the best crypto exchanges. It is exponentially better than eToro’s, but with only 11 coins and tokens available, you may be suited better on eToro or a direct crypto trading platform.
CryptoVantage Verdict: eToro Better for International Trades
Which is better between eToro and Robinhood depends on two main factors: where you are located, and what you’re looking for with respect to crypto.
Any user outside the US will have to use eToro anyways, but US residents who want to be able to move their crypto and have higher selection will be better served there too. Robinhood is best for US residents who don’t want to do much crypto trading or moving.
eToro Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
