User-Friendly Platform Educational Resources Social Trading Features
Wikitoro author Nick Zelver Written by Nick Zelver
Wikitoro fact checker Mike Druttman Fact checked by Mike Druttman
Updated Feb, 2024

Getting Started

Are you torn between eToro and Robinhood as your go-to brokerage platform? I've been there too, and I know the struggle of making that choice. That's why I've created this comprehensive comparison, drawing from my personal journey in navigating the intricacies of both platforms.

In the following sections, you'll find an in-depth, side-by-side comparison of eToro and Robinhood. I'll delve into the nitty-gritty of their features, highlighting the strengths and weaknesses of each. This isn't just a dry rundown of facts; it's an account fueled by actual usage and a deep understanding of what traders like you and I need. So, if you're ready to uncover which broker aligns best with your trading style and needs, let's dive in and explore together!

Here's an updated and detailed comparison of eToro and Robinhood, showcasing their key features to help you make an informed decision. This comparison is based on the latest available data and I regularly revise this to ensure accuracy.

Side-by-side comparison of eToro vs. Robinhood
 eToroRobinhood
๐Ÿข Founded20072013
๐Ÿ“ˆ Market TypesStocks, Commodities, Currencies, Indices, Crypto, ETFsStocks, ETFs, Options, Crypto, ADRs
๐Ÿ›๏ธ Markets5,000+5,000+
๐Ÿงพ FeesVaries by region; includes spread fees and withdrawal feesLow trading fees, but varies for different transactions
๐Ÿ”’ Security Features2FA, SSL encryption2FA
๐Ÿ“Ÿ Demo Account
โœ”๏ธโŒ
๐Ÿ‘ WalleteToro WalletNo separate wallet, but cryptocurrency trading available
๐Ÿ’ฐ Minimum Deposit
$10-$200 (depends on your country)$0
๐Ÿ’ณ Deposit Methods
Credit/Debit Card, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, Bank Transfer, Local Online BankingCredit/Debit Card, Bank Transfer, Crypto
๐Ÿ’ธ Withdrawal Fees$5None
๐Ÿ›๏ธ RegulationFCA (UK), CySEC (Cyprus), ASIC (Australia), USA (FinCEN)SEC (USA), FINRA (USA)
๐Ÿ’ Customer SupportEmail, Live ChatPhone, Email, Live Chat
๐ŸŽ“ EducationeToro AcademyRobinhood Learn
๐ŸŒŸ Unique FeaturesSocial trading platform, CopyTrading feature Simple, streamlined trading platform
๐Ÿ“ฑ Mobile AppAndroid, iOSAndroid, iOS
๐Ÿ“ˆ Leverage Tradingโœ”๏ธโŒ
โš™๏ธ API Supportโœ”๏ธโŒ
๐Ÿ’ฐ Stakingโœ”๏ธโŒ

 

Explore eToro!

76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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Account Types Comparison

eToro's Account Options

eToro offers two primary account types: Retail and Professional. The Retail account is straightforward, requiring only your personal information and verification documents. This is the most common choice for users. For those opting for a Professional account, a more rigorous process, including an examination and an eligibility check, is required.

eToro also features an exclusive tiered program known as the eToro Club. This club offers premium benefits and is categorized into several levels based on your realized equity: Silver, Gold, Platinum, Platinum+, and Diamond. However, this program is not available in certain countries due to regulatory and language limitations. Eligible users can access the Club dashboard directly from the platform's menu.

Robinhood's 3 Offerings

Robinhood provides three distinct account types to cater to varied investment goals: Instant, Gold, and Cash:

  1. The default is the Robinhood Instant account, which is a margin account with a maximum instant deposit limit of $1,000.
  2. The Robinhood Gold account extends the features of the Instant account, offering increased buying power with a higher instant deposit cap. It also includes margin investing, allowing users to trade with borrowed funds. This account has a monthly fee of $5.
  3. Lastly, the Robinhood Cash account is a more basic option compared to the other two. It restricts trading with unsettled funds from sold securities and limits access to instant deposits over $1,000.

 

Demo Account Insights

Let's talk about demo accounts, an often underestimated yet invaluable tool for traders. As someone who has navigated the tricky waters of trading, I can't stress enough the importance of a good practice platform, particularly for beginners or those refining their trading strategies. A demo account is more than just a playground; it's a critical space for learning and experimentation, away from the real-world pressures of the market.

eToro's Virtual Portfolio

eToro shines in this aspect with their “Virtual Portfolio” – a feature-rich demo account accessible to all clients. There's no expiration date on this offering, meaning you can hone your skills at your own pace. I've found this incredibly liberating. You're greeted with a $100,000 virtual balance, which is a generous amount to experiment with various strategies. The best part? It's seamlessly integrated into both their web-based platform and mobile apps for iOS and Android, ensuring a flexible and user-friendly experience.

Robinhood's Approach

On the flip side, Robinhood takes a different path. They do not offer a demo account, which, in my view, is a notable gap for beginners. The only way to get a feel of Robinhood's platform is by diving straight into the real trading environment. This can be daunting for newcomers. However, it's not all bleak. There's a workaround – educating yourself through Robinhood’s help guides or exploring third-party demo videos on platforms like YouTube. While not ideal, these resources can offer some insights into navigating the platform.

In conclusion, while eToro provides a robust and risk-free environment for skill development, Robinhood leaves you to learn in the live market, which can be more challenging for those new to trading.

 

Navigating the Registration Process

Registering for an eToro or Robinhood account is a streamlined and user-friendly experience. I've gone through both, and here's a breakdown to guide you through the process.

eToro Registration

Opening an account with eToro is a breeze. Start by visiting their website or downloading their app. The initial sign-up requires just a username, password, and email address. Once done, you’re immediately taken to their platform. You have the option to explore or jump straight to their demo account to test the waters. eToro is quite inclusive, welcoming users from numerous countries. However, there are exceptions like Canada, China, Hong Kong, and South Africa, among others. For a comprehensive list of eligible countries, a simple click on their website provides all the details.

Robinhood’s Approach

Robinhood’s registration process mirrors this simplicity. You need to provide your first and last name, email address, and create a password. A crucial point to note – Robinhood currently caters exclusively to U.S. residents. So, if you’re residing outside the U.S., you won’t be able to open an account with Robinhood.

A Word of Caution

The ease of registration with both eToro and Robinhood is commendable. However, remember, this is just the first step. Subsequent account verification is mandatory. As a standard regulatory requirement, you’ll need to provide additional personal details and identity proof. This is a common and necessary practice among reputable brokerages to comply with financial regulations. It’s a measure of security and legitimacy, ensuring a safe trading environment for everyone involved.

 

Understanding Minimum Deposit Requirements

Navigating the minimum deposit requirements for eToro and Robinhood is a key step in your investment journey. I've delved into this aspect for both platforms, and here's what I've found:

eToro’s Minimum Deposit

For eToro trading, the minimum deposit amount varies based on your location. If you're in the US, the threshold for your initial deposit is a mere $10 – a significant reduction from the previous $50 requirement. This makes eToro more accessible to a broader range of investors, especially those just starting out. For UK residents, the minimum deposit is slightly higher at $50. Other supported countries have varying requirements, typically set at either $200 or $1,000. It's crucial to check eToro's specific deposit requirements for your country before proceeding, ensuring it aligns with your financial capabilities.

Robinhood’s Flexible Approach

Robinhood stands out with its zero minimum deposit policy for its standard accounts. This feature is particularly appealing if you’re looking to start small and increase your investment over time. It offers a low barrier to entry for novice traders or those cautious about investing large sums initially.

The Robinhood Gold Consideration

However, if you opt for Robinhood Gold – the platform’s margin account – there’s a catch. The minimum deposit jumps to $2,000. This higher requirement is due to the nature of margin trading, where you’re essentially trading with borrowed funds. It’s a critical factor to consider if you’re contemplating using Robinhood Gold, as it involves a higher level of risk and investment.

In summary, while eToro's minimum deposit varies by region, Robinhood offers a no-minimum entry point for standard accounts, with a higher threshold for its margin trading option. Understanding these requirements is essential in aligning your trading strategy with your financial goals.

 

Exploring the Platforms

Understanding the platform offerings of eToro and Robinhood is crucial for a smooth trading experience. Here’s a detailed look at what each broker provides:

eToro’s Platform Options: Web and App

eToro offers two primary platforms: a web-based version and mobile apps.

  1. The web platform is easily accessible through any standard web browser like Chrome, Firefox, Edge, or Safari. Whether you’re using a desktop, laptop, tablet, or smartphone, as long as you have a browser, you can navigate to www.etoro.com and start trading.
  2. For mobile users, eToro has developed apps optimized for Android and iOS devices. These apps mirror the functionality and aesthetics of the web platform but are tailored for the convenience of touchscreen use.

Regardless of the platform you choose, eToro ensures seamless access to your account, the ability to invest in various markets, and the unique feature of copy trading.

Robinhood’s Approach to Trading Platforms

Like eToro, Robinhood also offers both web and mobile trading options. These platforms are designed to be straightforward and user-friendly, catering well to those who prefer a no-frills trading experience. They provide essential tools for placing trades, including various order types like market, limit, stop, and stop limit orders.

However, it’s worth noting that Robinhood does not offer a copy trading feature. This could be a deciding factor for traders who prefer that functionality. Overall, both brokers ensure that their platforms are accessible and functional across various devices, catering to the diverse needs of their user base.

 

Diving Into the Asset Offerings

When it comes to trading, the diversity of accessible assets is key to building a robust investment portfolio. Let's compare the asset offerings of eToro and Robinhood to understand how they can cater to your diversification needs.

eToro’s Diverse Asset Range

eToro stands out with its impressive array of over 5,000 tradable instruments. This range not only offers breadth but also depth, as they continually expand their offerings. On eToro, you can trade in a diverse mix of stocks, commodities, currencies (forex), indices, cryptocurrencies, and ETFs. However, for US residents, the options are slightly limited to cryptocurrencies, US stocks, and ETFs due to regulatory restrictions. This expansive selection allows for significant diversification, enabling you to explore a wide array of markets and investment opportunities.

Robinhood’s Asset Selection

Robinhood, on the other hand, boasts a portfolio of over 5,000 assets. This includes a variety of stocks, options, commodities, and cryptocurrencies. However, it's important to note that Robinhood does not offer trading in indices, forex, or ETFs. While the asset count is high, the lack of these specific markets could be a limitation for traders looking to diversify into those areas.

The Benefits of a Diverse Asset Portfolio

Having access to a broader range of assets is crucial. It allows you to venture beyond the typical stocks or currency pairs, giving you greater control over your investment choices. Whether you're looking to buy or sell across different markets, a broker with a vast asset pool can significantly enhance your trading strategy and portfolio diversification.

In summary, both eToro and Robinhood offer a substantial number of assets, but their offerings differ in terms of variety and market coverage. This difference could be pivotal in deciding which broker aligns best with your investment goals and strategy.

 

Understanding Spreads

Spreads are a critical aspect of trading, impacting your potential profits. There are two main types: fixed and variable. Let's explore how eToro and Robinhood handle spreads and what this means for you as a trader.

Fixed vs. Variable Spreads

Fixed spreads remain constant regardless of market conditions. They offer predictability, as you know the cost of the spread in advance. In contrast, variable spreads fluctuate based on market dynamics. During periods of high volatility, variable spreads tend to widen, reflecting the increased risk.

eToro’s Variable Spreads

eToro operates with variable spreads. This approach means that for assets prone to high volatility, like cryptocurrencies, the spreads will be broader compared to more stable asset classes. The variable nature of eToro's spreads can be advantageous in a stable market but might increase costs during turbulent periods.

Robinhood’s Fixed Spreads

On the other hand, Robinhood uses fixed spreads. This fixed-rate approach provides consistency in trading costs, irrespective of market movements. Whether the market is bullish, bearish, or stable, Robinhood's spreads remain unchanged. Fixed spreads can be beneficial for planning and budgeting your trades, offering a sense of security in costs.

Choosing Based on Your Needs

Both fixed and variable spreads have their advantages and drawbacks, and your choice will depend on your trading strategy and risk tolerance. If you prefer predictability and consistency in trading costs, fixed spreads like those offered by Robinhood might suit you better. However, if you're looking to capitalize on market stability and potentially lower costs during such times, eToro’s variable spreads could be more appealing.

In conclusion, understanding the type of spreads offered by your broker is crucial in aligning your trading practices with market conditions and your individual trading goals.

 

Deposit and Withdrawal Processes

Navigating the deposit and withdrawal options in trading platforms is essential for a smooth trading experience. Here's a closer look at what eToro and Robinhood offer in terms of funding and cashing out your investments.

 

Deposit Methods

Having a variety of deposit methods is more than just a convenience; it’s a necessity. Imagine being restricted by your primary payment provider from funding your trading account. The availability of alternative deposit methods can be a game-changer in such situations.

eToro’s Deposit Options

eToro offers multiple ways to deposit funds, including credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, bank transfers, and local online banking. However, the availability of these methods depends on your location and the regulatory body governing your account. This diversity in deposit options caters to a wide range of preferences and needs.

Robinhood’s Limited Approach

Robinhood, in contrast, limits deposits to bank transfers. They do not support credit/debit card funding or e-wallets like PayPal or Neteller. While bank transfers are widely used, the lack of alternative deposit methods can be a limitation, especially in scenarios where you encounter issues with your bank.

 

Withdrawal Processes

The efficiency of withdrawing funds is as crucial as deposit options.

eToro’s Withdrawal Time

eToro processes withdrawals within 1 business day, assuming all necessary documentation is in order. This quick turnaround is a significant advantage for traders looking to access their funds promptly.

Robinhood’s Withdrawal Timeline

Robinhood’s withdrawals take a bit longer, typically around 2 trading days. This delay is due to the need to settle funds before they can be withdrawn. Additionally, if you opt to withdraw to a different bank account than the one used for deposits, expect a longer processing time as further verification may be required.

In summary: while eToro offers a variety of deposit methods and swift withdrawals, Robinhood provides a more limited deposit option and a slightly longer withdrawal process. Understanding these facets is key in choosing a platform that aligns with your financial management preferences.

 

Exploring Customer Service Options

Effective customer service is crucial in the trading world, especially when dealing with complex financial transactions. Here's a detailed look at the customer service options provided by eToro and Robinhood.

eToro’s Customer Support

eToro offers support through email and live chat, aligning with the trend of online-based customer assistance. Although phone support is not available – a common shift in the brokerage industry – these digital options are generally more convenient and efficient for addressing queries and issues.

Additionally, eToro enhances its customer support with self-help options. These include submitting a ticket for more detailed inquiries and accessing their Help Center, which is a treasure trove of information covering a wide range of topics. This comprehensive approach caters to different user preferences, from those who want direct assistance to those who prefer self-guided problem-solving.

Robinhood’s Support Approach

On the other hand, Robinhood has a more diverse approach, offering customer support via phone, email and live chat.  However, for users comfortable with self-service, the Robinhood Support page provides a variety of resources and answers to common questions. This can be a valuable tool for independently resolving issues or gaining a better understanding of the platform.

In summary, while Robinhood offers a more diverse range of customer service options, eToro relies on email and live chat support complemented by an informative help page. This difference in service levels and options could influence your decision on which platform best suits your needs, particularly if direct and varied forms of support are important to you.

 

Regulatory Compliances

When choosing a broker, regulatory compliance is a non-negotiable aspect, as it ensures the safety and security of your investments. Let’s examine the regulatory landscape for eToro and Robinhood to understand how they stand in terms of compliance and client fund safety.

eToro’s Regulatory Credentials

eToro operates under multiple regulatory frameworks, reflecting its commitment to compliance and security. As of the latest information, eToro holds the following licenses:

  1. Cyprus Securities & Exchange Commission (CySEC): eToro (Europe) Ltd. is registered under company number HE20058.
  2. Financial Conduct Authority (FCA): eToro (UK) Ltd. is authorized and regulated, with registration number 7973792.
  3. Australian Securities and Investments Commission (ASIC): eToro AUS Capital Pty Ltd. holds an Australian Financial Services Licence (AFSL 491139).
  4. Financial Crimes Enforcement Network (FinCEN): In the United States, eToro is registered with FinCEN and various state-level regulators. This ensures they adhere to U.S. regulatory guidelines and are permitted to operate within the country.

Robinhood’s Regulatory Status

Robinhood also maintains a strong regulatory presence, with registrations and licenses from key financial authorities:

  1. Financial Industry Regulatory Authority (FINRA): Robinhood Financial LLC is a regulated broker-dealer (CRD# 165998). Notably, they incurred a significant fine of approximately $70 million on June 30, 2021, from FINRA for misleading customers, marking the largest penalty ever imposed by the organization.
  2. U.S. Securities and Exchange Commission (SEC): Robinhood Financial LLC is registered (SEC# 8-69188).

Key Takeaway on Regulation

Both eToro and Robinhood are licensed and regulated entities, providing a level of assurance regarding their compliance with financial standards and protocols. However, it’s important to be aware of any past issues they’ve had with regulators, such as Robinhood’s substantial fine from FINRA. This information is crucial for an informed decision about which broker aligns better with your trading needs and preferences for security and regulatory compliance.

 

Conclusion: Weighing eToro vs Robinhood for Your Trading Needs

In the realm of online trading, eToro and Robinhood stand out as two formidable options. My journey through the intricacies of both platforms has given me a firsthand look at what each offers, allowing me to share these insights with you.

  • A Comparative Overview: eToro and Robinhood are both licensed entities, offering a robust range of investment opportunities across thousands of markets. This breadth allows for significant portfolio diversification, a crucial aspect of modern trading.
  • Distinguishing Factors: However, it’s important to recognize the distinct features and offerings of each platform. Robinhood boasts a larger array of tradable assets, but eToro offers a more diverse range of instrument types. What sets eToro apart is its unique social and copy trading features. This facet of eToro is particularly appealing to those who prefer to lean on the expertise of seasoned traders rather than making investment decisions in isolation. Furthermore, eToro excels in the banking and transactional sphere, supporting a wider array of payment methods. It also impresses with its more efficient withdrawal processing times. These practical benefits can significantly enhance your trading experience.
  • Choosing the Right Platform: Both platforms have their strengths and weaknesses. If your priority is a broker with a solid reputation, offering diverse investment opportunities, especially in social trading, eToro could be your go-to choice. It aligns well with those seeking a comprehensive trading experience, where learning from and interacting with others forms a part of the investment journey.

The bottom line?

Your choice between eToro and Robinhood should hinge on what aspects of trading matter most to you. Whether it's the range of assets, ease of transactions, or unique features like copy trading, your decision should align with your investment goals and trading style.

 

 

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.

Wikitoro author Nick Zelver About Nick Zelver

Nick is the Senior Content Editor at Wikitoro.org with over 15 years in online marketing. A graduate of Toronto Metropolitan University, he has strategized for More Sales Inc. and led online sales at GlassesUSA.com. His journey through digital marketing, e-commerce, and account management has equipped him with a unique perspective. Every article he pens is infused with his real-world experiences, aiming to guide and inform readers.

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