Cash App vs. Robinhood

Cash App is best for simplicity and beginners, while Robinhood excels in offering a wider range of investment options and advanced trading tools.

When it comes to investing, both Cash App and Robinhood have made waves in the fintech world by making trading more accessible to the average person. Cash App simplifies the process, making it ideal for newcomers who want to invest without being overwhelmed. On the other hand, Robinhood offers a more comprehensive trading platform with a broader range of investment options and features, catering to those who want to explore beyond the basics. Let’s breakdown how these two platforms stack up against each other.

Cash App Investing vs. Robinhood: What’s the Difference?

When comparing Cash App and Robinhood, it’s clear that each platform serves a different type of investor. Cash App focuses on simplicity, allowing users to buy and sell stocks and Bitcoin with just a few taps. It’s integrated with Cash App’s broader financial services, making it an all-in-one platform for banking and investing.

On the other hand, Robinhood offers a more traditional brokerage experience with a wider array of investment options, including stocks, ETFs, options, and cryptocurrencies. Robinhood’s platform also includes features like margin trading, recurring investments, and advanced charting tools that appeal to more seasoned investors.

Account Types and Features

Cash App offers a straightforward brokerage account linked to your Cash App balance, allowing quick transfers between investing and spending. You can invest in stocks and Bitcoin, and Cash App also offers fractional shares, making it easy to start investing with minimal funds. Cash App lacks more advanced features like options trading or retirement accounts.

Robinhood provides individual taxable brokerage accounts with access to stocks, ETFs, options and cryptocurrencies. Robinhood’s platform includes features such as margin accounts through Robinhood Gold, commission-free trades and the ability to trade during extended hours. Robinhood offers a more robust trading experience with real-time data, customizable alerts and detailed market insights.

The Better Platform: Robinhood offers more account types and features, catering to a broader range of investor needs.

Commissions and Fees

Cash App charges no commissions on stock trades but does include small fees for Bitcoin transactions. There are no account minimums or subscription fees, making it accessible to everyone.

Robinhood also offers commission-free trades for stocks, ETFs and options. It provides a subscription service, Robinhood Gold, which costs $5 per month and offers benefits like access to margin trading, larger instant deposits and professional research.

The Better Platform: Robinhood slightly edges out with its comprehensive offering, though both are strong contenders in fee structure.

Investment Options

Cash App offers a limited selection of stocks and Bitcoin, suitable for those who want to keep things simple. There’s no access to bonds, options or a wide range of cryptocurrencies.

Robinhood provides a broader range of investment options, including stocks, ETFs, options and multiple cryptocurrencies. This makes it a better choice for investors looking to diversify their portfolios.

The Better Platform: Robinhood offers a more extensive range of investment options.

Mobile App and Trading Platforms

Both Cash App and Robinhood excel in a mobile-first design. Cash App’s interface is clean and intuitive, making it easy for beginners to navigate. Its functionality is limited compared to Robinhood, which offers a more robust mobile trading experience with advanced charting tools, customizable notifications, and research features.

The Better Platform: Robinhood provides a more feature-rich mobile app experience.

Ease of Use

Cash App wins in terms of ease of use, especially for those new to investing. Its interface is straightforward, with minimal clutter and a simple process for buying and selling stocks or Bitcoin. Robinhood, while still user-friendly, is more complex due to its additional features and tools, which may be overwhelming for absolute beginners.

The Better Platform: Cash App is easier for beginners, while Robinhood is better for those ready to handle more complexity.

Customer Support

Cash App offers customer support through the app, including phone options, but support response times can be slow.

Robinhood has faced criticism for its lack of customer support, though it has made improvements by adding 24/7 chat support, phone support 7 a.m. - 9 p.m. ET and email support for general inquiries. 

The Better Platform: Tie – both platforms could improve customer support offerings.

Educational Resources

Cash App provides basic investing tutorials and tips within the app, making it easy for beginners to get started. The educational resources are limited.

Robinhood offers more extensive educational content, including articles, podcasts, and the “Robinhood Snacks” newsletter, which provides daily market updates and investing tips.

The Better Platform: Robinhood provides more comprehensive educational resources.

Safety and Security

Both Cash App and Robinhood use encryption and biometric security measures to protect user data. Cash App is FDIC-insured through its bank partners, and investments are SIPC-protected. Robinhood is also SIPC-protected and offers two-factor authentication for added security.

The Better Platform: Tie – both platforms offer strong security measures.

Which Is the Better Platform?

In the battle between Cash App and Robinhood, Robinhood emerges as the better platform for investors looking for a broader range of investment options, advanced trading tools, and educational resources. Cash App is a solid choice for beginners or those who prefer a simple, integrated financial app that easily combines spending and investing. Ultimately, the best choice depends on your investing needs and experience level.

Alternative Brokers to Consider

If neither Cash App nor Robinhood fully meets your needs, consider exploring other brokers like Webull for more advanced trading tools or M1 Finance for a combination of automated investing and customization.

Frequently Asked Questions