eToro vs. Robinhood: Which is Better in 2024?

Want to jump straight to the answer? eToro is better for altcoin offerings and currently giving a $10 sign up bonus to new users, while Robinhood is better for novice traders focused on less tokens but very intuitive interface.

Between the cryptocurrency brokerages offered to investors, it can be frustrating to discern the different features they provide. Here is a breakdown of eToro and Robinhood Markets Inc. (NASDAQ: HOOD) to help with that process. 

eToro is a social trading, multi-asset brokerage company that focuses on providing financial and copy trading services for its users. Robinhood is an online discount brokerage that offers a commission-free investing and trading platform.

eToro vs. Robinhood: Overview

eToro and Robinhood are online trading platforms that allow users to trade stocks, cryptocurrencies and options without paying commissions. Both platforms are suitable for newbies and experienced investors, but they have differences in their features, offerings and customer support.

What Is eToro?

eToro is an online discount broker founded in Israel in 2007. With more than 30 million users from over 100 countries, eToro offers a wide range of investment options, such as stocks, exchange-traded funds (ETFs), cryptocurrencies and options trading. The platform is attractive to crypto enthusiasts looking for commission-free trading and a lively social investing community, thanks to innovative features such as CopyTrader and eToro Club. Also, eToro allows for fractional share purchases, theme-based smart portfolios and fee-free options trading. This makes it a one-stop shop for investors interested in day trading or longer-term strategies.

What Is Robinhood?

Stanford University graduates Baiju Bhatt and Vladimir Tenev founded Robinhood in 2013 with the aim of democratizing investing and making it available to everyone. To do so, they pioneered commission-free trading in 2013, which has now become a widespread industry practice. Robinhood is a commission-free app-based brokerage firm with simple and user-friendly functionalities that appeal to tech-savvy investors who don’t need mutual funds, bonds or advanced order types. Robinhood also offers Robinhood Gold, which provides margin trading and premium market data. Its feature-rich platform appeals to a wide range of investors, including those interested in penny stocks, American Depository Receipts (ADRs) and options trading.

eToro vs. Robinhood: Features and Tools

Although eToro and Robinhood offer commission-free trading for various assets, they differ in their additional functionalities.

What eToro Offers

eToro offers a comprehensive suite of features and tools for traders and investors.

• Trading platform: eToro provides a user-friendly and intuitive trading platform where users can trade over 5,000 instruments across various asset classes, such as stocks, cryptocurrencies, commodities and currencies. Users can access advanced tools such as customizable charts, indicators and risk management features.
• Copy trading: With eToro's innovative CopyTrader™, users can automatically replicate the trading moves of other investors in real-time. This feature enables users to find and follow investors matching their risk appetite, investment goals and trading style, allowing them to mirror their actions with a click.
• Investment portfolios: eToro offers a range of pre-built and professionally managed portfolios catering to different strategies and markets. Users can invest in portfolios such as CopyPortfolios, which track the performance of top investors or market segments, or Smart Portfolios, designed to optimize returns and minimize risk.
• eToro Money: eToro Money is a digital wallet and payment service that enables users to store, send and receive crypto and fiat currencies. Users can also request a debit card linked to their eToro Money account to help with global purchases and withdrawals.

What Robinhood Offers

Here are some of the features and tools that Robinhood offers.

• Investing options: Robinhood offers commission-free trading of stocks, options and ETFs, allowing users to start with as little as $1. Investors can build their portfolios at their own pace and access real-time market data and news.
• Premium subscription for Robinhood Gold: This service provides access to more buying power, margin investing and higher interest rates on uninvested cash. Subscribers can also earn up to 3% extra on contributions to their Individual Retirement Accounts (IRAs).
• Crypto trading: Users can buy, sell and transfer cryptocurrencies without commission fees. Supported assets include Bitcoin, Ethereum, Dogecoin and more. Additionally, users can track the prices of various digital assets and explore the crypto market.
• Retirement accounts: Robinhood offers with tax advantages, including Traditional and Roth IRA options. Users can open IRA accounts, roll over existing 401(k)s or IRAs and enjoy a 3% bonus on transfers and rollovers with Gold.
• Robinhood cash card: A debit card enabling users to invest while spending. It offers cash back on purchases, ATM withdrawals from over 75,000 locations and bill payment with a Robinhood Money spending account. Customization options for the card's design and color are available.
• Robinhood wallet: This Web3 wallet empowers users to own and control their crypto, non-fungible tokens (NFTs) or decentralized applications (dApps). Users can securely store digital assets, send and receive crypto and explore the decentralized web.
• Robinhood Learn: Investors can access educational resources like articles, videos, podcasts and quizzes covering financial topics. The Robinhood Snacks newsletter and podcast offer daily market updates.
• Platform features: Robinhood provides a user-friendly platform with simple navigation and customization options. It offers real-time streaming stock quotes from the Nasdaq exchange. Additionally, while Robinhood lacks staking or rewards for holding crypto, it offers margin accounts and IRAs for other investments. 
• Access to foreign investments: Although Robinhood offers fewer cryptocurrencies than eToro, it provides access to hundreds of foreign companies via ADRs.

eToro vs. Robinhood: Coin Selection

One of the main differences between eToro and Robinhood is the number and variety of cryptocurrencies they support. Here is a comparison of their coin selection.

eToro Coin Selection

eToro users can explore a selection of over 70 popular coins, including Bitcoin, Ethereum, Solana and XRP, along with a variety of altcoins. They can view the price, performance and market cap of each coin, as well as the technical analysis indicators and the trending coins among other investors. Customers from the United States though will only be allowed to trade Bitcoin (BTC), Bitcoin Cash (BCH) and Ether (ETH) after its settlement agreement with the Securities and Exchange Commission (SEC).

eToro also enables trading in crypto pairs (Crypto Crosses), which allows speculation on price movements between different cryptocurrencies without direct ownership.

For those seeking diversified exposure, eToro's CryptoPortfolios present an attractive option. These portfolios, managed by seasoned professionals, offer a curated selection of crypto assets, allowing users to follow established strategies and spread risk effectively. 

eToro recently launched its NFT platform, where users can discover, buy, sell and collect digital art and collectibles. Users can also create their NFTs and showcase them to the eToro community.

Robinhood Coin Selection

Robinhood currently offers commission-free trading in 15 cryptocurrencies, including options like Bitcoin, Ethereum, Dogecoin, Cardano and Solana. However, availability varies by state and may require regulatory approval. Robinhood does not offer crypto portfolios or funds, but it does provide access to hundreds of foreign companies via ADRs. Although Robinhood boasts free trading, users should be mindful of the wide spreads between bid and ask prices. 

Although eToro has a larger and more diverse selection of cryptocurrencies than Robinhood, Robinhood may appeal to investors who want to trade crypto for free or diversify their portfolio with foreign stocks.

eToro vs. Robinhood: Cost and Pricing

Before choosing a cryptocurrency exchange, consider and compare the fee structure to maximize profitability.

eToro Fees

Deposit and withdrawal fees: eToro doesn't charge deposit fees, making it convenient for users to fund their accounts. However, there's a flat $5 fee for withdrawals, and a minimum withdrawal amount of $30 applies. 

Conversion fees: For deposits and withdrawals involving currencies other than USD, eToro applies conversion fees. These fees vary depending on the currency pair, ranging from 0.5% to 2.5%. 

Trading fees: eToro's trading fees differ based on the asset class and type of trade. When trading stocks and ETFs, there's no commission charged, providing a cost-effective option for investors. However, a 1% trading fee is applied for cryptocurrencies, calculated based on the spread between buy and sell prices. Commissions apply when trading contracts for difference (CFDs).

Inactivity fee: eToro enforces a $10 monthly fee for accounts that remain inactive for 12 months or more. 

Robinhood Fees

Trading fees: Robinhood does not charge fees for trading stocks, ETFs, options and cryptocurrencies. Users can trade these assets without commission or spread charges, making it a cost-effective option for investors.

Additional charges: Robinhood doesn't impose annual, inactivity or ACH transfer fees. However, users should note a $100 ACAT outgoing transfer fee for transferring securities to another broker.

Premium service - Robinhood Gold: For a monthly fee of $5, users can access Robinhood Gold, which offers benefits like margin trading, larger instant deposits and professional research reports.

Other potential fees: Robinhood may pass on certain fees from third parties, including regulatory, wire transfer and paper statement fees. These fees vary depending on the transaction and the amount involved.

eToro vs. Robinhood: Usability

Apps typically focus on user experience to attract customers. Here’s how customers discuss the usability of the app.

eToro User Experience

eToro has had complaints on social media about its mobile user interface and user experience, though the tradeoff for having more features sometimes can be a clunkier interface.

Robinhood User Experience

Robinhood users have applauded its clean user interface adapted to mobile. It offers a modern, simple experience that beginners can navigate.

eToro vs. Robinhood: Security Features

Protecting users from unauthorized access is a critical feature. 

eToro Security Measures

eToro encourages the use of two-factor authentication to increase account security. Client funds are secured at top-tier banks, and eToro keeps personal information SSL-encrypted. 

Robinhood Security Measures

Robinhood offers a guarantee to cover 100% of direct losses from unauthorized account activity as long as you follow a few standard security practices. You can’t share account details, give anyone access to your device or open suspicious links. Robinhood provides two-factor authentication and uses encryption for privacy. 

eToro vs. Robinhood: Customer Support

Customers need to have a quick and easy way to get support. eToro has chatbots 24/7 and live chat from Monday to Friday 8 a.m. to 8 p.m. Inquiries via the customer service ticket will receive a response within 48 business hours.

A live agent from Robinhood customer service is available by phone or chat. However, online Trustpilot reviews for Robinhood pale in comparison to eToro, with a 1.3 rating vs. 4.3 review for eToro. This suggests that Robinhood needs to work on its customer service.  

Trade with Ease

When you’re looking for the best cryptocurrency broker, you’ll need to perform a deep dive into the pros and cons. Both eToro and Robinhood offer easy online access to crypto, stocks and options. eToro stands out for its copy trading features, but it cannot offer CFD trading in the U.S. and users complain about its high bid-ask spread costs. Robinhood has a user-friendly interface that makes it easy and commission-free to trade. Its SIPC membership also means that client securities and cash up to $500,000 ($250,000 limit for cash) are protected if Robinhood goes under.