eToro vs Robinhood: Comparing the Two Crypto Exchanges

Posted by Frank Gogol

The market for online trading and investing is rapidly growing. There are numerous online brokers and platforms designed to bring a lot of young traders and investors to get their journey started. Given the option between the two, which is the right choice for you? Let us get deeper and compare both platforms and their features, pros, and cons to help you make your own choice.

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What is eToro?

eToro is an online platform for trading cryptocurrencies. It was launched in the year 2007 with the prime focus to make online trading accessible to everyone. It has a platform that focuses on revolutionizing the current trading platforms in the market.

What gives that edge over other competitors in the market is eToro’s copy trading and social-media concept, which allows its registered users to connect with other successful traders and follow the trends they are following.

Experience in trading is not a prerequisite for being successful on eToro. All you need is an account, and you’re set to trade. It is not sophisticated, and because it is simple and accessible, eToro has managed to gain over 12 million registered users from various places.

What is Robinhood?

After entering onto the scene in 2016, Robinhood promised to transform and revolutionize the trading market and provide investors with exceptional tools to learn and master the art of trading. It was built by two Stanford graduates. This platform mainly focuses on helping traders and investors buy and sell stocks. One of its attractive selling points was instigating zero commission charges on stocks and cryptocurrency trading.

The fact that it doesn’t charge commissions for cryptocurrency trading is its leading competitive edge.  Despite growing cost competition, Robinhood has built a strong brand and niche market among young, tech-savvy investors, thanks to a simple design and user experience that concentrates on the fundamentals.

Difference Between eToro and Robinhood

Both platforms provide services for traders and investors. They’re both popular online platforms designed for trading. However, in terms of features, eToro is much better compared to Robinhood. eToro has a better web and mobile platform, which helps its users customize and design their profiles to follow successful traders on the platforms. This feature is also known as copy trading. This social media aspect sets eToro apart and makes it unique.

Comparison of Features

eToro has a wide variety of features which gives the platform an edge over other trading platforms.

The main features of eToro, which attract a lot of traders online, include:

  • Employs zero commission for trading and investing. Also, it provides complimentary insurance
  • It has the edge over other platforms because of its interface, which allows its users to communicate and stay connected with over 20m registered users in over 140 countries
  • It provides a copy trading feature that allows its users to replicate portfolios of other successful traders. It is considered to be an iconic feature of eToro
  • eToro is a multi-asset platform that focuses on providing users access to stock and cryptocurrencies. It is regulated well and offers high standards

eToro has some additional features, which include:

  • The process of getting started is straightforward. Users get to use a demo account at the start
  • The interface is easy to navigate and can be customized while copy trading.
  • Helps users to get to know other successful traders online and thereby building a stronger community
  • eToro is easily accessible and has a web platform and a mobile app specifically designed to ensure the user experience is convenient and simple
  • It offers a good amount of cryptocurrencies to trade
  • It is regulated by renowned financial institutions, which indicates that eToro is safe and prioritizes protecting the assets of their registered users

Compared to eToro, Robinhood is slightly behind in communication and security features.

Features of Robinhood are:

  • Requires $0 to open an account and $200 for the premium gold account
  • Zero commission as an advantage
  • Has over 5000 markets for investors to trade
  • Provides stocks and cryptocurrencies
  • Regulated by FINRA and SEC in the US
  • Provides an easy and simple interface that helps traders in trading and investing

Pros and Cons of eToro and Robinhood

eToro and Robinhood have been around in the trading and investing market for a long time and have managed to earn the trust of millions of registered users over time. They’ve both been highly successful in helping young traders with no experience to flourish and gain expertise in the trading market by providing helpful tools and tips.

In terms of efficiency, both platforms have been proven to be better than the other platforms in the market. Let us list and compare their pros and cons individually to get a better idea.

Pros of eToro

  • Provides a platform that helps to socialize with other successful traders and allows them to customize their profiles to follow successful trends
  • Provides both web and mobile platforms in 26 languages
  • Provides better communication among traders to help each other out and build the community. It prioritizes the security of customers’ assets. eToro is highly transparent and is regulated by authentic financial institutions to ensure maximum safety and protection
  • Minimizes the likelihood of scams or frauds by depositing the funds in segregated accounts. It complies with FCA, CySEC, and ASIC standards to protect investors
  • Pioneers Anti-Money Laundering policies which make it even more secure
  • Provides guidelines to get accounts secured with a two-step verification process to prevent online hacking and fraud

Cons of eToro

  • A bit expensive compared to other platforms as it has high non-trading fees
  • Can improve deposit and withdrawal services as it includes a $5 withdrawal fee
  • Although it has decent customer support, which includes email and live chat supporting systems to help their customers to reach out to support teams concerning any security or functionality issue, it can still be improved

Pros of Robinhood

  • Robinhood is much cheaper compared to other platforms in the market. It is highly affordable, and you can start with almost nothing
  • It helps you trade easily, and experienced traders find it useful
  • It implements features such as cash management and recurring investment tools
  • Licensed and regulated by FINRA and SEC to ensure security

Cons of Robinhood

  • Limited product range
  • Below average interface and experience on the platform
  • Could work and improve on the customer service department. Only employs email support
  • Lack of educational resources and tools
  • Doesn’t provide transparency
  • Doesn’t provide maximum security and has been in the news for the past four years concerning many data breaches and hacks

Final Thoughts 

Weighing both aspects of eToro and Robinhood, eToro has the edge over Robinhood in almost every aspect of trading. With its reputation being tarnished regularly, Robinhood has been in the spotlight for its security and transparency concerns. eToro is most certainly a winner, especially when providing traders and investors who are new to the market and have practically zero knowledge.

It offers freedom to experiment and security to back up any issues that might happen during the process. It helps you socialize and communicate with other traders. This feature alone sets eToro apart from the many platforms that have been competing in the trading market. So, if you’re new and are looking to experiment and learn, eToro is highly recommended over Robinhood. Even though Robinhood is decent, eToro is way better in every way possible.


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