eToro vs Robinhood

Introduction

Which is the best broker, eToro or Robinhood? If you’re still undecided or not sure on which among these two brokerages to sign-up with' then this page is for you. Here you will see a side-by-side comparison of their features in detail so you can see their pros and cons. So are you ready to see the results? If you are, then continue reading to find out!

Comparison

Here's a quick side-by-side comparison of eToro vs Robinhood's essential features so you can have a clear overview on which categories they are strong and which ones they are inferior. This table is based on the most recent information we can find and is regularly updated.

Account Types

With eToro, you have the choice of opening an account as a retail or professional user. The retail account will only ask you for standard requirements such as your personal details and account verification documents and this is what most users sign-up for. Should you decide to open a professional account, you’ll be asked to have examination and go through an elective process to check if you are qualified for this category.

In addition, eToro has a tiered program called eToro Club that has premium perks and benefits which are based on the amount of realized equity. Currently, the club has the following levels:

• Silver
• Gold
• Platinum
• Platinum​+
• Diamond

This membership system however is not available for some countries due to regulation and the language of the platform. If your account is covered by this program, you will be able to see a link to the Club dashboard on the platform menu.

On the other hand, Robinhood also offers different account types for their clients and they can choose based on their investment goals and needs:

• Instant
• Gold
• Cash

The default account is the Robinhood Instant, which allows a maximum instant deposit of $1000. This is also a margin account.

The next level is the Robinhood Gold, which pretty much has the same features of Instant but comes with more buying power since there’s a higher cap for instant deposits. It also comes with margin investing which allows users to borrow funds that they can use for trading. This membership however has a monthly fee of $5.

Lastly, the Robinhood Cash is a downgraded version of the other 2 account types since trading with unsettled funds from any sold securities is not allowed and access to instant deposits higher than $1000 is not possible.

Demo Account

Here's the thing:
Traders often overlook demo accounts because they think that these are useless but the fact is that it serves as a good training ground especially for beginners and those who want to develop their trading strategies. And for those who have not experienced investing on a trading platform, the practice account is the best tool to get familiarized with the interface and layout.

The good news:
eToro has a demo account called “Virtual Portfolio” which is available for all of their clients. In addition, it does not have any expiry period so you can use this feature as many times and as long as you want if that can help you improve your trading skills and strategies. The practice account is preloaded $100,000 virtual balance and is easily accessible via the web-based platform or their mobile apps for iOS and Android.

Now the bad news:
Robinhood does not have any demo accounts for their clients. The only way that a beginner or any registered user can explore the platform is by opening an account and use the real trading environment. If you’re a newbie and have no idea how it works then your best bet is to read their help guides or by watching some demo videos in YouTube like this one.

Want to try out the demo?

Curious enough to try eToro’s demo account? You can quickly test it out simply by clicking the button below. Take note that you’ll be required to open an account but there’s no need to deposit any amount yet since you’ll only use the virtual portfolio. Once you've tested the demo and you've decide to proceed with live trading then that will be the time to make an initial deposit into your account.

77% 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.

Registration

For both brokers, you can quickly register for an account by opening their website on the web browser and entering the required details. Alternatively, you can register by downloading and installing their apps and then clicking on their sign-up buttons.

To open an account with eToro, a username, a password and an email address is initially required. Right after that, you'll be taken to their platform which you'll be free to explore or you can instantly switch to the demo should you decide to use this feature first. eToro accepts users from a lot of countries although there are a few exceptions such as Canada, China, Hong Kong, South Africa and others. You can click here to see the complete list.

Robinhood's sign-up process is also very straightforward. You'll only be asked for your first and last name, email address and password. Keep in mind that they only accept users who are US residents for now so if you're from another country, then you won't be able to open an account with this broker.

Look:
You probably noticed that the registration processes for both brands are easy and don't take long. Take note that this is just the initial process and you will still need to verify your account. Majority of brokerages, especially those that are licensed, are required to ask their clients to provide a few more personal additional details and proof of identity. It's a common practice that reputable brokerages do in compliance with their respective financial regulators.

Minimum Deposit

Should you decide to register with eToro and finally make the initial deposit, the minimum accepted amount will be dependent on your country of residence. First-time investors from the US and UK should only make a first deposit of $10. This is now lower compared to its previous mininum deposit requirement which was $50.

The minimum deposit requirement is just a little higher at $50 for those who are residents of Australia, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Guernsey, Hungary, Indonesia, Ireland, Italy, Latvia, Liechtenstein, Luxembourg, Malaysia, Malta, Monaco, Netherlands, Norway, Philippines, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, Vatican City and Vietnam.

Residents of other supported countries are required to make a first deposit of either $200 or $1000 so be sure to check this first so you would know if the specific minimum deposit requirement is okay with you.

What’s interesting with Robinhood is that there is no minimum deposit required so you can invest with a smaller amount and you can just add more funds later should you decide to trade more.

But there’s a catch:
If you’re going to sign-up for the Robinhood Gold, which is the margin account, the minimum deposit requirement is $2000 since you will be using leverage so take this into consideration if you’re thinking of trading with this broker and planning to use this specific account type.

Platforms

In general, eToro has 2 platform offerings: the web-based version and their mobile apps. The web-based platform can be quickly accessed via web browsers such Chrome, Firefox, Edge and Safari to name a few. You can use a desktop, laptop, tablet or smartphone as long there’s a web browser installed (it will most likely have one) so you can enter www.etoro.com on the address bar.

If you have a smartphone or tablet that’s powered by Android or iOS, then you also have the option of installing their mobile apps which have been optimized for touchscreen devices.

The other option is their mobile app that can be installed on smartphones and tablets running on Android or iOS (Apple). There’s no difference with the look and feel of these apps as compared to the web-based platform but since you’ll be using them on touchscreens, they have been optimized for these devices.

And whatever platform you decide to use, you’ll be able to access your account, invest on any of the markets they support and even use their copy trading feature.

The case is also the same for Robinhood, which also offers both web and mobile trading. These platforms are pretty basic though and but are more than enough for easily place trades. Risk management tools are also available as users can place market orders, limit orders, stop orders and stop limit orders. Keep in mind though that Robinhood does not offer copy trading services.

Spreads

There are 2 types of spreads: fixed and variable.

As the term suggests, fixed spreads are those that do not change whatever the condition of the market is. On the contrary, variable spreads are the types of spreads thaty change and this will be based on the current performance of the market so if there's volatility, then expect the spreads to be wider.

With eToro, the spreads that they provide are variable. That means assets that are susceptible to high volatility like cryptocurrencies will naturally have wider spreads than the more stable asset classes. In contrast, Robinhood’s spreads are fixed so these are calculated using a fixed rate and are not going to change. It doesn't matter if the market is going up, down or even sideways.

Keep in mind that both fixed and variable spreads have their own pros and cons depending on your trading needs.

Deposit

The more supported deposit methods, the better. It's as simple as that. And why is it so?

Picture this:
If you are given more ways to make a deposit then that would make it more convenient as compared to having just around 1 or 2 options. This may not be an important thing to consider from the start but if your primary or only payment provider suddenly decides to restrict you from funding your trading account then having other payment methods available will defintely be a big deal.

If you're going to trade with eToro, you will be able to make a deposit to your account via credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort Banking, bank transfer and local online banking. Keep in mind the some of these payment gateways may not be available in your country and its availability will also be based on the regulator that supervises your account.

With Robinhood, your only option to fund your trading account is via bank transfer. That's right. They don't even accept funding via credit/debit cards or any electronic payment systems like PayPal or Neteller. While bank transfer is a common payment method, having an alternative way to make a deposit still matters should there be any issues or sudden restrictions with your bank.

Withdrawals

When you take your money out from eToro the processing time takes only 1 business day given that you have all important documentation have already been sent to the proper department. In comparison, Robihood's withdrawal processing time is 2 trading days but there's an explanation why it's a little longer.

Here's the deal: Prior to processing your withdrawal request, Robinhood will need to settle the funds first before the sale funds will be allowed to be withdrawn. And if you decide to withdraw this to a different bank account rather than the initial bank account that you used when you made the deposit, the processing time may most likely take longer since you will probably be asked for more information.

Customer Service

With eToro, you will be able to contact the customer support department via email and live chat only. Unfortunately, there’s phone support is no longer available but most brokerages have already removed this option since going online is now the most common and convenient option.

In addition, there are more complementary options for those who want to learn or discover answers on their own such as opening a ticket or using the Help Center which features a diverse library of information.

As for Robinhood, your only option is email support. There's no way to get in touch with them via phone and the live chat option is also missing. If you're curious enough and would like to find possible answers to your questions then you might be able to find them on the Robinhood Support page.

Conclusion

Bottom line? eToro and Robinhood are 2 great options for online trading. Both are licensed brands and have a suite of investment platforms which can be easily accessed several supported devices. There are thousands of markets to explore so you'll have the opportunity to diversify your portfolio.

But here's the truth: Not all brokers are the same. While Robinhood has more tradable assets, eToro have more instrument types to offer and the unique social/copy trading feature makes it even more interesting especially for those who want to base their investment decisions on the experts and not by themselves.eToro also outshines Robinhood in the banking category as it supports more payment methods and is capable of processing withdrawals in a much shorter amount of time.

Both eToro and Robinhood have pros and cons but if you’re considering to be with a brokerage firm that has a better repuation and is offering diversified investment opportunities such as social trading then you should choose eToro.