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Etoro vs Robinhood
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eToro vs Robinhood: Which Trading App Is Better

If you're new to the world of online trading, the thought of choosing a platform can be daunting. There are so many options available, each with its own set of pros and cons. Two of the most popular choices are eToro and Robinhood. While they both cater to beginners, eToro is geared towards traders interested in social trading (that is, copying trades of other investors) and zero-commission stock trading, whereas Robinhood is recommended for buy-and-hold investors with a complete focus on the US stock market. So, which one is best? eToro or Robinhood? In this eToro vs Robinhood comparison, we'll find out.

About eToro

eToro is a social trading broker which is regulated by leading industry entities like Australia's ASIC or the UK FCA. eToro is the latest in a long line of online trading exchanges, but it offers something no other site does: virtual trading. You can practice your skills and see what trades professional investors make before opening an actual position!

It also provides CopyTrader — a feature that lets users "copy" buy/sell orders from other members, so they don't have to wait around for their own trade ideas or try catching those memorable moments when everyone's talking about stocks at once. Lastly, there's a mobile app available if investing while out running errands becomes too much work.

eToro offers access to two platforms, the desktop and mobile app. The former is for more serious traders who want access to trading signals as well as complex features such as an integrated watchlist. It also supports market orders on all supported currencies in addition to Bitcoin (BTC). On top of these basic functions, there's a dynamic but customizable interface that should appeal to more experienced traders.

About Robinhood

Robinhood is a zero-commission broker based in the US that is regulated by FINRA (Financial Industry Regulatory Authority). With Robinhood, you can start with as little as $1 to invest. This is a great opportunity for novice traders who want to get familiar with investing without risking the hard-earned money! You can start small and build up your portfolio as you learn more about what works best in these markets without having any large losses or gains that could send you into panic mode!

Robinhood is the best place to trade crypto without all of those pesky fees. The mobile app makes it super easy and intuitive, with live news feeds for each coin in their arsenal! Plus, you can see charts that give an excellent representation of what's going down right now-perfect if your around-the-world trading needs are a little more time-sensitive.

eToro vs Robinhood: Fees

When it comes to eToro vs Robinhood comparison, the fee is one area that needs to be considered.

PricingRobinhoodeToro
Maximum Trading Amount (Daily)Unlimited$2M
Withdrawal FeesNone0.1% - 0.75%
Minimum Deposit$1$200

eToro vs Robinhood: What You Can Trade

Both eToro and Robinhood have been designed keeping in mind the investors who want exposure to more than just one market.

eToro offers access to Stocks, CFD, Forex, Crypto, and ETFs from more than 20 countries. eToro's platform also provides a social trading feature, which allows investors to copy the trades of other eToro users.

You can trade CFDs (Contract for Difference) on assets that give you exposure without having to actually own the underlying asset. This is perfect if you're not sure about a particular market or just want to try out a new investment strategy. Moreover, you can opt for ETF if you are planning to diversify your portfolio. Apart from CFD and ETF, you can opt for forex trading, stock market trading, and cryptocurrency trading.

Robinhood also allows you to invest in multiple markets such as Stocks, Options, CFD, ETFs. However, it doesn't offer CFD trading as eToro does. Robinhood is designed for buy-and-hold investors who are looking for long-term growth opportunities in the US stock market only.

Options trading is available on Robinhood, and it offers a limited number of stocks to trade. You can also invest in ETFs that track major indices, like S&P 500 or Nasdaq-100. Options trading is beneficial for investors who want to speculate on the price of security without having to own the underlying asset.

Security

The security of the trading platform can be a major concern for investors. eToro is a regulated broker, and it is registered with CySEC (Cyprus Securities and Exchange Commission) and FCA (Financial Conduct Authority). eToro also has an insurance policy that covers all customer funds up to $20 million.

Robinhood doesn't have the same regulatory framework as eToro, but it is insured by the SIPC (Securities Investor Protection Corporation), which protects clients' securities up to $500,000. However, Robinhood doesn't offer the social trading feature as eToro does.

eToro is a social trading platform that takes privacy seriously. It has firewalls to protect user information and data encryption technology and 2-factor authentication options where you can set your phone or watch to be remembered for 30 days in case of emergencies!

Robinhood is committed to keeping your information safe and secure. They use 2-factor authentication, including biometric facial recognition, which means they monitor trusted devices for a match confirming it's you!

FeatureRobinhoodeToro
Investor protection amount$500,000 (securities up to $500,000, cash up to $250,000)£85,000 for UK residents, €20,000 for non-UK residents
Banking backgroundNoneNone
Listed on stock exchangeNoNo
Country of regulationUSAUK, Cyprus, Australia

Ease Of Use

eToro's platform is user-friendly, easy to navigate, and offers a wide range of tools for beginners to get started. eToro has invested in making their mobile apps simple yet effective with features like real-time market quotes so you can track your portfolio on the go!

eToro also provides a demo account that helps beginners gain confidence before investing real money into any particular asset.

eToro's CopyTrader feature allows investors who are just starting out or want exposure without having too much risk involved (copying another investor).

Robinhood uses its own app, which makes it really easy to invest in stocks. You can set up automatic deposits from your bank account every week/month so that you don't have to worry about transferring money manually or at the last minute. The app is user-friendly and has a clean design with no clutter. You can also trade options on Robinhood, which is not available on eToro.

Conclusion

So, which is better for beginner investors? At the end of the day, it depends on what you're looking for in an online trading platform.

eToro offers a more comprehensive experience with access to multiple markets and social trading features, while Robinhood only focuses on stocks and options trading within the US stock market.

eToro may be better suited for beginner investors who are looking for a one-stop shop when it comes to investing, while Robinhood may be a better fit for experienced traders who want exposure to more than just one market.

If none of these platforms seem like a good fit for you, visit our comparison page now. Once there, answer a few simple questions, and our algorithm will pick the best trading app for you. 

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