eToro versus Robinhood - a detailed comparison for 2022

eToro and Robinhood compete in the commission-free stock trading market. Both are giants of the online brokerage industry with a major difference: eToro has a global outreach while Robinhood only caters to US clients.

eToro USA LCC does not offer CFDs, only real Crypto assets available.

The list of differences doesn’t end here and we put together a detailed comparison of the two brokers highlighting both similarities and dissemblances in their services.

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eToro is the largest social trading platform in the world with a great selection of cryptocurrencies and a range of other assets (i.e. stocks, CFDs). Robinhood is a US-based, zero-commission discount broker established in 2013 focusing on US assets and clients.

eToro vs Robinhood overview
eToro	Robinhood
Recommended for investors interested copy trading and and zero commission stock trading	Recommended for beginners and buy-and-hold investors focusing on the US stock market
Pros: Free stock and ETF tradin Wide range of social trading features Seamless account opening	Pros: Free US stock and ETF trading Great mobile and web trading platforms Fast and fully digital account opening
Cons High non-trading fees Only USD accepted as account base currency Sub-optimal customer service	Cons Available in the US only Limited product rang Weak customer support
Read our eToro review for 2022	Read our Robinhood review for 2022

TABLE OF CONTENTS

eToro vs Robinhood : markets and products
eToro vs Robinhood : fees
eToro vs Robinhood : account opening
eToro vs Robinhood : customer service

eToro vs Robinhood : markets and products

eToro clients can trade CFDs and forex, as well as real stocks, ETFs and a wide selection of crypto coins. Innovative services like social trading and Smart Portfolios are also available. US clients have access to US Stocks, ETFs and crypto. A word of caution: we do not recommend eToro for long-term investors focusing on collecting dividends from US stocks because eToro deducts the 30% default US dividend tax.

Robinhood 's product portfolio is limited, as it offers only stocks, ETFs, options and cryptos. Furthermore, assets are limited mainly to US markets. The share protfolio includes about 5,000 stocks and ETFs, the majority of which are listed on major US stock exchanges. There are also some non-US stocks, which are provided through ADRs rather than indirectly through foreign exchanges. Crypto assets are available inthe majority of US states and the broker is gradually rolling out this service to cover all of them.

eToro vs Robinhood : fees

As an eToro client, you can trade stocks and ETFs for free, and forex and CFD fees are low. With the free feature, you're buying the real stock, not a CFD product, therefore you cannot use leverage. Trades that involve stocks not traded in USD (like UK or European stocks) will be converted to USD at actual market prices by eToro, without taking any commission or markup. What's more, eToro will also absorb any tax duty that might be due if you trade on the UK market.
In terms of non-trading fees, eToro becomes a bit more expensive. The most notable charges are a $5 withdrawal fee and an inactivity fee of $10 per month that kicks in after one year of inactivity. It’s enough to log into your account to avoid having to pay this fee.

Robinhood charges zero commission for US stock, options and crypto trading. In addition, there is no inactivity or withdrawal fee if you use ACH. If you trade foreign stocks in the form of ADRs, you will incur a small custody fee (usually 1 to 3 cents per share).
If you want to trade stocks on margin, you'll need to open a Gold account and you’ll be charged a margin rate . Robinhood's margin rates are lower than its peers' but a bit higher than those charged by Interactive Brokers (IBKR) for example.
If you want to withdraw money from Robinhood and can’t use an ACH, you will face the following charges: a domestic wire transfer costs $25 and you will have to pay $50 for international wire withdrawals. If you want to transfer assets out from Robinhood, a transfer fee of $75 will be charged.

eToro vs Robinhood : account opening

eToro accepts clients from all around the globe, with a few notable exceptions including Russia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Saudi Arabia and Turkey. The account opening is super fast and the minimum deposit for most clients is $200. Residents of Australia and the US have to deposit an initial minimum amount of $50. Note however that the minimum amount for a bank transfer is $500.

eToro offers two simple account types: there is a live account and a demo (or virtual) account, where you can test the platform with play money.

Robinhood only accepts US clients but has plans to roll out its services to Europe. The broker has already received a license from the UK regulator FCA, however it’s unclear when they will launch their services. The broker doesn’t offer IRA accounts, which are the most popular pension saving vehicles in the US:

The account opening process itself is seamless, fully digital and can be completed within a day. There are 3 account types (Cash, Instant and Gold) and each come with different rules, mostly pertaining to day trading. There is no minimum deposit for the Robinhood Instant account but if you upgrade to the Robinhood Gold account (the only account type that allows leverage), you will have to deposit a minimum of $2,000.

eToro vs Robinhood : customer service

Customer service is one of the weakest points of the eToro user experience. You can reach the broker mainly via a web-based ticketing system and answers take a long time to arrive. Live chat is only available to Club members. The lowest tier of eToro Club membership is silver, which one can reach by having more than $5,000 in equity on their account. According to eToro, customer service is available in all 21 languages that the web and mobile trading platforms offer.

Customer support is the shakiest part of the Robinhood servce. You can only contact the support team via e-mail and telephone or live chat are not available. Customer support is not available 24/7. On the upside, it took them less than a day to reply to our email, and their answer was helpful and contained all the information we requested.

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Risk disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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