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Robinhood and eToro have several things in common. Both are online discount brokers created to provide platforms for everyone to have access to trading without excessive fees. Both brokers also focus on providing simpler self-directed investing by incorporating innovative technology. Finally, both brokers were industry disruptors, with eToro entering the industry in 2007 and Robinhood following a few years later in 2013.
There are, of course, important differences beyond this. Robinhood stands out for its IRA retirement accounts, including giving investors up to a 3% match on contributions, a feature unique in the industry. However, eToro has a far larger selection of crypto assets and was our pick as the best broker for cryptocurrency trading. We’ll look deeper at these two trading platforms to help you decide which one is a better fit for your portfolio needs.
- Account Minimum: $0
- Fees: $0 commissions for stock, ETF, options, and cryptocurrency trading
- Account Minimum: $50-$200 minimum deposit for most regions, $200 minimum per trader for copy trading features, $500 minimum investment for Portfolio
- Fees: 1% crypto trading fee plus market spread; no-fee stock, ETF, and options trading ($1-$2 per trade fee in select few countries), plus market spread; 2% crypto asset transfer fee
Warning
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take two minutes to learn more.
This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Usability
Both Robinhood and eToro offer streamlined platforms that make it easier for investors of any experience level to find information. Both brokers offer a website and mobile app platform. Robinhood’s platforms have similar layouts and near identical experiences. Investors can customize both platforms and can customize the price charts in each platform. Robinhood has partnered with NASDAQ to provide investors with access to real-time streaming stock quotes on both of its platforms. Robinhood has significantly upgraded its charting capabilities, something long-demanded by users. New chart features include moving averages, allowing investors to better analyze stock trends.
eToro also offers customizable advanced charting tools. These charts allow you to apply technical studies and use common drawing tools, putting eToro’s charting capabilities ahead of Robinhood. Investors can benefit from eToro’s Smart Portfolios tool, a form of automated investing using a “predetermined strategy,” as well as CopyTrader, which is a tool that lets investors mimic the strategies and portfolios of more experienced traders. The platform’s News Feed allows traders to share their market insights so other investors can decide whether to copy them.
Usability Verdict: eToro
Robinhood and eToro both have user-friendly platforms. However, eToro leads in this category because its users have access to more robust features in the mobile app and website platforms, especially given the unique social trading elements.
Trade Experience
Desktop Experience
Robinhood and eToro have streamlined website platforms. Both brokers keep things simple for their users and do not provide a robust collection of advanced research and trading tools. However, eToro provides features that Robinhood does not, such as a trading journal, access to proprietary research, and access to international exchanges.
Desktop Experience Verdict: eToro
eToro is a leader in online social investing and has some interesting features for investors, like One-Click Trading, which allows traders to quickly open positions with preset parameters. These more advanced features make eToro the winner in this category.
Mobile Experience
Both eToro and Robinhood are strong choices for investors who favor user-friendly mobile trading platforms. eToro’s social feel is highlighted through the mobile design. eToro’s mobile users have access to a drawing tool in the charting feature, but Robinhood lacks in this area by not offering a drawing tool in either platform. Robinhood also does not allow trades to be executed directly from charts.
There are some areas where eToro and Robinhood tie. Both brokers’ mobile apps support the same order types and provide access to the same asset classes as the website platforms. Additionally, both brokers’ mobile platforms provide real-time streaming stock quotes and real-time portfolio reports.
Mobile Experience Verdict: eToro
Overall, Robinhood and eToro have all the features in their mobile app platforms to meet the needs of new and passive investors. However, more active traders may prefer eToro’s mobile platform due to the availability of more tools.
Range of Offerings
Robinhood offerings include stocks, exchange-traded funds (ETFs), options, cryptocurrencies, fractional share trading for stocks and ETFs, fractional cryptocurrency trading, and a dividend reinvestment plan (DRIP) for stock and ETF dividends. Robinhood offers the Robinhood Cash Card (debit card) and a web3 wallet for customers who want to store their digital assets, including NFTs. eToro’s offerings include stocks, ETFs, cryptocurrencies, options, fractional share trading, the eToro Money account, a crypto wallet, and automated investing through Smart Portfolios. eToro has a larger selection of available cryptocurrencies than Robinhood.
Robinhood and eToro have limited offerings in comparison to other brokers. Neither offers mutual funds, forex, or futures trading. Neither Robinhood nor eToro allows short selling, but Robinhood offers a margin account. Robinhood also offers IRA and Roth IRA retirement accounts, while eToro does not. Robinhood matches annual IRA contributions up to 3% to encourage users to deposit more money.
Range of Offerings Verdict: Tie
The winner in this category depends on what someone is looking for. Robinhood’s range of offerings is better for investors saving for retirement, while eToro is better for crypto investing.
Compare Range of Offerings
| Criteria | eToro | Robinhood |
|---|---|---|
| Short Sales | No | Yes |
| Number of No-Load Mutual Funds | N/A | N/A |
| Assets Available to Trade on Website | Stocks, ETFs, Futures, Cryptocurrencies (asset only) | Stocks, ETFs, Options, OTC, Cryptocurrencies (asset only) |
| Max Number of Options Legs | 2 | 4 |
| Robo Advisory | No | No |
| Number of International Exchanges | 19 | 0 |
| Fractional Share Trading | Yes | Yes |
| Fractional Dividend Reinvestments | Yes | Yes |
Order Types
Robinhood’s order types are based on the asset class. Limit, market, stop, and stop limit orders are available for cryptocurrencies. Limit, stop limit, and market orders are available for options. Market, limit, stop, stop-limit, and trailing stop orders are available for stocks. Some stocks can be placed as good-for-day (GFD) or good-til-canceled (GTC) orders. Robinhood also offers a 24-hour market for select stocks and ETFs. You can set up limit orders when markets are closed and pick the time when the app will try to execute them using your set limit price.
eToro provides the basic order types such as market, limit, stop loss, and take profit. Additionally, eToro offers One-Click Trading with predetermined factors such as leverage, take profit, and stop loss.
Order Types Verdict: Robinhood
Robinhood edges out eToro in this category due to the availability of more order options.
Trading Technology
Robinhood is continuing to provide new and improved trading tools to meet customers' needs. Some examples include charting tools and a web3 wallet platform for advanced cryptocurrency trading.
Both Robinhood and eToro receive payment for order flow (PFOF). eToro has an agreement with Apex Clearing, which handles the order routing and discloses PFOF that was on the low end when we evaluated it—although it is hard to know what is specific to eToro flow. Robinhood publicly discloses its order execution quality statistics. It reported that 95.62% of orders were executed at the National Best Bid and Offer (NBBO) or better in the first quarter of 2024.
Both eToro and Robinhood offer a dividend reinvestment plan (DRIP) and fractional share trading on all platforms. In terms of innovation, eToro offers CopyTrader and Smart Portfolios, which are somewhat automated features that allow users to copy other investors’ investing behaviors and choose options from portfolios that are already diversified. These are the closest options to having a robo-advisor. As an added benefit, eToro has a dedicated team that monitors the portfolio's performances and assists with other actions, such as rebalancing.
Trading Technology Verdict: Tie
eToro offers users the ability to customize charts, a trading journal, and some screening tools. Neither broker offers backtesting features. This category is a tie. Depending on what is most important to investors, either broker could meet their needs.
Costs
Both brokers provide commission-free stocks, options, and ETFs. eToro charges a 1% commission for cryptocurrencies, whereas Robinhood does not charge commissions for cryptocurrencies. Robinhood’s margin rate is 6.75%, and Gold subscribers get a lower rate. eToro does not have a traditional margin account, although leverage can be accessed on certain investments for a fee. eToro requires a minimum investment of $200 to use the CopyTrader feature.
Costs Verdict: Robinhood
Robinhood provides more cost savings for investors and therefore is the leader in this category.
Compare Costs
| eToro | Robinhood | |
|---|---|---|
| Option for no base commission for trading penny stocks | Yes | Yes |
| Option for no base commission for stocks and ETFs | Yes | Yes |
| Number of no-load mutual funds without transaction fees | N/A | N/A |
| Transaction fee on no-load mutual funds with transaction fees | N/A | N/A |
| Recurring investment fees | N/A | No |
| Base commission for options | No | No |
| Cost per stock trade | $0.00 | $0.00 |
| Cost per options contract | $0.00 | $0.00 |
| Cost per futures contract | N/A | N/A |
| Broker-assisted trade fee | $0.00 | N/A |
| Volume-based options discounts (upon meeting a threshold) | N/A | N/A |
| Options price cap (upon meeting a threshold) | N/A | N/A |
| Inactivity fees | Yes | No |
| Account closure fees | No | No |
Account and Research Amenities
Both Robinhood and eToro are lacking in this area in comparison to the advanced tools provided by other brokers. Platform research features that are available to investors are user-friendly but limited. eToro does not provide calculators or trading idea generators besides its CopyTrader system. New Robinhood investors can receive a first Trade recommendation for a portfolio of ETFs. However, Robinhood does not provide trading ideas or calculators beyond that.
Robinhood does not offer proprietary research. Robinhood Gold users do gain access to Morningstar in-depth stock research reports, though it costs $5 per month to join Robinhood Gold.
On the other hand, eToro offers its customers free proprietary and third-party research information. Both brokers offer investors daily market reports. While both brokers offer screeners and watchlists, eToro’s are more comprehensive. For example, eToro offers stock and ETF screeners, while Robinhood only offers a stock screener.
Account and Research Amenities Verdict: eToro
eToro wins in this category for providing slightly more research amenities for free.
Compare Account and Research Amenities
| eToro | Robinhood | |
|---|---|---|
| Portfolio Margin Available | Yes | Yes |
| Ability to Choose and Offer Shares Held Long to a Loan Program | No, users cannot offer shares held long to a stock loan program | Yes - users can offer shares, but users cannot choose the stocks to loan |
| Interest Earned on Uninvested Cash | 4.90% | 1.00% APY |
| Uninvested Cash Automatically Swept Into a Money Market Fund | No | Yes |
| Screeners Offered | ESG/SRI, Stocks, ETFs, Crypto asset | Stocks |
| Ability to Build Custom Screen | Yes | Yes |
| Ability to Screen Based on Technical Indicators | No | Yes. You can choose from over 20 filters, including 52-week high/low, price change, volume, and implied volatility. |
| Ability to Save Custom Screens | Yes | Yes |
| Access to Proprietary Research | Yes, with no additional cost | No |
| Access to Third-Party Research | Yes, with no additional cost | Yes - with additional cost |
| Ability to Turn Screen Results into a Watchlist | Yes | No |
| Trading Idea Generator Offered | No | No |
| Daily Market Research Reports Offered | Yes | Yes |
| Types of Charts Offered (Ex: Line) | Line, Bar, Candle | Line, Candle |
Portfolio Analysis
Robinhood and eToro both have limited portfolio analysis tools. Robinhood offers a sector allocation monitor, which is a portfolio tracking feature. When it comes to portfolio reports, both brokers offer these reports to investors in all platforms. Neither broker offers backtesting strategy features.
Portfolio Analysis Verdict: Tie
Other than normal access to daily balances, positions, etc., there are no advanced analysis tools. In this category, Robinhood and eToro tie.
Education
Robinhood has been working to expand its educational resources. Robinhood Learn is a library of investing education including the basics of investing, various investing terms, financial literacy, taxes, entrepreneurship, and more. Robinhood Learn content is in the form of articles, videos, and in-app course modules. Additionally, Robinhood offers its customers a three-minute read newsletter called Robinhood Snacks that is emailed to subscribers weekly. Robinhood also runs a podcast.
eToro Academy is eToro’s free online investing education platform. On this platform, customers can find educational information on various financial topics and additional insight on some of eToro’s trading tools. It covers material for both beginner and advanced investors. eToro also provides a free Virtual Demo account, where investors can test strategies and learn using play money.
Education Verdict: Tie
This category is a tie, given that both companies provide a variety of educational materials.
Customer Service
Limited direct access to customer service is an issue for both Robinhood and eToro. Both brokers offer a Help Center containing answers to common questions on their website and mobile platforms. Only current Robinhood customers have direct access to customer service, which is available after logging into their accounts on the website or mobile platforms.
Robinhood upport is available through a 24/7 live chat and by telephone from 7 a.m. to 9 p.m. ET, but only via the in-app callback feature. eToro offers visitors an option to open a customer service request ticket on the website.
Customer Service Verdict: Robinhood
While both companies could be better, Robinhood has a slight edge thanks to its 24/7 live chat and available phone support.
Security
Robinhood and eToro both offer two-factor authentication, encryption, and biometric logins on all trading platforms. Robinhood and eToro customer assets are protected by the Securities Investor Protection Corporation (SIPC) for up to $500,000 (including $250,000 for cash).
Transparency has previously been an issue for current and prospective customers for Robinhood due to an outage on both platforms in March 2020 and a data security breach on Nov. 3, 2021.
Security Verdict: eToro
eToro edges out Robinhood in this category with no reported outages or data security breaches.
The Bottom Line
New and passive investors seeking streamlined, simple platforms will most likely be satisfied with either Robinhood or eToro. Both Robinhood and eToro will appeal to investors who prefer mobile investing because both brokers' mobile app platforms offer the same features as their website platforms.
Robinhood is the better choice for investors saving for retirement. It offers both IRA and Roth IRA retirement accounts, including up to a 3% matching contribution when users deposit money. eToro does not have retirement accounts. Robinhood also has a slight edge on cost savings as it does not charge commissions on any trades.
eToro is better for crypto investing thanks to its wide selection of cryptocurrencies. eToro has slightly more trading capabilities, including the ability to mimic the portfolios of successful investors using its CopyTrader system. Still, neither eToro nor Robinhood is meant for serious day traders. Both are geared toward beginner, passive, and cost-conscious investors. This group would find either broker an appealing, affordable choice.
How We Picked the Best Online Brokers and Trading Platforms
Providing readers with unbiased, comprehensive reviews of online brokers and trading platforms is a top priority for Investopedia. We combined our industry research, subject matter expertise, and investor survey data to guide the research and weightings for our 2024 online broker awards. To collect the data, we sent a digital survey with 110 questions to each of the 26 companies we included in our rubric. Additionally, our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. The data collection process spanned from Feb. 19 to March 19, 2024.
We then developed a proprietary model that scored each company to rate its performance across 11 major categories and 89 criteria to find the best online brokers and trading platforms. The score for each company’s overall star rating is a weighted average of the criteria in the following categories:
Additionally, during our 2024 research, many of the companies we reviewed gave us live demonstrations of their platforms and services via video conferencing methods and also granted our team of expert writers and editors access to live accounts so they could perform hands-on testing.
Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top online brokers and trading platforms.
Learn more about how we review online brokers.