Robinhood offers commission-free equity and ETF trading, IPOs, and cryptocurrencies. Coinbase became one of the most trusted US-based cryptocurrency exchanges and a market leader in its category by volume as of March 2021. Both continue to attract clients, with millennial and GenZ traders their primary market with a preference for mobile trading, where Robinhood and Coinbase present their in-house developed apps.
Beginner traders get educational content at Robinhood and Coinbase, but the latter pays a small number of cryptocurrencies after completing each lesson. Both struggle to fix their customer support, but Robinhood also has a controversial operating history and receives payment for order flow. Robinhood pioneered commission-free trading in the US, while Coinbase brought cryptocurrency trading to the retail sector.
We have conducted an in-depth review of Robinhood and Coinbase to determine which one presents the better overall choice and which traders will benefit the most at either broker.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Robinhood versus Coinbase - Verdict
 |  | |
Headquarters | United States | United States |
Tier 1 Regulator(s)? | ||
Owned by Public Company? | ||
Year Established | 2012 | 2013 |
Execution Type(s) | Market Maker | Market Maker |
Minimum Deposit | None | $0 |
Trading Platform(s) | Proprietary platform, Web-based | Proprietary platform |
Minimum Raw Spreads | N/A | Not applicable |
Minimum Standard Spreads | N/A | Not applicable |
Minimum Commission for Forex | N/A | Not applicable |
Islamic Account | ||
Signals | ||
US Persons Accepted? | ||
Managed Accounts | ||
| Visit Website | Visit Website |
Features and Platforms
| | |
MT4 | ||
MT5 | ||
cTrader | ||
Proprietary Platform | ||
Automated Trading | ||
DOM? | ||
Guaranteed Stop Loss | ||
Scalping | ||
Hedging | ||
One-Click Trading | ||
OCO Orders | ||
Interest on Margin | ||
| Visit Website | Visit Website |
Noteworthy:
Both offer a branded debit card, ensuring clients have swift access to their funds. A monthly subscription-based account upgrade exists at Robinhood, costing $5 monthly, including a $1,000 margin allowance. Neither supports algorithmic trading.
Available Markets
| | |
Cryptocurrencies | N/A | |
Commodities | ||
Crude Oil | ||
Gold | ||
Metals | ||
Equity Indices | ||
Stocks (non-CFDs) | ||
ETFs | ||
Options | N/A | |
Futures | ||
Synthetics | ||
| Visit Website | Visit Website |
Coinbase remains a pure cryptocurrency exchange but excels in this sector, presenting the broadest asset selection in the US. Robinhood is primarily an equity broker with access to select cryptocurrencies, gold, options, and ETFs. It also offers IPO trading and fractional share dealing from as little as $1, ideal for diversifying smaller portfolios.
Typical Spreads and Fees
| | |
Average Trading Cost Bitcoin | 0.05% to 0.60% | N/A |
Minimum Raw Spreads | N/A | Not applicable |
Minimum Standard Spreads | N/A | Not applicable |
Minimum Commission for Forex | N/A | Not applicable |
| Visit Website | Visit Website |
Robinhood maintains higher trading costs versus many competitors but offers leveraged traders one of the lowest margin rates at 2.50%. Pricing transparency remains an issue at this broker, which supplements income by selling order flow. Coinbase Standard costs range between $0.99 and $2.99 with a fixed margin rate of 8.00%.
Security and Trust
| | |
Country of the Regulator | N/A | United Kingdom, United States |
Regulatory License Number | N/A | 165998, 8-69188, 823590 |
Regulatory Tier | N/A | 1, 1 |
| Visit Website | Visit Website |
Robinhood is a Financial Industry Regulatory Authority (FINRA) member. The Securities Investor Protection Corporation (SIPC) offers client protection up to $500,000 per net equity or $250,000 for cash claims. Additional Robinhood membership consists of The New York Stock Exchange (NYSE), the NASDAQ, and the CBOE EDGX Exchange (CBOE EDGX).
Coinbase remains unregulated but duly registered as a Money Service Business with the US Financial Crimes Enforcement Network (FinCEN). It has all the necessary licenses to carry out its business. Coinbase Global Inc., the exchange operator, is a NASDAQ listed company with SEC oversight, which does not carry over to the cryptocurrency exchange operations.
Robinhood vs Coinbase – Verdict
Coinbase
Pros | Cons |
|---|---|
| Excellent choice of cryptocurrency assets, and US market leader by trading volume | Limited deposit and withdrawal options |
| Coinbase debit card for swift financial transactions | Inadequate customer support |
| Educational content allows beginner traders to earn crypto assets | |
| Publicly listed company |
Robinhood
Pros | Cons |
|---|---|
| Fractional share dealing from $1.00 and access to IPO trading | Limited deposit and withdrawal options |
| Debit card for swift financial transactions | Questionable business practices and lack of overall transparency |
| Beginner traders get a wealth of educational content in written form | |
| Optimized mobile app |
Coinbase offers US-based cryptocurrency investors an excellent choice. Clients get a broad-based asset selection, a user-friendly exchange platform, and a hassle-free method to acquire cryptocurrencies. Robinhood caters to equity investors who accept higher trading costs. It also features IPOs, ETFs, and a convenient trading platform. Both maintain a secure trading environment.
You might also be interested in reviewing the below broker comparisons:
- Coinbase vs Binance
- Coinbase vs Kraken
- Coinbase vs Webull
- Robinhood vs Trading212
- Robinhood vs Coinbase
- Robinhood vs Webull
FAQs
Which one is better: Coinbase or Robinhood?
Coinbase is better for cryptocurrencies, but trading costs are lower at Robinhood, primarily catering to equity traders. Coinbase presents a notably broader choice of cryptocurrencies.
Is Robinhood the same as Coinbase?
Robinhood is primarily an equity broker, while Coinbase is a cryptocurrency exchange.
Why is there a price difference between Coinbase and Robinhood?
The costs depend on the liquidity providers and internal mark-ups, where Robinhood creates an edge but only features a few cryptocurrencies.
Are you actually buying Bitcoin on Robinhood?
Robinhood supports physical Bitcoin purchases with cold storage as a security feature. It also maintains insurance against theft and cybersecurity breaches.