Robinhood versus Trading212

Robinhood and Trading212 cater primarily to millennial and GenZ traders with a preference for mobile trading. Both offer proprietary, user-friendly mobile apps, maintain commission-free pricing environments, and have experienced explosive growth and controversy since 2020.

Both brokers provide beginners with acceptable quality educational content, but their market commentary and research fail to add value. Robinhood and Trading212 have issues with customer support, but the former also has a controversial history and engages in payment for order flow.

Trading212 offers fractional share dealing from as little as £1.00 plus its AutoInvest feature, creating a higher-quality trading environment. Robinhood pioneered commission-free trading in the US and Trading212 across Europe.

I have conducted an in-depth review of Robinhood and Trading212 to determine which one presents the better overall choice and which traders will benefit the most at either broker.

Features and Platforms

Features & PlatformsTrading212 (visit site)Robinhood (visit site)
Headquarter:UK, BulgariaUS
Established :
20062013
Retail Loss Rate:
68.00%Undisclosed
Regulation:
Minimum Deposit:
$1$0
Demo Account:
Managed Account:
Islamic Account:
Inactivity Fee
Deposit Fee:
0.70% (after total deposits of £2,000)
Withdrawal Fee
Third-PartyThird-Party
Funding Methods:
122
MT4:
MT5:
cTrader:
Proprietary Platform:
Automated Trading:
Social / Copy Trading:
MT4/MT5 Add-ons:
Guaranteed Stop Loss:
Negative Balance Protection:
Bonuses and Promotions:
Unique Feature One:
Fractional share dealingAccess to IPOs
Unique Feature Two:
AutoInvest and PiesFractional share trading
Broker Offers:

Noteworthy:

Robinhood provides clients with a debit card featuring weekly rewards. Trading212 offers services to traders and investors via distinct units but continues to experience withdrawal issues and stopped onboarding clients months ago.

Available Markets

Available MarketsTrading212Robinhood
Currency Pairs:
Cryptocurrency Pairs:
Commodities and Metals:
Indices:
Equities:
Bonds:
ETFs:
Options, Futures, and Synthetics:
Maximum Retail Leverage:
1:301:2
Maximum Pro Leverage:
1:5001:2

Robinhood offers equity and ETF trading, supplementing its asset list with options, gold, and select cryptocurrencies, which Trading212 does not maintain. Trading212 maintains 10,000+ assets, where global equities account for most of them. It is also a leading Forex broker with 180+ currency pairs, notably absent at Robinhood, where traders get IPO access.

Typical Spreads and Fees

Typical Spreads & FeesTrading212Robinhood
Minimum Raw Spreads:
Not applicableNot applicable
Minimum Standard Spreads:
0.2 pipsNot applicable
Minimum Commission for Forex:
Commission-freeNot applicable
Commission for Equities:
Commission-freeCommission-free
Commission Rebates:
Not applicableNot applicable
Execution Type:
Market MakerMarket Maker

Robinhood pricing transparency remains an issue, which Trading212 recently fixed. It lists 2.50% margin rates, a cheap offer versus US-based competitors. Robinhood also supplements income by selling order flow. Trading212 lists average Forex spreads near 0.2 pips or $2.00 per 1 standard lot, making it one of the cheapest cost structures industry wide.

Security and Trust

Trading212

Country of the RegulatorName of the RegulatorLicense Number
UK
Financial Conduct AuthorityRegister Number 609146
Bulgaria
Financial Supervision CommissionRegister Number 03-0237
Cyprus
Cyprus Securities and Exchange CommissionLicense Number 398/21

Robinhood

Country of the RegulatorName of the RegulatorLicense Number
US
US Securities and Exchange Commission (SEC)Undisclosed

Trading212 offers negative balance protection, and its UK and Cyprus subsidiaries have investor compensation funds, up to £85,000 in the UK and €20,000, or 90% of the portfolio in Cyprus. Both segregate client deposits from corporate funds.

Robinhood is a Financial Industry Regulatory Authority (FINRA) member. Client protection exists via the Securities Investor Protection Corporation (SIPC) 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). Traders should consider the controversial history of Robinhood.

Robinhood vs Coinbase – Verdict

Trading212

ProsCons
Market-leading currency and commodities selectionLow leverage for retail traders
Fractional share dealing and AutoInvestMT4 trading platform and algorithmic trading not available
YouTube educational channel
Low minimum deposits from as little as $1

Robinhood

ProsCons
Fractional share dealing from $1.00 and access to IPO tradingLimited deposit and withdrawal options
Debit card for swift financial transactionsQuestionable business practices and lack of overall transparency
Beginner traders get a wealth of educational content in written formAlgorithmic trading not available
Optimized mobile app

Robinhood and Trading212 offer equity traders with smaller portfolios an excellent service with fractional share dealing. Trading costs are higher at Robinhood, but Trading212 maintains more expensive financing rates and currency conversion fees. The absence of MT4 and algorithmic trading at both brokers are notable. Trading212 trumps Robinhood with its trading conditions and broader asset selection.

You might also be interested in reviewing the below broker comparisons:

Most Visited Forex Broker Reviews