FOREX.com vs. Robinhood: Which Broker Is Right for You?
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Robinhood pioneered zero-commission stock trading upon the launch of its mobile app in 2022. Soon after, most of the top stock brokers followed suit and offered commission-free trading. FOREX.com is one of the larger FX trading platforms in the U.S., with advanced research tools. Both brokers cater to particular markets and trader demographics. In this FOREX.com vs. Robinhood.com review, we'll take a closer look at both investment platforms, their fee structures, and the differences investors should know about before deciding which one to use.
FOREX.com vs. Robinhood: At a glance.
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Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor.
FOREX.com vs. Robinhood: Investments available.
Robinhood offers stocks, exchange-traded funds (ETFs), options, fractional shares, and cryptocurrencies. FOREX.com is a global forex and CFDs (Contract for Differences) broker. The foreign exchange (FX) market is the largest and most liquid market in the world, but many of the top stock brokers such as Robinhood don't offer FX trading.
FOREX.com offers over 80 currency pairs, metals, and futures (through an account with its affiliate FuturesOnline). FOREX.com does not offer access to stocks, options, or cryptocurrency for U.S.-based traders.
Non-U.S. traders have access to stocks and cryptocurrency through CFDs. Investors trading CFDs do not own the underlying security, but instead trade a financial contract on the security. It is an advanced trading strategy used by experienced traders and is not allowed in the U.S. Investors also do not have access to funds or bonds on FOREX.com.
FOREX.com (U.S. Based trader) Robinhood Stocks and ETFs No Yes Fractional Shares No Yes Options No Yes Mutual Funds No No CDs No No Bonds No No Futures Yes (through an affiliate, FuturesOnline) No Crypto No Yes Currencies Yes No.
FOREX.com vs. Robinhood: Commissions & fees.
FOREX.com and Robinhood focus on different markets. As a result, the evaluation criteria for fees between both brokers are different. Robinhood offers zero-commission trading for stocks, options, ETFs, and cryptocurrencies. Investors can opt for a Robinhood Gold account for a monthly $5 fee. Gold members get access to margin trading (including $1,000 of interest-free margin), access to larger deposits, and access to Morningstar stock research reports.
FOREX.com does not charge a fee, but instead charges a spread or commission based on trading volume. Pricing is based on the type of account a trader has with FOREX.com. For currency pairs, the spread is the difference between the bid and ask rates when trading currencies.
The bid-ask spread is the difference between the prices at which a broker buys and sells a currency. Traders looking to sell are quoted the bid price, and a trader looking to buy is quoted the ask price. Spreads vary based on the currency, the time of day, economic conditions, and the broker. Pricing is transparent and the live spreads are available on FOREX.com.
FOREX.com (U.S. Based trader) Robinhood Stock & ETF Commissions Not available $0 Forex / FX Fees depend on the type of account. Traders pay a spread, a commission, or both. Not available Options Commissions Not available $0 Crypto Commissions Not available $0 Mutual Fund Commissions Not available Not available Account Transfer Fee $0 $75 Account Maintenance Fee $15 inactivity fee per month if there is no trading activity for 12 months $0.
FOREX.com vs. Robinhood: Account types available.
Robinhood offers individual brokerage accounts but does not offer IRAs. Investors looking to open an IRA will have to find another broker. In addition, investors cannot open a joint account, trust account, or a custodial account with Robinhood.
Robinhood Cash Management is an interest-bearing account that is like a checking and savings account. However, Robinhood is not a bank, so it does not offer FDIC insurance. Robinhood offers a debit card that uses available cash from a trader's brokerage account.
FOREX.com offers traders an individual account, a joint account, trust account, and an IRA. Traders can open their accounts on FOREX.com's platform or MetaTrader Account's platform. An IRA can be opened on FOREX.com through one of three partner custodians: Midland IRA, Millennium Trust Company, or Equity Trust Company. Traders fund their IRAs by sending funds directly to the trust company.
FOREX.com Robinhood Taxable Brokerage Yes Yes Joint Tenant Yes No Corporate Yes No Partnership Yes No Trust Yes No Margin Yes Yes, with Robinhood Gold Robo-Advisor No No Traditional IRA Yes No Roth IRA No No Other IRA No No Custodial No No Checking No No Savings No No Credit Card No No Debit Card No Yes.
FOREX.com vs. Robinhood: Mobile app and trading platforms.
Robinhood has a mobile app for Android and iOS devices. It also has a web-based version of its mobile app so traders can trade on a desktop. Robinhood lacks many advanced trading tools, but makes up for it in its simplicity. The platform is more than adequate for traders who want timely execution of trades.
FOREX.com has an easy-to-use trading platform, and traders have several versions to choose from. Traders can use FOREX.com's web platform, its iPhone and Android App, its desktop trading platform, or a third-party FX trading platform called MetaTrader.
FOREX.com has teamed up with TradingView, one of the top charting technology companies, to offer advanced tools for technical analysis and trading. There are over 90 indicators to choose from. Traders can create their own customized indicators and charts.
Final take.
FOREX.com and Robinhood are both popular trading platforms but cater to different trader demographics. FOREX.com is best for investors who want to trade FX or learn more about trading FX. Robinhood is best for traders who want to trade U.S. stocks, options, and cryptocurrencies with ease.
About the Author.
David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.
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Robinhood disclosure.
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Robinhood crypto disclosure.
This advertisement contains information and materials provided by Robinhood Financial LLC, Robinhood Securities LLC and its affiliates (“Robinhood”) and Publisher, a third party not affiliated with Robinhood. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Securities offered through Robinhood Financial LLC, a member of FINRA and SIPC and a wholly-owned subsidiary of Robinhood Markets, Inc. Cryptocurrency trading offered through Robinhood Crypto LLC. Robinhood Crypto and Publisher are not a members of FINRA or SIPC and cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC insurance.