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Robinhood pioneered zero-commission stock trading upon the launch of its mobile app in 2015. 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 US, 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.
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 US-based traders.
Non-US 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 US Investors also do not have access to funds or bonds on FOREX.com.
|
FOREX.com (US Based trader) |
robinhood |
|
|---|---|---|
|
Stocks and ETFs |
No |
Yes |
|
Fractional Shares |
No |
Yes |
|
Options |
No |
Yes |
|
Mutual Funds |
No |
No |
|
CD’s |
No |
No |
|
Leaps |
No |
No |
|
Futures |
Yes (through an affiliate, FuturesOnline) |
No |
|
Crypto |
No |
Yes |
|
Currencies |
Yes |
No |
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 (US 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 |
|
Commission Options |
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 |
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 |
|
Seal Holding |
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 |
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 US stocks, options, and cryptocurrencies with ease.
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