Comparison
Robinhood versus Coinbase

Robinhood versus Coinbase

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
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
	Get Started	Get Started

Features and Platforms


MT4
MT5
cTrader
Proprietary Platform
Automated Trading
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
	Get Started	Get Started

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
	Get Started	Get Started

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
	Get Started	Get Started

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
	Get Started	Get Started

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.

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Read full Coinbase Review

Read full Robinhood Review

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.