eToro vs Robinhood
Robinhood and eToro are both popular trading apps that offer zero commission trading on US stocks and ETFs. Although Robinhood is well-known in Australia, it's not actually available here. If you're looking for a trading app that's similar in Australia, eToro is probably your best bet. We compare the two below.
Share Trading Account Offer
USD 0
Standard brokerage - US shares
Share Trading Account Offer
Get $0 brokerage on AU, US, Hong Kong and European stocks with trades as little as $50 when you join the world's biggest social trading network.
- $0 brokerage for AU, US, Hong Kong and European stocks
- Trades starting from $50
- Fractional shares
- Copy top traders
Disclaimer: Trading CFDs and forex on leverage is high-risk and losses could exceed your deposits.
Summary
With low fees, minimalist layouts and a design that will appeal to younger traders, eToro and Robinhood are two of the most popular apps out there. Both apps offer zero commission trading for US stocks and ETF plus cryptocurrency trading; however, eToro has quite a few more options available such as forex, commodities and indices.
You can choose to trade with or without leverage (leverage is higher risk) on either app; however, they go about this in different ways. Users on Robinhood trade leverage with stock options, while eToro offers contracts for difference (CFDs). They're both types of derivatives, but while the latter is common in Australia, CFDs are illegal in the United States.
Check out our comparison of fees and features in the table below.
How do eToro and Robinhood compare?
| Read our review | |
| Finder’s review | eToro is an easy-to-use platform with enough trading options to keep active traders interested. It has among the lowest fees for US, Hong Kong and European stocks on the market at $0 brokerage plus options outside of stock trading, including forex, cryptocurrency and commodities. | Robinhood is not available in Australia as of March 2023. It gets points for having low fees ($0 brokerage), no account minimums and an app that's intuitive and easy for beginners to pick up. On the downside, it has limited investment options, featuring only US stocks, ETFs and cryptocurrency. |
| Available stock exchanges | Australia, United States, Amsterdam, Brussels, Frankfurt, Lisbon, London, Madrid, Paris, Stockholm, Zurich, Hong Kong | United States |
| ASX stock brokerage fee | $0 | Australian stocks not available |
| US stock brokerage fee | US$0 | US$0 |
| UK stock brokerage fee | £0 | UK stocks not available |
| Inactivity fee | US$10 per month if you don't log in for 12 months | No |
| Currency conversion fee (for US stocks) | | Not applicable |
| CHESS or custody model | Custody model | Custody model |
| Benefits | - $0 brokerage. There are no broker (aka commission) fees when you trade stocks or invest in ETFs.
- Fractional shares. You can trade whole shares or fractions of shares (starting at $50 a trade).
- Copy trading. You can automatically copy the trade actions made by eToro "Top Traders".
- Stay connected. eToro's platform links you with users around the world so you can discuss, share and learn market ideas and trading strategies.
- Trade options. You have the choice of trading stocks, ETFs, crypto, forex and commodities.
- Mobile and desktop. It's suitable for use on both mobile apps and desktop.
| - $0 brokerage. It doesn’t charge any commissions or fees to trade stocks or ETFs.
- Fractional shares. You can trade whole shares or fractions of shares.
- Intuitive app. The app makes it easy for beginners to get started with trading.
- Cryptocurrency. One of Robinhood’s major selling points is its cryptocurrency support since not many platforms offer this feature.
- No account minimums. You can sign up for free and start trading with any amount.
|
| Drawbacks | - Currency conversion. The account base currency is always in USD, so you'll also need to convert your AUD to USD.
- No MetaTrader 4 (MT4). Some CFD or forex (CFD) traders prefer to use MetaTrader 4, which isn't an option on eToro.
- Inactivity fee. If you don't log in for more than a year, you're charged a US$10 per month inactivity fee.
| - Not available. You can't open an account from Australia unless you hold US residency.
- Limited support. There's no phone or live chat option for support.
- Limited investment options. You can’t invest in unlisted managed funds, forex or commodities with Robinhood.
|
| Tools and research | - Live feed. Keep up to date on company announcements and news by sharing info with peers.
- Stock statistics. Get price, P/E ratio, profit and revenue data for all listed stocks.
- Analyst ratings. Get stock market analysis and advanced research options when you sign up for the premium membership options.
- Conditional orders. There are market and limit orders available as well as a stop loss and trailing stop loss option.
| - Research. You get a feed of news articles about each stock, or for $5 more, you get beefier reports.
- Recurring investments. You can choose to automatically invest a set amount of money in a specific stock or ETF on a daily, weekly, biweekly or monthly basis.
- Cash management. You can earn interest (around 0.3%) on funds sitting in your account.
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| Platforms | Desktop, iOS, Android | Desktop, iOS, Android |
| Support | | |
| Learn more | Read our review | Read our review (Finder US) |
How do we rate brokers?
We use star ratings to help you identify strengths and weaknesses between different online brokers in Australia. To find an overall score, we take into account six key categories:
- Fees
- Available countries
- Available securities
- Trading tools
- Research and education
- Customer support
For more information about how we measure each feature, head to our methodology page and scroll down to "Star ratings".
Compare more brokers
Looking for something else? Check out our broker comparison table below to review the fees and features of others on the market.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
