Both FOREX.com and Robinhood are prominent trading platforms, yet they serve two distinct populations of traders. FOREX.com is the most acceptable option for those who wish to trade foreign exchange or learn more about it. Robinhood is ideal for traders who wish to easily trade U.S. equities, options, and cryptocurrency.
Robinhood debuted commission-free stock trading with its mobile app debut in 2015. Soon afterward, the majority of leading stockbrokers provided commission-free trading. With comprehensive research tools, FOREX.com is one of the largest FX trading platforms in the United States. Both brokers cater to distinct markets and demographics of traders. In this FOREX.com vs. Robinhood.com comparison, we will examine both platforms in further detail.
FOREX.com Overview
Established in 2001 as a subsidiary of GAIN Capital Holdings, FOREX.com caters to retail FX and CFD traders globally. StoneX Group Inc. acquired GAIN Capital in 2020. GAIN Capital Holdings is a conglomerate consisting of online CFD and spread betting provider City Index and futures advisory trading firm Daniels Trading. StoneX Group Inc., a publicly listed firm (NASDAQ: SNEX), states in its advertising that it “connects customers to global markets across asset classes through institutional-grade platforms, end-to-end clearing and execution, and high-touch expertise.”
Globally, FOREX.com provides various products across several asset classes, including CFDs, spread betting, and futures. However, not every service is available in every place it serves. In addition to forex, from which it takes its name, FOREX.com provides trading options in commodities, indices, individual stocks, bonds, ETFs, gold & silver (unleveraged in the US), cryptocurrencies, and futures for all sorts of traders. FOREX.com (U.K.) also provides safety for customer accounts, such as ESMA-mandated negative balance protection and guaranteed stop loss orders.
FOREX.com provides U.S. clients with leveraged access to more than 80 currency pairs with competitive spreads across various account types. FOREX.com is among the elite online brokers due to its well-organized and accessible website, clearly stated services and fees, different user interfaces, education and research facilities on par with industry standards, and regulatory control.
Robinhood Overview
Robinhood distinguished itself as an innovator in the brokerage sector. Its most extraordinary competitive edge was that it does not charge commissions for trading stocks, options, and cryptocurrencies. This advantage has been nullified as the majority of brokerages have eliminated commissions. Despite increased price competition, Robinhood has developed a strong brand and niche market among young, tech-savvy investors by focusing on design and user experience fundamentals. Recently, the broker launched cash management services and a recurring investment option to attract new clients and strengthen the financial connection with current ones.
Even though Robinhood’s user base has risen tremendously over the past several years, the company’s success has led to increased scrutiny. Recently the platform has also been criticized for unexpected outages and purposeful trading limits during market turmoil. This prompted many individuals to infer a conflict of interest, resulting in class action lawsuits and attracting the attention of politicians.
With over 13 million users and an average age of 30+, it is evident that Robinhood has positioned itself to be excellent for younger investors who want to get their hands dirty, even if that means purchasing fractional shares in modest numbers.
Overall, Robinhood’s simplicity makes the app and website easy to utilize.
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FOREX.com vs. Robinhood Service & Feature Comparison
Costs
FOREX.com and Robinhood both specialize in specific markets. Consequently, the evaluation criteria for fees varied across the two brokers. Robinhood offers commission-free stock, option, ETF, and cryptocurrency trading. Investors can pay a $5 monthly charge for a Robinhood Gold account. Gold members are granted access to margin trading (including $1,000 in interest-free margin), more significant deposits, and Morningstar stock research reports.
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In place of fees, FOREX.com charges a spread or commission based on trading volume.FOREX.com charges a spread or commission based on trading volume. Pricing is dependent on the type of FOREX.com account a trader has. Spread refers to the difference between the bid and ask rates when trading currency pairs.
The bid-ask spread is the difference between the prices a broker pays to purchase and sell a currency. The bid price is communicated to sellers, while the ask price is communicated to buyers. Spreads fluctuate depending on the currency, the time of day, economic conditions, and the broker. Live spreads are provided on FOREX.com, where pricing is transparent.
Account Types
Robinhood provides individual brokerage accounts but not Individual Retirement Accounts. Investors wishing to open an IRA will need to locate a different broker. In addition, Robinhood does not permit the opening of joint accounts, trust accounts, or custodial accounts.
Similar to bank and savings accounts, Robinhood Cash Management is an account that earns interest. Robinhood is not a bank and therefore does not offer FDIC protection. Robinhood offers a debit card that utilizes a trader’s brokerage account’s available funds.
FOREX.com offers traders individual accounts, joint accounts, trust accounts, and IRAs. Traders can open accounts on either the FOREX.com or MetaTrader Account platform. A Traditional Individual Retirement Account (IRA) can be created on FOREX.com through partner custodians: Midland IRA, Millennium Trust Company, or Equity Trust Company. Traders finance their IRA accounts by transferring monies directly to the trustee.
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Education and Research
The arrangement of FOREX.com’s educational courses is aligned with industry standards. Customers can access material based on their experience level or by topic. Except for “technical analysis” topics available on the platform, all content can only be accessed through the website.
There are three levels of client experience: beginner, intermediate, and advanced. Moreover, topics span from the industry standard of covering market fundamentals such as fundamental and technical analysis, risk management, and trading methods to platform lessons. There is also a thorough lexicon accessible.
Robinhood’s educational services are not as vital as they could be, given that their ideal client is a beginner investor. Robinhood provides its consumers with Snacks, a podcast, email, and video series each weekday that presents the best financial news articles of the day. As of August 2020, according to the broker, more than 20 million individuals had signed up for the weekly email, and 2 million people actively listened to podcasts each month. Robinhood has lately embraced video as a new format for its Snacks content to make financial news less scary by using engaging and informative images.
Additionally, Robinhood has launched a resource called Learn, which provides financial facts, definitions, and market explanations to educate you on financial words and ideas. Since January 2020, Robinhood has published more than 650 articles on Learn and has seen a 250% rise in the average number of unique daily visits to its Learn pages.
Range of Investments
Robinhood provides access to stocks, ETFs, options, fractional shares, and cryptocurrency. FOREX.com is a global forex provider and CFDs (Contract for Differences). Foreign exchange (FX) is the world’s largest and most liquid market. However, several prominent stockbrokers, like Robinhood, do not provide FX trading.
Through an account with its subsidiary FuturesOnline, FOREX.com provides over 80 currency pairings, metals, and futures. FOREX.com does not provide U.S.-based traders access to equities, options, or cryptocurrencies.
Through an account with its subsidiary FuturesOnline, FOREX.com provides over 80 currency pairings, metals, and futures. FOREX.com does not provide U.S.-based traders access to equities, options, or cryptocurrencies.
Trading Technology & Mobile Apps
Robinhood provides a mobile application for both iOS and Android smartphones. It also offers a web-based version of its mobile app, allowing traders to trade from a desktop computer. Robinhood lacks complex trading capabilities but makes up for them with its ease of use. The platform is more than sufficient for traders that desire rapid trade execution.
Multiple versions of FOREX.com’s user-friendly trading interface are available for traders to select from. Traders may utilize FOREX.com’s online platform, iPhone and Android apps, desktop trading platform, or MetaTrader, a third-party FX trading platform.
FOREX.com has partnered with one of the leading charting technology firms, TradingView, to provide enhanced technical research and trading tools. There are over 90 available indications. Traders can construct their own indicators and charts.
FOREX.com’s mobile platforms offer far more capabilities and research opportunities than Robinhood’s single basic mobile interface. Robinhood should be used to trade stocks, stock options, and ETFs, whereas Currency.com should trade spot forex or precious metals.
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Customer Service
Robinhood’s customer support is only available via email; there is no live chat or phone number to reach a real person.
After some searching, a phone number for Robinhood’s headquarters in Menlo Park, California, was located; nevertheless, the answering machine directed callers to the website or mobile app for more help.
Therefore, Robinhood’s customer service is confined to emailing the broker with the specifics of your difficulty or examining its vast frequently asked questions (FAQ) website, where you may click on a link to get more information about a particular issue.
The customer service of FOREX.com allows you to contact the broker by email and live chat. Despite the lack of a direct phone number on its website, FOREX.com’s live chat service is available 24 hours a day during the trading week from 10 a.m. Sunday to 5 p.m. Friday EST.
Although neither broker provides a direct phone number for customer service, FOREX.com offers live chat, whereas Robinhood does not. Both brokers have large FAQ sites, but FOREX.com wins this area due to Robinhood’s restricted customer care alternatives.
My Preference: FOREX.com Wins Over Robinhood
Suppose you are new to investing and have a modest starting amount. In that case, Robinhood might be an excellent location to get experience. The mobile-first broker has a straightforward app and website, making buying stocks and ETFs accessible. Despite the inability to personalize the user experience, the app and website provide all the necessities a new investor would want. Robinhood’s contemporary issues may have damaged its reputation among some of the younger investors it seeks. Nonetheless, the corporation offers commission-free stocks, ETFs, options, cryptocurrencies, and applications that are nearly addicting for trading them. Before planning, new investors must examine the lack of transparency in paying for order flow and other difficulties.
Assuming you are a diligent investor or trader. As Robinhood does not offer complex charting, screeners, etc., far better alternatives are available.
Overall, FOREX.com satisfies the majority of requirements for a competent broker. However, the perception is that it might be much improved if the key income producer – the consumer – received more attention.
s transparent.
FOREX.com vs. Robinhood: The Bottom Line
Robinhood does not provide forex trading services; consequently, it is not a suitable option for FX traders. However, open-minded traders who appreciate flexibility would find the Robinhood app an ideal investing strategy as it allows individuals to trade various assets. For instance, the Robinhood crypto environment is quite robust. There are several digital asset possibilities that you may utilize.
Forex.com, a specialized forex broker, offers over 80 currency pairings and access to CFD trading. Forex.com, unlike Robinhood, does not provide its clients the advantages of stock or cryptocurrency trading platforms, which is a little disadvantage that prohibits Forex.com clients from having the same freedom.
Forex.com, a specialized forex broker, offers over 80 currency pairings and access to CFD trading. Forex.com, unlike Robinhood, does not provide its clients the advantages of stock or cryptocurrency trading platforms, which is a little disadvantage that prohibits Forex.com clients from having the same freedom.
FAQ
Is FOREX.com or Robinhood better?
The most outstanding feature of Robinhood is that it gives its members the option to acquire cryptocurrency. This is an outstanding addition to Robinhood's collection of assets and financial instruments.
Additionally, Robinhood permits margin trading with an upgraded account. You may considerably enhance your income by borrowing cash for $5 each month.
Forex.com provides direct market access, facilitating forex traders' navigation of the market. In addition, Forex.com offers FX fans business news, a crucial component of any trading platform that serves to grow the next generation of traders. However, FOREX.com’s newsfeed is not the only means through which it educates its visitors.
Does Robinhood allow currency, futures, and commodities trading?
Robinhood does not provide trading in FX, futures, or commodities.
Are there trading limits on Robinhood?
You are limited to three stock trades each week.