Public Vs Robinhood Fees & Pricing
Like many other online brokers, both Robinhood and Public offer commission-free stock and ETF trades. However, Robinhood also offers commission-free options trading which is one of its main selling points.
In terms of crypto, Public charges a 1-2% spread fee since orders are routed through Apex Crypto. Robinhood doesn’t disclose its crypto spread fees and somewhat misleadingly says it’s fee-free. While this is technically true, trading crypto on Robinhood is fairly similar to Public.
Both brokers can also charge miscellaneous fees, like wire transfers or returned check fees. One difference is that Public charges an inactivity fee of $5 every six months for accounts with less than $20 and no activity for the last 90 days. In contrast, Robinhood doesn’t charge inactivity fees. But overall, both brokers have similar trading and account fees.
Public Vs Robinhood Cryptocurrency Support
Recently, both Public and Robinhood have expanded into cryptocurrency investing. This makes them similar to platforms like eToro and FTX that both offer securities investing and crypto, while some more old-school brokers are still playing catch up.
Currently, Public supports 29 cryptos which is almost double the amount Robinhood supports. Both apps lets you invest in major cryptos like Bitcoin, Ethereum, and some popular altcoins. But Public is the clear winner in terms of selection.
As mentioned, Robinhood doesn’t disclose the spread fees for crypto while Public’s partner Apex Crypto charges about 1-2% per trade. It’s difficult to compare both brokers head-to-head on crypto, but we don’t think either option is great for digital currencies anyways.
You get way more selection and features by sticking with a crypto exchange. For example, crypto exchanges like Crypto.com support 200+ cryptos, have staking and lending, and offer more advanced trading tools. You can use apps like Public or Robinhood for simplicity, but know that you’re missing out on more trading pairs and potentially lower fees.
Can I Transfer Crypto From Coinbase To Robinhood
You cant transfer any coins into or out of Robinhood. To use Robinhood, you must purchase crypto using the USD fiat currency via a connected bank account. You cant move your coins unless you sell them for cash. Coinbase provides a digital wallet for users, so you can transfer supported currencies to your Coinbase wallet and use it to make crypto to crypto trades.
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Cryptocom Vs Robinhood: Cryptos Available
With over 250 cryptocurrencies on its platform, Crypto.com comes out a long way ahead of Robinhood in terms of available cryptos. In contrast, Robinhood offers fewer than 15 cryptos. However, you can’t buy other assets such as stocks and ETFs on Crypto.com
READ MORE:Cryptocurrency Availability: Where Can You Buy Your Favorite Tokens?
Not only is Robinhood’s selection small, the cryptos it does offer are not the most popular ones. Bitcoin , Ethereum , and Solana are the only top 10 cryptos by market cap that you can buy on the trading platform. You can’t buy popular tokens like Cardano and Avalanche , and there are no stablecoins available on the platform.
In contrast, Crypto.com customers can buy most of the top 20 coins by market cap, as well as several stablecoins. It also sells a number of smaller cryptocurrencies that are not available on other platforms.
What Is Robinhood Crypto
Robinhood began as a purely online stock brokerage service in 2013. It became famous for offering commission-free stock trading. In 2018, Robinhood launched Robinhood Crypto, to offer cryptocurrency to Robinhood users.
Just like its stock-brokerage service, Robinhood Crypto offers commission-free sales. It also offers a default no-withdrawal option for ultra-secure crypto investing.
Pro Tip: Are you wondering which crypto to buy at Robinhood or another exchange? You may want to check out our list of the best cryptocurrencies.
Now lets discuss the security at Robinhood Crypto.
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Robinhood Crypto Customer Service
Robinhood offers 24/7 customer service support over the phone. To receive a phone call from staff, first select help from the accounts tab in the upper right corner. Then, select contact us, and follow the steps to enter your phone number and request a phone call.
You dont have to call and be put on hold. Just go back to whatever you were doing the staff will call you when your turn in line comes up.
I found it refreshing to see that Robinhood offers phone support, since most crypto exchanges only offer support through an email ticketing system.
Robinhood Soars After 30
Its been a brutal year for Robinhood. The twin plunges of stocks and bitcoin have crushed the online brokerages sales. The company also reported a loss and drop in users. The stock has plummeted 40% this year and Robinhood recently announced a big round of layoffs.
But there could be hope on the horizon.
Shares of Robinhood surged more than 25% Friday after an investment firm run by 30-year-old crypto billionaire Sam Bankman-Fried disclosed in a Securities and Exchange Commission filing that it has bought a 7.6% stake in the company.
Bankman-Fried, who runs the startup FTX, a cryptocurrency exchange based in the Bahamas, said in the filing that he bought Robinhood shares because he believes they represent an attractive investment. He added that his stake is meant to be a passive investment and that he does not currently have any intention of taking any action toward changing or influencing the control of Robinhood.
appeared to be passive before the Tesla and SpaceX CEO changed his mind and then a deal that now is on hold.)
FTX has taken the crypto world by storm,attracting more than a million users since launching in 2019, so having its founder as a strategic investor in Robinhood could help give the brokerage more credibility, not to mention a backer with lots of money at his disposal.
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Robinhood And Ftx Us Have A Holder In Common
Traditionally, retail investors go to their brokers and say they want to buy or sell such and such a share. This stock is traded on an exchange, where you can buy it for, say, $5.02 or sell it at $4.96. These prices on the stock exchange are called national best bid and offer.
They are set by market makers and high-frequency electronic traders who are in the business of buying from sellers and selling to buyers.
The difference between the purchase price and the selling price stems from what market makers say is the risks they take by enabling these trades.
Retail brokers do not send their clients’ orders directly to the stock market, where they will face price competition from large institutional investors such as hedge funds. Rather, the brokers pay market makers, who execute the orders and are supposed to get better prices for the clients.
But for the defenders of retail investors, like the investor-advocacy movement #WeTheInvestors , there is a duopoly among market makers, which is unfavorable to retail investors.
The U.S Securities and Exchange Commission is looking into this practice.
The looming rivalry between FTX US and Robinhood is interesting as Bankman-Fried recently acquired 7.6% of Robinhood’s capital. Persistent speculation wonders whether the billionaire might try to acquire Robinhood.
“This was something that I saw as an attractive investment, and there are a lot of areas for the company to grow and innovate going forward,” Bankman-Fried told Axios in May.
Robinhoods Crypto Wallet Goes Live
On Apr. 7, Robinhood rolled out its crypto wallet, allowing customers to transfer cryptocurrencies into and out of their Robinhood Crypto accounts on a commission-free basis.
The crypto wallets require identity verifications through a photo of a government-issued ID and a live photo or selfie. The wallet has two-factor authentication and limits sending $5,000 worth of crypto and up to 10 transfers in a 24-hour period. As of April 14, Robinhoods crypto wallet supported , , , , , , and .
The wallet is available to all eligible customers, amounting to over two million people. However, customers in Hawaii, Nevada, and New York are not eligible because of local regulations.
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Robinhood’s Stock Price Has Fallen 78% From Its High So The Company Needs To Make Some Big Changes
Stock trading platform Robinhood Markets was once the recipient of significant praise from the investment community for its success in attracting coveted younger users like Generation Z that other brokers never could.
In fact, up to half of Robinhood’s customers are entering the financial markets for the very first time. But in an attempt to maintain these users, the company made significant changes to its product offering. While it’s best known for stocks and options broking, Robinhood now has an enormous cryptocurrency broking segment.
Image source: Getty Images.
The company has suffered intense regulatory scrutiny, and this shift into crypto might complicate things further. With Robinhood’s stock down 78% from its high, the question is whether it should lean more into this new area, or pull back.
Is Robinhood Crypto Right For Me
Robinhood Crypto is an excellent exchange for crypto beginners. If youve used a stock brokerage account before, the experience of using Robinhood Crypto will probably feel very familiar. You can search for whatever coin you want, buy it, and watch it go up and down in value over time.
Each day, you can check your portfolio of crypto investments to see how they are doing. And if you want to sell and withdraw cash, you can do so simply and easily.
So for beginners, Robinhood Crypto is a great place to get started.
And if you decide later that you want to withdraw your crypto, store it in a wallet, and get started making crypto payments or using decentralized applications , you can sign up for Robinhood Crypto Wallet.
However, if youre an experienced crypto user who is comfortable making crypto withdrawals, there may be exchanges that are better suited to you than Robinhood. For example, you may want to try Coinbase or Crypto.com. Both of these exchanges have superior coin selection compared to Robinhood Crypto, and they both make withdrawing easy.
FYI: Weve written and published a Coinbase review and a review of Crypto.com with more information about these exchanges.
Robinhood also might not be best for serious crypto day traders, since it doesnt allow you to draw trendlines, use indicators or other tools you might be used to.
But for people new to crypto, Robinhood Crypto is a great choice.
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Goldman Sachs Is Dubious On The Company
Robinhood shares trade on the NASDAQ. The stock tanked after reaching a high of $85 on Aug. 4, 2021. It closed on Thursday at $11.38.
The chart highlights the decline in HOOD shares which are now hovering not far above the most recent $9.93 low.
In April, Goldman Sachs analysts downgraded Robinhood to Sell from Neutral, stating that softening retail engagement levels and a limited path to near-term profitability probably would be drags on the stocks performance into 2023. HOOD’s crypto wallet could be a potential game-changer for the stock and the company.
Cryptocurrency custody is, after all, a significant factor for the burgeoning asset class. Robinhoods crypto wallet and Blocks forthcoming rock wallet are steps along the road toward mainstream acceptability.
Who Should Use Coinbase Or Robinhood
First-time investors and people who want to invest small amounts find Coinbase and Robinhood extremely user-friendly. Both platforms are excellent for beginners. However, Coinbase fees can take a chunk out of your investment, whereas Robinhood doesnt charge a commission, so users may pay less per trade.
People who dont want to withdraw crypto and prefer a single platform to trade crypto, ETF, stock, and options use Robinhood because you can only trade crypto on Coinbase. But if you want to remove your coins or have more cryptocurrency choices, Coinbases 51 coins and digital wallet offer a better solution.
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Can Track 14 Cryptocurrencies
While the Robinhood app will only allows users to buy and sell bitcoin and ether, the two most popular cryptocurrencies and the two largest digital currencies in the world by market cap, it will also allow interested investors to monitor the prices of more than a dozen other digital currencies through the app.
These other trackable currencies include bitcoin cash, XRP, ethereum classic, litecoin, zcash, monero, bitcoin gold and dogecoin, the meme-turned-cryptocurrency.
Digital currencies have been bombarded with media attention over the past year, but they remain a niche area for traditional investors. Robinhood hopes to change that. By launching cryptocurrency trading and tracking, the app’s developers aim to bring the new industry to a larger potential audience of investors.
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Cryptocurrencies Supported On Robinhood Crypto
Robinhood has a fairly weak coin selection compared to most crypto exchanges. If you only want the most popular cryptos, you can find them at Robinhood. But if youre looking for the newest coins that have just started being hyped on crypto news sites, you may be disappointed with Robinhoods offering.
Only 11 coins are available. Here is a complete list:
While it doesnt have much to choose from, the good news is that all of the major cryptos are here. So if you just want to dip your toes in the top of the crypto pool, Robinhood will give you what you want.
FYI: Some coins grow in value over time, while others may flounder forever. To help distinguish between the two, Ive written a guide to how a cryptocurrency gains value.
One of the best things about Robinhood is how easy it is to set up an account and start trading. So Ill go over that next.
Why Is The Estimated Buy Price Different From The Estimated Sell Price
The difference between the estimated buy and sell price is called the spread. The size of the spread is a measure of the liquidity of the market, or how quickly and easily you can convert between cash and this crypto. Typically, if more people are trading a crypto, it’ll be easier to find someone willing to trade with you. This is why you may see smaller spreads for better known crypto like Bitcoin, and larger spreads for lesser known crypto.
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Public Vs Robinhood Customer Service
Currently, both Public and Robinhood offer email support. Public also offers live chat support, Monday through Friday, from 9am to 5pm ET. In contrast, Robinhood offers 24/7 phone customer support, making its customer service department far more available than Public.
You still have to log in to Robinhood’s app and go through a few steps to get in touch with customer support. But the fact support is available 24/7 is one advantage over Public.
Trading Platform Robinhood Lays Off Nearly A Quarter Of Staff As Crypto Drops
The news comes on the heels of a dire revenue report, with company shares taking a 3% tumble in extended trading
Robinhood, the trading platform that gained notoriety for allowing amateur stock investors to play the market, is laying off nearly a quarter of its staff citing economic conditions and the crash of the cryptocurrency market.
The news it was slashing 23% of its staff came as the company posted a 44% decline in revenues on slumping trading activity, in a surprise earnings report that came one day earlier than scheduled, and sent the companys shares down more than 3% in extended trading.
The company will lay off about 23% of its employees as part of a reorganization, said its CEO, Vladimir Tenev, in a blogpost. Last year, we staffed many of our operations functions under the assumption that the heightened retail engagement we had been seeing with the stock and crypto markets in the Covid era would persist into 2022, wrote Tenev.
Since that time, we have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.
Robinhood had already slashed 9% of its workforce in April, saying the companys growth had led to some duplicate roles and job functions. Tenev said on Tuesday that those cuts did not go far enough.
As CEO, I approved and took responsibility for our ambitious staffing trajectory this is on me, Tenev said.
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How To Deposit Bitcoin And Other Cryptos On Robinhood
Buying and selling crypto assets is only possible with the Robinhood app. There were announcements about Robinhood possibly enabling cryptocurrency deposits, such as Dogecoin. The announcement was made on Twitter. Despite being in the works, there was no particular date shared for it. So, at the moment, you have to buy and sell assets using the app.
How To Buy Bitcoin On Robinhood 2022
Robinhood is a commission-free stock and crypto trading mobile app that is hugely popular among millennials and Gen Zers. Known for its sleek user interface and completely free trading, Robinhood has amassed over 13 million users who are passionate about investing.
Though popular among many for its free stock trades, Robinhood also allows its members to transact in cryptocurrencies. There are currently 15+ tradable cryptocurrencies on the app.
This wide range of availability is great for investors who want access to the most popular coins but leaves something to be desired for those who want the less well-known options.
Check out our video below on how to buy Bitcoin on Robinhood!
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