Robinhood vs. FOREX.com

When choosing a platform for trading and investing, the decision often comes down to specific needs, preferences, and the assets you're targeting. Robinhood and FOREX.com are two popular platforms, but they cater to distinctly different audiences.

Robinhood is a user-friendly app designed for beginners and casual investors, offering commission-free stock, ETF, and cryptocurrency trading. In contrast, FOREX.com is a robust platform tailored to seasoned traders focused on forex and CFDs, providing advanced tools, a variety of trading instruments, and global market access.

In this article, we will discuss the strengths and features of each platform to help you decide which aligns better with your trading goals.

What is Robinhood?

Robinhood is a trading app that allows users to invest in stocks, ETFs, options, and even cryptocurrency without paying a commission. Founded in 2013 by two Stanford University graduates, it has since become one of the most popular investment apps on the market, particularly among younger generations.

What makes Robinhood popular is its user-friendly interface and accessibility. Users can quickly sign up for an account, link it to their bank account, and start investing with as little as $1. The app also offers educational resources and market data to help users make informed investment decisions.

However, it's important to note that Robinhood isn't without controversy. Some critics argue that the app encourages risky trading due to its commission-free model and easy accessibility.

>> Read our full Robinhood review

What is FOREX.com?

FOREX.com is a leading online currency trading platform that provides its users access to the global financial markets. The platform allows traders to buy, sell, and exchange currencies worldwide without physically possessing any currency. You can also trade options, futures, and gold and silver.

FOREX.com offers a wide range of tools and resources to help traders manage their investments and stay up-to-date on market trends. The user-friendly platform allows traders to quickly execute trades and monitor their portfolios from anywhere in the world. With its advanced trading technology and customizable interface, FOREX.com is a preferred choice for traders of all levels – from novice to experienced.

FOREX.com offers a comprehensive and reliable online trading experience that is trusted by traders all over the world. It provides the resources and support you need to make informed decisions and achieve your financial goals.

>> Read our full FOREX.com review

Quick Side-By-Side Comparison

Summary:

• Robinhood is best for trading stocks, options, and ETFs due to its simplicity and commission-free trading structure.
• FOREX.com excels in forex and precious metal trading, offering advanced tools, more account types, and better support for serious traders.

Robinhood vs. FOREX.com: Key Differences

Here are the key differences between both platforms to help you compare.

Fees

Robinhood offers commission-free trading for stocks, options, and ETFs. It also allows cryptocurrency trading, but you cannot withdraw your crypto to a private wallet—your coins stay with Robinhood.

For $5 a month, you can upgrade to a Robinhood Gold account, which allows margin trading with a $2,000 minimum deposit. The only major fee is a $75 outgoing transfer fee if you want to move your account to another broker, but this can be avoided by liquidating your positions and transferring the funds to your bank.

FOREX.com does not support direct stocks, options, or ETFs but offers 80+ forex currency pairs, spot gold, and silver. It charges commissions on the RAW Pricing account and $0 commissions on the Spread-Only accounts.

Mobile App

Robinhood’s mobile app, available for both Android and iOS, is designed for simplicity. It provides candlestick charts, news feeds, and customizable alerts. You can also listen to live earnings calls. While it lacks some advanced features compared to other apps, it is sufficient for stock, options, and ETF traders who need quick trade execution.

The FOREX.com mobile app, available for Android and iOS, offers real-time alerts, advanced charting tools, risk management features, and integrated fund management. You can also use the free MetaTrader 4 or 5 (MT4/5) app for even more advanced features.

The app includes a Reuters news feed, market analysis, economic calendars, and allows customization of the navigation bar and dashboard. It also supports watchlists, alerts, trailing stop orders, and conditional orders like OCO (one cancels the other).

Customer Support

Robinhood offers customer service only via email, with no live chat or phone support. While a phone number for their office in Menlo Park, California, exists, it redirects you to the website or app for support. Customer service is limited to emailing for assistance or using the extensive FAQ page for issue resolution.

FOREX.com offers customer support via email and live chat, available 24/5 during trading hours (10 a.m. Sunday to 5 p.m. Friday EST). There is no direct phone number listed, but the live chat feature provides real-time assistance.

Ease of Use

The Robinhood app is easy to learn and use, making it suitable for both new and experienced traders. You can quickly upload your information and start trading after depositing funds into your account.

The FOREX.com proprietary platform and MT4/5 are both easy to use. You can also open a demo account to practice trading with virtual money before trading with real funds.

Accounts and Features

Robinhood lets you trade stocks, stock options, and ETFs in your trading account but does not offer staff to assist you with your trades. Your account choices at Robinhood are limited to its free basic account and its Gold Account which costs $5 per month and lets you trade on margin. 

FOREX.com lets you trade over 80 currency pairs in the foreign exchange market and spot gold and silver in your trading account. If you’re interested in trading futures and options on futures, you can open an account with its FuturesOnline affiliate. In addition to its proprietary trading platforms, you can use the popular MT4/5 platforms with FOREX.com. 

You can open 3 types of accounts at FOREX.com: 

• Standard account: The free basic forex account offers competitive dealing spreads and no commissions. You also have the opportunity to reduce costs by as much as 18% via cash rebates.
• Commission account: The commission account features spreads as low as 0.2 on EUR/USD. Trades cost $5 commission per 100,000 base currency units traded. You cannot use MT4/5 with this account type. 
• STP Pro account: This premium account requires a $25,000 initial deposit and a minimum trade size of 100,000 to get direct access to top forex liquidity providers with multiple levels of real-time pricing. MT4/5 is also not supported.   

Final Verdict

Robinhood is highly recommended for:

• Stock, Options, and ETF Traders: Robinhood is a simple, commission-free platform designed for trading stocks, options, and ETFs. Its mobile app is intuitive and great for those who want fast, easy access to these assets. With no commissions and a user-friendly setup, it’s ideal for beginners or those looking for a straightforward trading experience.
• Low-Cost, Simple Trading: If you are looking for a low-cost, simple platform without the need for advanced tools or customer support, Robinhood offers just that. The Gold account option provides access to margin trading at an affordable cost, and its quick account setup makes it a good choice for new traders.

FOREX.com is highly recommended for:

• Forex and Precious Metals Traders: FOREX.com shines for those interested in trading forex or precious metals, offering 80+ currency pairs and spot gold and silver. The platform provides advanced tools like real-time alerts, charting, risk management features, and the ability to use MetaTrader 4/5 for even more advanced trading strategies.
• Advanced Tools and Account Options: FOREX.com supports a wide range of account types, including commission and STP Pro accounts, ideal for traders who want to access deeper liquidity and more customizable trading options. It also offers a demo account for those who want to practice before jumping into real trades.
• Better Customer Support and Platform Features: If you require more comprehensive support and features, FOREX.com’s live chat support, advanced charting, and integration with MT4/5 make it a superior choice for serious traders. The app is equipped with Reuters news feeds, economic calendars, and advanced order types, offering a robust suite of tools for forex traders.

Frequently Asked Questions