Robinhood vs. FOREX.com • Which Platform is Better? • Benzinga

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Two very totally different brokers for various dealer demographics are the main target of this comparative Benzinga evaluation. Robinhood was one of many first on-line brokers to supply commission-free buying and selling of listed shares and choices, whereas FOREX.com is the biggest U.S. foreign exchange dealer and makes spot foreign exchange and valuable metals buying and selling accessible to U.S. purchasers. Each brokers keep wonderful reputations of their respective fields, so learn on to search out out which dealer most closely fits your wants.

Account Minimal

$0
to open an account

Account Minimal

$0
to open an account

1 Minute Evaluation

Robinhood is the dealer for merchants who desire a easy, easy-to-understand structure with out all of the bells and whistles different brokers supply. Although its buying and selling choices and account sorts are restricted, even an absolute newbie can shortly grasp Robinhood’s intuitive and streamlined platform. Then again, extra superior merchants is likely to be pissed off by Robinhood’s lack of technical evaluation instruments, a characteristic that’s now almost common throughout different platforms.

Finest For

Newbie merchants
Cell merchants

Execs

Streamlined, easy-to-understand interface
Cell app with full capabilities
Should purchase and promote cryptocurrency

Cons

Nearly no buying and selling evaluation instruments accessible
Solely taxable brokerage accounts accessible
No choice to open a retirement account
No entry to mutual funds, foreign exchange or futures buying and selling
Restricted customer support

Account Minimal

100 of your chosen base forex

Account Minimal

100 of your chosen base forex

1 Minute Evaluation

FOREX.com is a one-stop-shop for foreign exchange merchants. With an enormous vary of tradable currencies, low account minimums and a formidable buying and selling platform, FOREX.com is a superb alternative for brokers trying to find a house base for his or her forex buying and selling. New merchants and seasoned veterans alike will love FOREX.com’s intensive schooling and analysis middle that gives free, informative foreign currency trading programs at a number of ability ranges. Whereas FOREX.com is spectacular, keep in mind that it isn’t a typical dealer. You possibly can’t spend money on the inventory or bond market by your FOREX.com and you can not open an account with tax benefits. The complicated pricing and margin constructions can also be overwhelming for brand spanking new foreign exchange merchants.

Finest For

MetaTrader 4 customers
Newbie foreign exchange merchants
Lively foreign exchange merchants

Execs

Spectacular, easy-to-navigate platform
Wide selection of schooling and analysis instruments
Entry to over 80 currencies to purchase and promote
Leverage accessible as much as 50:1

Cons

Can not purchase and promote different securities (like shares and bonds)
Complicated margin necessities that modify by forex
Restricted buyer assist choices
Can not open an IRA or different retirement account

Since Robinhood and FOREX.com concentrate on totally different markets, their charges and commissions are tough to match. The buying and selling prices related to each brokers are outlined under.

What Robinhood Affords

Robinhood provides commission-free buying and selling in shares, inventory choices and exchange-traded funds (ETFs). Robinhood additionally provides cryptocurrency buying and selling, though you will need to depart your whole cash with Robinhood. This implies you can not withdraw your cash to your personal non-public pockets or maintain the keys to your crypto property.

For a $5 month-to-month charge, you possibly can choose right into a Robinhood Gold account, which helps you to commerce in a margin account with a $2,000 minimal deposit. The best charge charged at Robinhood is a $75 outgoing account switch charge that you simply’ll must pay if you wish to switch your account to a different dealer. This charge will be prevented by liquidating your whole positions and having Robinhood switch the ensuing funds to your financial institution.

What FOREX.com Affords

FOREX.com doesn’t assist buying and selling in shares, inventory choices or ETFs, however you possibly can commerce spot gold and silver along with 80 foreign exchange forex pairs. FOREX.com doesn’t cost commissions on transactions both. The net foreign exchange dealer as a substitute makes its cash on a foreign exchange commerce by way of the dealing unfold. The dealing unfold consists of the distinction between the bid and the supply change charge for a forex pair. The tighter the unfold, the extra advantageous to merchants.

The price of your foreign exchange commerce will be decided by the “mid-point unfold value,” which is the midpoint of the dealing unfold on the time of your transaction in comparison with the speed you dealt at. Throughout markets the place excessive volatility is at play, dealing spreads can widen significantly and might thereby end in a better mid-point unfold value in your trades.

Moreover, stop-loss orders triggered in a quick market can also be crammed at a considerably worse charge than the extent specified, which is named “slippage” and represents one other potential buying and selling value. Holding in a single day positions may also end in rollover fees, whereas the dealer fees an inactivity charge of 15 accounting forex items after 12 months.

Higher Platform: It Relies upon

You pay solely the dealing unfold in transaction charges at each brokers. One of the best platform will due to this fact be Robinhood if you wish to commerce shares, inventory choices or ETFs, whereas it is going to be FOREX.com if you wish to commerce spot foreign exchange or valuable metals.