Robinhood is a FINRA member and offers SIPC protection up to $500,000 per net equity or $250,000 for cash claims. It remains duly registered as a Money Service Business with the Financial Crimes Enforcement Network (FinCEN). eToro has the necessary licensing to legally conduct its business in the US.
The eToro trading platform is not a member of the Financial Industry Regulatory Authority (FINRA), and the Securities Investor Protection Corporation (SIPC) does not ensure cryptocurrency portfolios. US US Securities and Exchange Commission (SEC) Undisclosed Robinhood - Verdict Features and Platforms We have conducted an in-depth review of eToro and Robinhood to determine which one presents the better overall choice and which traders will benefit the most at either broker. Beginner traders get a quality educational section at both, where eToro relies on videos and Robinhood on written content. Both present market commentary but lack actionable research. Neither one supports algorithmic trading, but eToro brings its known copy trading service to US traders.
Robinhood has a controversial history and lacks overall transparency but has pioneered commission-free trading in the US and remains a popular choice among millennials and GenZ traders.īoth brokers offer their proprietary trading platforms, where eToro takes a notable lead. While the US offering of eToro remains limited to the cryptocurrency sector, it has plans to expand into equity and ETF trading.
EToro launched in the US in 2019, adding to its massive international trading community numbering over 20 million.