Robinhood pioneered zero-commission stock trading upon the launch of its mobile app in 2015. Soon after, most of the top stock brokers followed suit and offered commission-free trading. FOREX.com is one of the larger FX trading platforms in the U.S., with advanced research tools. Both brokers cater to particular markets and trader demographics. In this FOREX.com vs. Robinhood review, we'll take a closer look at both investment platforms, their fee structures, and the differences investors should know about before deciding which one to use.
| Offer | Robinhood | FOREX.com |
|---|---|---|
| Rating | Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 3.5 out of 5 stars. 3.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Commissions | $0 for stocks, ETFs, and options | Varies by account type |
| Account Minimum | $0 | $100 |
| Next Steps | Open Account for Robinhood Read Full Review | Read Review |
FOREX.com vs. Robinhood: Investments available
Robinhood offers stocks, exchange-traded funds (ETFs), options, fractional shares, and cryptocurrencies. FOREX.com is a global forex and CFDs (Contract for Differences) broker. The foreign exchange (FX) market is the largest and most liquid market in the world, but many of the top stock brokers (such as Robinhood) don't offer FX trading.
FOREX.com offers over 80 currency pairs and metals to customers in the U.S. and other countries. However U.S. investors cannot access other services including CFD trading. U.S. investors can use affiliate StoneX One to buy stocks, EFTs, and options. Future trading is available through another affiliate FuturesOnline. Separate accounts are needed to access these services.
Non-U.S. traders have access to stocks and cryptocurrency through CFDs. Investors trading CFDs do not own the underlying security, but instead trade a financial contract on the security. It is an advanced trading strategy used by experienced traders.
| FOREX.com (U.S. resident) | Robinhood | |
|---|---|---|
| Stocks and ETFs | No (only through StoneX One account) | Yes |
| Fractional shares | No | Yes |
| Options | No (only through StoneX One account) | Yes |
| Mutual funds | No (only through StoneX One account) | No |
| CDs | No | No |
| Bonds | No | No |
| Futures | No (only through FuturesOnline account) | No |
| Crypto | No | Yes |
| Currencies | Yes | No |
Data sources: FOREX.com, StoneX One, and Robinhood.
FOREX.com and Robinhood focus on different markets. As a result, the evaluation criteria for fees between both brokers are different. Robinhood offers zero-commission trading for stocks, options, ETFs, and cryptocurrencies. Investors can opt for a premium Robinhood Gold account for a monthly fee. Robinhood Gold members get access to lower rates on margin trading, larger deposits, Morningstar stock research reports, and higher interest rates on uninvested brokerage cash.
READ MORE: Best Online Stock Brokers for Beginners
FOREX.com charges a spread or commission based on trading volume. Pricing is based on the type of account a trader has with FOREX.com. For currency pairs, the spread is the difference between the bid and ask rates when trading currencies.
The bid-ask spread is the difference between the prices at which a broker buys and sells a currency. Traders looking to sell are quoted the bid price, and a trader looking to buy is quoted the ask price. Spreads vary based on the currency, the time of day, economic conditions, and the broker. Pricing is transparent and the live spreads are available on FOREX.com.
| FOREX.com (U.S. resident) | Robinhood | |
|---|---|---|
| Stock & ETF commissions | Not available | $0 |
| Forex / FX | Fees depend on the type of account. Traders pay a spread, a commission, or both. | Not available |
| Options commissions | Not available | $0 |
| Crypto commissions | Not available | $0 |
| Mutual fund commissions | Not available | Not available |
| Account transfer fee | $0 | $100 |
| Account maintenance fee | $15 inactivity fee per month if there is no trading activity for 12 months | $0 |
Data sources: FOREX.com and Robinhood.
FOREX.com vs. Robinhood: Account types available
Robinhood's bread and butter is its taxable brokerage account. It also offers Roth, traditional, and rollover IRAs. However, investors cannot open a joint account, trust account, or a custodial account with the broker. Robinhood's spending account gives many of the benefits of a checking account, including a debit card with fee-free ATM withdrawals and FDIC insurance. Robinhood also lets customers earn interest on uninvested cash through its brokerage sweep program.
FOREX.com offers traders an individual account, a joint account, trust account, and an IRA. Traders can open their accounts on FOREX.com's platform or MetaTrader Account's platform. An IRA can be opened on FOREX.com through one of three partner custodians: Midland IRA, Millennium Trust Company, or Equity Trust Company. Traders fund their IRAs by sending funds directly to the trust company.
| FOREX.com | Robinhood | |
|---|---|---|
| Individual taxable | Yes | Yes |
| Joint tenant | Yes | No |
| Corporate | Yes | No |
| Partnership | Yes | No |
| Trust | Yes | No |
| Margin | Yes | Yes |
| Robo-advisor | No | No |
| Traditional IRA | Yes | Yes |
| Roth IRA | No | Yes |
| Other IRA | No | Rollover IRAs |
| Custodial | No | No |
| Checking | No | Yes (through spending account) |
| Savings | No | Yes (through brokerage sweep) |
| Credit card | No | No |
| Debit card | No | Yes |
Data sources: FOREX.com and Robinhood.
Robinhood has a highly rated mobile app for Android and iOS devices. It also has a web-based version of its mobile app so traders can trade on a desktop. Robinhood lacks many advanced trading tools, but makes up for it in its simplicity. The platform is more than adequate for traders who want timely execution of trades.
FOREX.com has an easy-to-use trading platform, and traders have several versions to choose from. Traders can use FOREX.com's web platform, its iOS and Android app, desktop trading platform, or a third-party FX trading platform called MetaTrader.
FOREX.com has teamed up with TradingView, one of the top charting technology companies, to offer advanced tools for technical analysis and trading. There are over 90 indicators to choose from. Traders can create their own customized indicators and charts.
Final take
FOREX.com and Robinhood are both popular trading platforms, but cater to different trader demographics. FOREX.com is best for investors who want to trade FX or learn more about trading FX. Robinhood is best for traders who want to trade U.S. stocks, options, and cryptocurrencies with ease.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, ETFs, and options | $0 | Open Account for Robinhood |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Commission-free; other fees apply | $0 | Open Account for E*TRADE |
Rating image, 4.0 out of 5 stars. 4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 per trade | $0 | Open Account for J.P. Morgan Self-Directed Investing |
FAQs
U.S. residents can open an account with FOREX.com and access its foreign currency trading services. However, CFD trading is not available in the U.S. and the platform does not offer many traditional broker services such as stock, EFT, and option trading. U.S. investors could access a wider range of investments by opening separate accounts with affiliate companies.
Robinhood is currently only available to U.S. residents. The broker is licensed in all 50 states and Washington D.C.
All investments carry risk, including the foreign exchange market. Forex trading essentially involves buying and selling different currencies and carries different risks from, say, investing in the stock market. Currency fluctuations can be difficult to predict, markets can be volatile, and there are limited investor protections. As an investor, it's important to understand the risks involved, particularly if you are using margin, and take steps to mitigate them.
Our Brokerages Experts
By:David Chang, ChFC®, CLU®
Writer, Consultant
David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.
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