You’re prepared to start your funding journey, however it could really feel overwhelming to decide on the precise platform with so many choices on the market. We get it—and we’ve obtained you lined.
Robinhood and Public.com are two of the largest names within the recreation. How do you determine which one is best for you? We all the time advocate studying about funding platforms earlier than you employ them.
On this Public vs Robinhood overview, we’ll reveal what makes these two platforms comparable, in addition to what makes every distinctive. We’ve included details about options, the person expertise, charges and prices, and our tackle which sort of investor every platform is finest suited to.
By the point you’ve completed studying, you’ll have a deal with on how Public and Robinhood evaluate and which platform you need to use to start out investing.
Overview of Robinhood and Public.com
Let’s begin with an summary of every platform to offer you a stable base of understanding of what every has to supply.
Robinhood
Robinhood is a mobile-first digital buying and selling platform that obtained its begin again in 2013, when Vladimir Tenev and Baiju Bhatt integrated as Robinhood Markets, Inc. Their objective was to democratize investing by making it free, straightforward, and addictive. They launched the Robinhood app in March of 2015. The corporate is a licensed broker-dealer and a member of the Securities Investor Safety Company, SIPC.
In its early years, a lot of the corporate’s progress was achieved by buying corporations resembling Say Applied sciences, Cove Markets, X1, and Chartr.
They’ve additionally grown by frequently providing new merchandise. After they first introduced the addition of cryptocurrency to their listing of obtainable property in 2018, that they had a ready listing with two million members, and had a similarly-long listing 4 years later once they launched their crypto buying and selling pockets.
Key options of Robinhood embody buying and selling shares, ETFs, and cryptocurrencies; a safe crypto pockets; and a easy and intuitive person interface.
Public
Public.com is an investing platform designed to make market investing accessible to all individuals. The corporate obtained its begin in 2019 and have become the primary to permit for commission-free fractional share investing, one thing that many different platforms, together with Robinhood, have since adopted. (Fractional shares aren’t new and Public.com didn’t invent them, they only democratized them.)
Public is a licensed broker-dealer and a Monetary Business Regulatory Authority, FINRA member.
One of many issues that makes Public distinctive is the neighborhood facet of their app. Whereas there are different funding instruments which have a social facet, of which In search of Alpha is an instance, Public was the primary investing app to introduce that component.
Different key options embody entry to quite a lot of funding property, prolonged buying and selling hours, crypto buying and selling, fractional buying and selling, clear charges, and no charges for order stream on shares and ETFs.
Professional Tip:
Join with Robinhood right this moment! You possibly can refer buddies to earn as much as $1500 per yr in FREE STOCK!
As of 2024, Public.com has greater than three million customers (up from lower than a million on the finish of 2020) and an estimated worth of $1.2 billion.
We’ll get into extra element concerning the charges charged by Robinhood and Public later on this overview.
Public vs Robinhood – Options Comparability
Let’s do a deeper dive on crucial options of Public and Robinhood.
Buying and selling Expertise
The buying and selling expertise on Robinhood is supposed to be user-friendly and easy, and it delivers on each counts. Utilizing the Robinhood app or internet platform, it’s straightforward to provoke trades. In actual fact, a commerce could also be accomplished in just some minutes and with a number of clicks, even for energetic merchants trying to conduct choices buying and selling.
The cell buying and selling expertise on Public.com can also be clean and user-friendly. Trades and gross sales might take lower than a minute to finish. It’s additionally straightforward to fund your account and withdraw funds to your financial institution.
By way of buying and selling expertise, we’d say it’s a tie. Each platforms are straightforward to make use of and superb for newbies.
Professional Tip:
Join with Robinhood right this moment! You possibly can refer buddies to earn as much as $1500 per yr in FREE STOCK!
Funding Choices
Robinhood gives a number of forms of funding choices. It obtained its begin by permitting funding in simply two asset lessons: shares and exchange-traded funds (ETFs). It has since expanded to permit for funding in 20 cryptocurrencies, together with Bitcoin, Ethereum, Dogecoin, and USDC. At the moment, it’s not doable to commerce bonds or mutual funds on Robinhood, and that may pose a problem in terms of portfolio diversification.
There’s additionally an choice to arrange an IRA with Robinhood and get matching funds: 1% for normal members and three% for Robinhood Gold members.
On Public.com, customers can commerce shares, ETFs, choices, cryptocurrencies, American Depositary Receipts, fractional shares, and bonds. The inclusion of bonds is helpful as a result of it’s straightforward to diversify your portfolio. In whole, Public.com permits for buying and selling of 16 crypto cash by way of Bakkt Crypto. (It’s vital to notice that Bakkt Crypto shouldn’t be affiliated with Public.com and never a FINRA member.)
Public com doesn’t have a retirement account, however they do supply a high-yield financial savings account that pays 4% APR, in addition to a high-yield bond account that pays 6.8%.
Charges and Prices
Each Public and Robinhood trades are topic to regulatory charges, and people charges are handed on to you as a person. Right here’s a rundown of the opposite charges that will apply.
Robinhood expenses $0.50 as an index choices buying and selling charge totally free members, and $0.35 for Robinhood Gold members. ACH transfers are free, however there’s a $25 charge for outgoing wire transfers. There’s a full slate of regulatory charges, most of that are simply fractions of a penny. You’ll find the total charge desk right here.
Public expenses a flat charge of $2.99 for trades made throughout prolonged market hours and for OTC trades, not nice for extra energetic merchants. It additionally expenses for multi-asset funding plan trades, which value between $0.49 and $1.99 totally free customers. There’s a $75 charge to switch your property to a different dealer, and there may additionally be charges concerned if you wish to switch cash to your financial institution through wire. Try their full charge schedule right here.
Each platforms have a premium choice. Robinhood Gold prices $5 monthly or $50 per yr, whereas Public Premium prices $10 monthly or $96 per yr. Each plans supply customers the possibility to economize on charges and entry extra options.
Professional Tip:
Join with Robinhood right this moment! You possibly can refer buddies to earn as much as $1500 per yr in FREE STOCK!
Cellular App Usability
Robinhood’s cell app is well-reviewed and standard. The interface is designed to be really easy to make use of that newbies can bounce in and begin buying and selling instantly. It’s obtained a easy and easy-to-navigate menu. You will get assist inside the app whenever you want it, and you can too entry Robinhood’s instructional assets to be taught extra about buying and selling earlier than you bounce in.
Public’s app is likewise nicely regarded and simple to make use of. Trades may be positioned with just some faucets and it’s straightforward to entry assist and assets. Novices can begin buying and selling immediately they usually can even find out about investing on the app.
The 2 apps have practically similar star scores. Within the Google Retailer, Robinhood’s app will get 4.2 stars out of 5, and Public’s app will get 4.1 stars.
Who Ought to Use Public vs Robinhood?
When you’re somebody who needs a brief listing of investments which can be straightforward to grasp, and an app that’s beginner-friendly, then Robinhood could also be your only option. You gained’t get entry to bonds and another asset lessons, however you’re going to get entry to a wide selection of shares, ETFs, and cryptocurrencies.
We might additionally advocate Robinhood for anyone who doesn’t have an employer-sponsored retirement account. Robinhood gives 1% matching totally free members and three% for Robinhood Gold members.
Public.com gives a wider array of asset lessons for investments, together with bonds and choices. It’s nonetheless platform for newbies, however is perhaps barely extra advantageous for intermediate to superior traders.
We just like the social and neighborhood facet of Public, too. When you’re somebody who likes to swap concepts with different traders, then Public has the sting in that regard, along with each platforms having superior analysis instruments.
Since each apps are free to make use of, it could be advantageous to arrange accounts on each and see which one you favor.
Public vs Robinhood – Person Expertise Comparability
Robinhood customers have lots of good issues to say concerning the person interface and the general expertise of utilizing the app. Individuals additionally reward the IRA contribution matching, low margin charges, and money sweep. A few of the complaints embody sluggish customer support response instances for requests submitted by way of the app and the shortage of detailed funding monitoring options. Most evaluations remark that the app is finest suited to newbies.
One of many issues that stood out as we learn Public.com evaluations is that the workforce there’s continually working to enhance the app. They’re aware of evaluations. Customers have praised the app’s straightforward navigation and deposit mechanism, which permits customers to deposit funds utilizing a debit card and withdraw again to the cardboard, too. Probably the most frequent complaints is that extra options are being paywalled, resembling extra superior analysis instruments. One other is the shortage of superior charting choices.
General, we’d say the Robinhood UX is right for newbies whereas Public is barely extra complicated and gives extra choices for superior customers.
Conclusion
The underside line when evaluating Public vs Robinhood is that each apps supply a streamlined person expertise. We’d say that Robinhood is finest suited to newbie traders or those that wish to benefit from IRA matching contributions, whereas Public has a number of extra bells and whistles that will enchantment to extra skilled traders.
Neither platform is admittedly suited to in-depth funding analysis and charting, so it’s possible you’ll must improve to premium or to make use of these apps at the side of an funding analysis platform to get the perfect outcomes.
FAQ
We expect Robinhood has a slight edge over Public com when it comes to usability for newbies. When you’re somebody who doesn’t have so much (or any) funding expertise, we predict beginning with Robinhood will likely be helpful.
Sure, Public.com gives a complete of 16 cryptocurrencies by way of its partnership with Bakkt Crypto. When you’re somebody who needs to check out crypto investing, you are able to do it with Public.com
