You’re prepared to start your funding journey, however it could really feel overwhelming to decide on the appropriate platform with so many choices on the market. We get it—and we’ve bought you lined.
Robinhood and Public.com are two of the most important names within the sport. How do you resolve which one is best for you? We at all times advocate studying about funding platforms earlier than you employ them.
On this Public vs Robinhood overview, we’ll reveal what makes these two platforms related, in addition to what makes every distinctive. We’ve included details about options, the consumer expertise, charges and prices, and our tackle which kind of investor every platform is greatest suited to.
By the point you’ve completed studying, you’ll have a deal with on how Public and Robinhood examine and which platform it’s best to use to start out investing.
Overview of Robinhood and Public.com
Let’s begin with an outline of every platform to present you a strong base of understanding of what every has to supply.
Robinhood
Robinhood is a mobile-first digital buying and selling platform that bought 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, simple, 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 development was achieved by buying firms corresponding to 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 belongings in 2018, they’d 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 consumer interface.
Public
Public.com is an investing platform designed to make market investing accessible to all folks. The corporate bought 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 group 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 factor.
Different key options embody entry to quite a lot of funding belongings, prolonged buying and selling hours, crypto buying and selling, fractional buying and selling, clear charges, and no charges for order move on shares and ETFs.
Professional Tip:
Join with Robinhood at this time! You’ll be able to refer mates to earn as much as $1500 per 12 months 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 in regards to the charges charged by Robinhood and Public later on this overview.
Public vs Robinhood – Options Comparability
Let’s do a deeper dive on an important 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 simple to provoke trades. In truth, a commerce could also be accomplished in only a few minutes and with just a few 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 could take lower than a minute to finish. It’s additionally simple 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 simple to make use of and ultimate for newbies.
Professional Tip:
Join with Robinhood at this time! You’ll be able to refer mates to earn as much as $1500 per 12 months in FREE STOCK!
Funding Choices
Robinhood provides a number of kinds of funding choices. It bought its begin by permitting funding in simply two asset courses: 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 attainable to commerce bonds or mutual funds on Robinhood, and that may pose a problem with regards to 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 simple to diversify your portfolio. In whole, Public.com permits for buying and selling of 16 crypto cash by means of Bakkt Crypto. (It’s essential to notice that Bakkt Crypto just isn’t affiliated with Public.com and never a FINRA member.)
Public com doesn’t have a retirement account, however they do provide 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 consumer. Right here’s a rundown of the opposite charges which will apply.
Robinhood prices $0.50 as an index choices buying and selling price free of charge members, and $0.35 for Robinhood Gold members. ACH transfers are free, however there’s a $25 price for outgoing wire transfers. There’s a full slate of regulatory charges, most of that are simply fractions of a penny. You could find the total price desk right here.
Public prices a flat price of $2.99 for trades made throughout prolonged market hours and for OTC trades, not nice for extra energetic merchants. It additionally prices for multi-asset funding plan trades, which value between $0.49 and $1.99 free of charge customers. There’s a $75 price to switch your belongings to a different dealer, and there may be charges concerned if you wish to switch cash to your financial institution by way of wire. Take a look at their full price schedule right here.
Each platforms have a premium possibility. Robinhood Gold prices $5 per 30 days or $50 per 12 months, whereas Public Premium prices $10 per 30 days or $96 per 12 months. Each plans provide customers the prospect to save cash on charges and entry further options.
Professional Tip:
Join with Robinhood at this time! You’ll be able to refer mates to earn as much as $1500 per 12 months in FREE STOCK!
Cellular App Usability
Robinhood’s cell app is well-reviewed and in style. 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 bought a easy and easy-to-navigate menu. You will get assist inside the app whenever you want it, and you may also entry Robinhood’s instructional sources to study extra about buying and selling earlier than you bounce in.
Public’s app is likewise nicely regarded and simple to make use of. Trades might be positioned with only a few faucets and it’s simple to entry assist and sources. Rookies can begin buying and selling straight away and so they can even study investing on the app.
The 2 apps have almost similar star rankings. 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?
In case you’re somebody who needs a brief listing of investments which are simple to know, 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 courses, 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 provides 1% matching free of charge members and three% for Robinhood Gold members.
Public.com provides a wider array of asset courses for investments, together with bonds and choices. It’s nonetheless a great platform for newbies, however is likely to be barely extra advantageous for intermediate to superior traders.
We just like the social and group facet of Public, too. In case 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 a number of good issues to say in regards to the consumer 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 gradual customer support response occasions for requests submitted by means of the app and the dearth of detailed funding monitoring options. Most opinions remark that the app is greatest suited to newbies.
One of many issues that stood out as we learn Public.com opinions is that the crew there may be continuously working to enhance the app. They’re attentive to opinions. Customers have praised the app’s simple navigation and deposit mechanism, which permits customers to deposit funds utilizing a debit card and withdraw again to the cardboard, too. Some of the widespread complaints is that extra options are being paywalled, corresponding to extra superior analysis instruments. One other is the dearth of superior charting choices.
Total, we’d say the Robinhood UX is good for newbies whereas Public is barely extra complicated and provides extra choices for superior customers.
Conclusion
The underside line when evaluating Public vs Robinhood is that each apps provide a streamlined consumer expertise. We’d say that Robinhood is greatest suited to newbie traders or those that need to benefit from IRA matching contributions, whereas Public has just a few extra bells and whistles which will enchantment to extra skilled traders.
Neither platform is absolutely suited to in-depth funding analysis and charting, so you could have to 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 predict Robinhood has a slight edge over Public com when it comes to usability for newbies. In case you’re somebody who doesn’t have so much (or any) funding expertise, we expect beginning with Robinhood shall be helpful.
Sure, Public.com provides a complete of 16 cryptocurrencies by means of its partnership with Bakkt Crypto. In case you’re somebody who needs to check out crypto investing, you are able to do it with Public.com
