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As someone who has had the opportunity to explore and utilize both Robinhood and Public, I wanted to share my honest review and insights on these popular investment platforms.
Having experienced each platform’s features, pros, and cons firsthand, I aim to provide you with valuable information about Robinhood vs Public to aid in your decision-making process when choosing an investment app.
Robinhood Overview
Robinhood has emerged as a prominent player in the investment and trading space, known for its user-friendly interface and commission-free trading. Founded in 2013, Robinhood quickly gained popularity by offering a seamless mobile app experience, attracting a large user base, especially among millennials (myself included in 2018).
Pros
Easy to use
Commission-free trading
Can trade options and cryptocurrencies
Fractional share feature
IRA match program
IPO access
24/7 live support available
Cons
Limited research and educational resources
Can't invest in mutual funds or fixed-income
Occasional technical issues
User-Friendly Interface
One of the standout features of Robinhood is its intuitive and user-friendly interface. The platform is designed to simplify the investment process, making it accessible to users with varying levels of experience.
With its sleek and clean design, Robinhood provides a seamless trading experience, allowing users to execute trades with just a few taps on their smartphones.
Opening an account on Robinhood is very easy and intuitive. To open an account on Robinhood, follow these steps:
- Download the Robinhood mobile app from your preferred app store (available for iOS and Android).
- Launch the app and tap on the “Sign Up” button to begin the registration process.
- Enter your email address and create a strong password for your account.
- Provide your personal information, including your full name, date of birth, and residential address.
- Complete the identity verification process by providing the necessary documentation, such as a photo of your government-issued ID.
- Once your identity is verified, you can link your bank account to fund your Robinhood account. You’ll need to provide your bank account details, such as the account number and routing number. Note: You can skip this step and fund your account later.
- Review and agree to Robinhood’s terms of service and other relevant agreements.
- Set up a security PIN or enable biometric authentication (such as fingerprint or face recognition) for added account security.
- After completing these steps, your Robinhood account will be created, and you can start exploring the platform and investing in stocks, options, ETFs, and cryptocurrencies.
Commission-Free Trading
One of the primary reasons for Robinhood’s rapid growth is its commitment to commission-free trading. They were the pioneers of commission-free trading that significantly reduced the barriers to entry for new investors, making it an attractive choice for those looking to get started with minimal costs.
Unlike traditional brokerage firms, Robinhood allows users to buy and sell stocks, options, ETFs, and cryptocurrencies without incurring any trading fees.
How Robinhood Makes Money
- Payment for Order Flow: Robinhood receives payment for routing customer orders to market makers or trading firms. These firms execute the trades on behalf of Robinhood’s customers, and in return, Robinhood receives a small payment.
- Interest on Cash Balances: When users hold cash in their Robinhood accounts, Robinhood may invest those funds and earn interest on them.
- Robinhood Gold: Robinhood offers a premium subscription service called Robinhood Gold, which provides additional features and benefits for a monthly fee. This subscription contributes to Robinhood’s revenue.
- Margin Trading: Robinhood allows users to trade on margin, which means borrowing funds to trade with leverage. Robinhood earns interest on the borrowed money.
Investment Options
Robinhood offers a wide range of investment options, including stocks, options, ETFs, and cryptocurrencies. However, they do not have the option to invest in mutual funds, index funds, treasuries, and other alternative investments like art.
Furthermore, Robinhood’s fractional share feature allows investors to buy and own a fraction of a share, making it easier to invest in high-priced stocks.
For example, if you want to buy Apple stock that costs $200 and you only have $50 to invest? No problem – you can still buy a fraction of a share for $50.
IRA Match
The IRA Match is a benefit offered only by Robinhood for their Individual Retirement Account (IRA). It provides an extra 1% match on eligible contributions made to the IRA from external accounts, IRA transfers, or old 401(k)s.
This match is not counted towards the annual contribution limit and has no cap, allowing individuals to potentially earn additional funds for their retirement savings.
Unlike employer 401(k) matches, the Robinhood IRA Match does not require having an employer plan or being employed by Robinhood. It’s a way to boost your retirement savings and maximize the benefits of investing in an IRA through Robinhood.
Do note that you’ll need to keep the contributions in your IRA for at least 5 years from the date of your deposit to keep the match.
Pros of Robinhood
- User-friendly interface, ideal for beginners
- Commission-free trading, minimizing costs
- Ability to trade options and cryptocurrencies commission-free
- Fractional share feature, enabling investment in high-priced stocks
- Offers the only IRA match program
- Grants IPO access to users
- 24/7 live support available
Cons of Robinhood
- Limited research and educational resources compared to traditional brokers
- Occasional technical issues during high market volatility especially during March 2020.
- No mutual funds or index funds are available
Public Overview
Pros
Easy to use
Commission-free trading for equities
Social investing feature
Fractional share feature
Offers a wide range of investment options
Ability to set up recurring investment plan
Cons
Limited account types available
No mutual funds, options, and other derivatives
Fees for alternatives and crypto
Limited investing features for trading
Customer service can be improved
Ease-of-use
The Public app is known for its ease of use and straightforward setup process. The platform prioritizes simplicity, making it accessible for users of all experience levels. With a user-friendly interface and intuitive design, Public ensures that investors can navigate the app effortlessly.
Setting up an account on Public is a hassle-free process. You can easily download the app from your preferred app store and follow the step-by-step instructions to create an account that took me a total of 5 minutes to get my account approved.
Once your account is set up, you’ll find that Public offers a seamless and intuitive investment experience. The app provides a clean and organized layout, making it easy to explore different investment options, research companies, and manage your portfolio.
Social Investing
One of Public’s standout features is its focus on social investing. The platform allows users to follow investment themes and other investors, view their portfolios, and engage in discussions about investment strategies and ideas.
Another notable feature offered by Public is their “town halls.” These interactive sessions provide an opportunity for investors to engage in question-and-answer sessions with CEOs of publicly traded companies, including those in which you may have holdings.
By submitting written questions, investors can actively participate in these live forums and receive responses directly from company leaders.
This social aspect provides a unique opportunity for beginners to learn from experienced investors and gain insights into their decision-making process. You can access the Feed at the bottom of the app.
Fractional Investing
Similar to Robinhood, Public also offers fractional investing, enabling users to invest in fractional shares of stocks and ETFs.
This feature allows investors with limited capital to diversify their portfolios by investing in high-priced assets that may have been out of reach otherwise.
Diverse Investment Options
Public.com offers a diverse range of investment options, making it an excellent platform for creating a well-rounded and diversified portfolio.
With Public, investors have access to a wide variety of assets, including stocks, exchange-traded funds (ETFs), cryptocurrencies, treasuries for income generation and safety, and alternative investments.
Pros of Public
- Social investing, enables users to learn from experienced investors
- Transparent platform, displaying all trades publicly
- Offers a wide range of investment options: stocks, ETFs, crypto, treasuries, and alternative investments.
- Fractional investing, making it accessible for investors with limited capital.
- Can create an investment plan to buy up to 20 assets on a recurring basis.
Cons of Public
- Limited account types available (no retirement accounts)
- Fees for alternative investments and crypto
- No support for options trading
- Some users may find the social aspect overwhelming or distracting
Robinhood vs Public: A Comprehensive Comparison
Now that we have explored the key features and highlights of both Robinhood and Public, let’s delve into a comprehensive comparison of these two popular investment platforms.
| Features | Robinhood | Public |
| User Experience | Intuitive and user-friendly interface | Social investing and community-driven experience |
| Investment Options | Stocks, options, ETFs, cryptocurrencies | Stocks, treasuries, cryptocurrencies, ETFs |
| Research and Education | Limited resources compared to traditional brokers | Limited resources but has curated articles and community-driven learning |
| Fees and Costs | Commission-free trading, revenue from payment for order flow | Commission-free trading, optional premium subscription (Public Plus) |
| Reliability and Customer Support | Occasional technical issues, 24/7 live chat and email support | Occasional technical issues, support via email and in-app messaging |
| Investing Features | Has charting capabilities and advanced order types | Limited charting features and basic order types available |
| Margin Available? | Yes | No |
| SIPC Insured? | Yes | Yes |
User Experience
Both Robinhood and Public prioritize user experience, albeit in different ways. Robinhood’s sleek and intuitive interface caters to beginners and offers a seamless trading experience.
On the other hand, Public focuses on building a social community, allowing users to interact and learn from each other.
The user experience largely depends on individual preferences, with Robinhood providing a more traditional trading experience and Public fostering a social and collaborative environment.
Investment Options
When it comes to investment options, Robinhood offers a broader range and users have access to stocks, options, ETFs, and cryptocurrencies, providing ample choices for diversifying their portfolios. Robinhood does not offer fixed-income securities like bonds or alternative investments like art.
Public, however, have a lot, which may be limiting for investors seeking a wider range of assets.
In general, Public is great for an all-in-one platform for investing and building a diversified portfolio but Robinhood is better for trading especially if you want options.
Research and Education
While both platforms aim to educate and inform users, but both fall slightly short in terms of research and educational resources compared to traditional brokerage firms.
Both apps grant you enough information to get started but you’ll have to do more homework to dive deeper into an investment.
If you want access to Morningstar research on Robinhood, you’ll need toupgrade to Robinhood Gold for $5/month.
Public Premium costs $10/month and will also grant you access to Morningstar research and also unique data on various companies.
Fees and Costs
One of the primary advantages of both Robinhood and Public is the absence of trading commissions.
However, it’s important to note that Robinhood generates revenue through other means, such as Payment for Order Flow (PFOF).
Public, on the other hand, is not compensated by third parties to route your orders. You can “tip” Public on your own accord to support their efforts of not using PFOF. Public also offers a premium subscription option called Public Plus, which provides additional benefits at a monthly cost.
Reliability and Customer Support
While both Robinhood and Public strive to offer reliable services, occasional technical issues can arise, particularly during periods of high market volatility.
It’s essential to understand that no platform is entirely immune to occasional disruptions. In terms of customer support, Robinhood provides 24/7 live chat and email support, whereas Public offers support via email and in-app messaging from 9AM-5PM EST.
Conclusion
In conclusion, both Robinhood and Public have their unique strengths and target different segments of investors.
Robinhood excels in its user-friendly interface, commission-free trading, and diverse investment options, including cryptocurrencies. Public, on the other hand, stands out with its social investing features, transparent platform, and the ability to learn from successful investors.
FAQs
How do Robinhood and Public differ in user experience?
Robinhood provides a sleek and intuitive interface focused on a seamless trading experience, while Public emphasizes building a social community where users can interact and learn from each other.
What investment options are available on Robinhood and Public?
Robinhood offers stocks, options, ETFs, and cryptocurrencies. Public offers stocks, ETFs, cryptocurrencies, treasuries, and alternative investments.
Are there any trading fees on Robinhood and Public?
Both Robinhood and Public offer commission-free trading. However, Robinhood generates revenue through other means like Payment for Order Flow (PFOF), while Public is not compensated by third parties for routing orders.
What customer support options are available on Robinhood and Public?
Robinhood provides 24/7 live chat and email support, while Public offers support via email and in-app messaging from 9 AM to 5 PM EST.
This post may contain affiliate links. We may receive compensation when you click on links to those products at no additional cost to you. Read our full disclosure here.
