In the world of online trading and investing, two platforms that have garnered significant attention are Public and Robinhood. Both platforms cater to retail investors, offering commission-free trades and the ability to buy and sell stocks, ETFs, and other financial instruments. However, the features, user experience, fees, and business models of these two brokers differ in several key aspects. In this article, we will provide an in-depth comparison of Public and Robinhood across a range of criteria, examining their strengths, weaknesses, and suitability for different types of investors.
Introduction
When it comes to choosing a brokerage platform for investing, individuals often seek options that offer ease of use, low fees, and reliable features. In recent years, commission-free trading has revolutionized the brokerage landscape, with platforms like Robinhood leading the charge in attracting new retail investors. Public, a newer entrant into the brokerage world, also offers commission-free trading, but with a slightly different approach to investing and social interaction.
While both Public and Robinhood provide investors with the opportunity to trade stocks, ETFs, and cryptocurrencies without paying commissions, they cater to slightly different audiences and offer different experiences. In this article, we will compare the two platforms based on several key factors: trading features, fees, user experience, educational resources, security, and customer support.
Trading Features
Robinhood’s Trading Features
Robinhood’s trading features are designed to be simple, fast, and efficient, catering to both beginner and intermediate investors. Robinhood was one of the first platforms to offer commission-free trading, which helped it attract millions of users. Some key trading features on Robinhood include:
- Commission-Free Trading: Robinhood pioneered the commission-free trading model, and it continues to offer this feature for a variety of financial products, including stocks, options, and ETFs. This model eliminates the traditional per-trade fees that were common with other brokers.
- Options Trading: Robinhood offers a robust options trading platform with no commissions, which is appealing to more advanced traders. It provides tools like an options chain, Greek indicators, and the ability to buy and sell options contracts on a variety of underlying assets.
- Fractional Shares: Robinhood allows users to purchase fractional shares, which is particularly useful for investors who want to buy expensive stocks like Amazon or Tesla but don’t have enough capital to buy a full share.
- Cryptocurrency Trading: Robinhood also provides users with the ability to trade a wide selection of cryptocurrencies, such as Bitcoin, Ethereum, and Dogecoin, with no commissions.
Conclusion on Robinhood’s Trading Features: Robinhood has a broad range of features that cater to a wide variety of users, from beginners to more advanced traders. Its focus on simplicity and ease of use, combined with commission-free trading, makes it an attractive option for those looking to start investing. However, the platform may not offer as many sophisticated tools for advanced traders when compared to some other brokers.
Public’s Trading Features
Public is a newer platform that differentiates itself by combining social investing features with traditional trading tools. The platform allows users to trade commission-free stocks, ETFs, and cryptocurrencies, but with an emphasis on community interaction. Some key trading features of Public include:
- Social Investing: One of the most notable features of Public is its emphasis on social investing. Users can follow other investors, view their portfolios, and see which stocks they are buying and selling. Public integrates a social feed, where users can share news, insights, and opinions, much like social media platforms.
- Commission-Free Trading: Like Robinhood, Public offers commission-free trading on stocks, ETFs, and cryptocurrencies, which is a major draw for many users. However, Public’s business model is based on tips and optional donations from users rather than the spread or margin fees, which is how Robinhood generates revenue.
- Fractional Shares: Public also offers fractional shares, allowing users to invest in high-priced stocks with smaller amounts of money. This feature helps democratize investing by giving users the ability to buy a portion of shares in companies like Amazon or Google.
- Cryptocurrency Trading: Public allows users to trade several cryptocurrencies, including Bitcoin, Ethereum, and others, but with a more limited selection than Robinhood. This is because Public is still expanding its cryptocurrency offerings.
Conclusion on Public’s Trading Features: Public offers a unique blend of traditional trading features with social investing, which sets it apart from other brokerage platforms. The ability to follow other investors and engage with the community provides a social and educational dimension to the investing experience. While Public offers the same commission-free trading model and fractional shares as Robinhood, its cryptocurrency offerings are more limited. This makes Public a better choice for those who value social interaction and community-driven insights.
Fees and Pricing
Robinhood’s Fee Structure
Robinhood’s fee structure is one of its main selling points, as it has eliminated traditional commission fees for trades on stocks, options, and ETFs. However, there are other fees associated with the platform:
- Margin Fees: Robinhood offers a margin trading service through its Robinhood Gold subscription, which costs $5 per month. Robinhood Gold users can access additional features such as professional research reports and the ability to trade on margin.
- Options Trading Fees: While Robinhood does not charge commission fees for options trading, users may incur fees for exercise and assignment of options contracts, which are standard fees charged by the Options Clearing Corporation.
- Cryptocurrency Spread: Robinhood makes money on cryptocurrency trades through a spread, which is the difference between the buy and sell prices. While this spread is typically small, it can add up over time.
Conclusion on Robinhood’s Fee Structure: Robinhood’s fee structure is very competitive, with no commissions on stock, ETF, or options trades. The platform’s margin fees are relatively low at $5 per month for Robinhood Gold, but users should be aware of the spread on cryptocurrency transactions. Overall, Robinhood remains an excellent option for those looking to avoid traditional trading commissions.
Public’s Fee Structure
Public also offers commission-free trading, but its revenue model differs slightly from Robinhood’s. Public operates with no account minimums or fees for trades, and it is fully transparent about its income sources. Some notable aspects of Public’s fee structure include:
- No Commissions: Just like Robinhood, Public charges no commissions on stocks, ETFs, or cryptocurrency trades. There are no account minimums or inactivity fees, making it easy for new investors to get started.
- No Margin Trading: Unlike Robinhood, Public does not offer margin trading at this time. This means that users cannot borrow money to trade with leverage, which could be a disadvantage for more advanced traders.
- Tips and Donations: Public operates on a “tip-based” model, where users can optionally tip the platform for its services. This is a unique feature compared to Robinhood’s model, where revenue is generated primarily through payment for order flow.
Conclusion on Public’s Fee Structure: Public’s fee structure is straightforward and transparent, with no commissions, account minimums, or margin trading. The platform’s optional tipping system allows users to support the platform in a way that doesn’t directly affect their trading costs. While this model is attractive to those who prefer a more ethical business approach, it may not appeal to users looking for more advanced trading tools and margin options.
User Experience
Robinhood’s User Interface
Robinhood’s user interface is designed to be simple, clean, and easy to navigate. The app is available on both mobile and desktop platforms, with a focus on a streamlined, minimalistic design. Some key features of Robinhood’s user interface include:
- Mobile and Desktop Platforms: Robinhood offers both mobile and desktop platforms that sync seamlessly, allowing users to trade on the go. The app is intuitive and user-friendly, making it a good choice for beginners.
- Dashboard: The main dashboard in Robinhood is where users can view their portfolio, track market movements, and place trades. The layout is simple, but some users may find it lacking in advanced charting tools or customization options.
- Research and Tools: Robinhood offers basic news and analysis but lacks in-depth research and charting tools. Advanced traders may find the platform insufficient for technical analysis.
Conclusion on Robinhood’s User Interface: Robinhood’s simple, intuitive interface makes it accessible to beginners and casual investors. However, more experienced traders may find the platform lacking in advanced research tools and customization options. It is an excellent platform for those looking for a straightforward, easy-to-use app.
Public’s User Interface
Public’s user interface is also designed with simplicity and ease of use in mind, but it takes it a step further by incorporating social and community-driven features. Key aspects of Public’s user interface include:
- Social Feed: One of the standout features of Public’s interface is the social feed, where users can interact with other investors, share tips, and discuss market trends. This adds a layer of social interaction to the trading experience, which may appeal to younger investors or those looking for a more engaging experience.
- Mobile and Desktop Platforms: Public offers both mobile and desktop apps, which are well-designed and easy to navigate. The interface is clean and modern, and it integrates social features with traditional investing tools.
- Research Tools: Public provides users with access to news, stock information, and educational resources, but it does not offer the same level of advanced charting tools or research as some other platforms.
Conclusion on Public’s User Interface: Public’s user interface excels in integrating social features into the investing experience, making it an appealing choice for those who want to engage with a community of investors. The platform is easy to use and navigate but lacks some of the advanced research tools that more experienced traders may need. Overall, Public is an excellent choice for beginners or those who enjoy social investing.
Educational Resources
Robinhood’s Educational Resources
While Robinhood’s platform is designed for simplicity, it offers a range of educational resources to help new investors get started. Some notable features include:
- Learning Center: Robinhood has a built-in learning center that covers the basics of investing, options trading, and cryptocurrencies. The articles are written in an easy-to-understand language and cover a wide range of topics.
- Webinars and Podcasts: Robinhood also offers webinars and podcasts to help users stay informed about market trends and improve their trading skills. These resources are valuable for users looking to deepen their knowledge of investing.
- Basic Insights: Robinhood provides basic news and market insights, but it lacks in-depth research reports or professional-grade tools.
Conclusion on Robinhood’s Educational Resources: Robinhood offers solid educational resources for beginners, but more experienced traders may find the platform lacking in advanced materials. Its learning center, webinars, and podcasts are valuable tools for those just starting out.
Public’s Educational Resources
Public also offers a range of educational resources designed to help users learn about investing. Some key aspects of Public’s educational resources include:
- Community-Driven Learning: Public’s emphasis on social investing means that users can learn from the experiences and insights of others in the community. This peer-to-peer learning can be a valuable resource for beginners.
- Public’s Blog: Public maintains an informative blog that covers a range of investment topics, from stock picks to market trends. The content is designed to be accessible and engaging for a wide audience.
- Basic Tools and Resources: Public offers access to basic stock information, news, and research, but it does not provide advanced tools or detailed reports.
Conclusion on Public’s Educational Resources: Public offers a unique learning experience through its community-driven approach, which can be helpful for beginners. However, it lacks some of the more in-depth educational tools found on other platforms, making it a better option for those who prefer learning through social interaction rather than formal resources.
Security and Customer Support
Robinhood’s Security and Customer Support
Robinhood takes security seriously and provides several features to protect user accounts, including:
- Two-Factor Authentication (2FA): Robinhood offers two-factor authentication to add an extra layer of security to user accounts.
- SIPC Insurance: Robinhood is a member of the Securities Investor Protection Corporation (SIPC), which protects up to $500,000 of a customer’s account balance in the event of a brokerage failure.
- Customer Support: Robinhood’s customer support has been a point of criticism, especially during periods of high market volatility. While Robinhood provides email support and an in-app chat feature, some users have reported long wait times for assistance.
Conclusion on Robinhood’s Security and Customer Support: Robinhood offers solid security features, including two-factor authentication and SIPC insurance. However, its customer support has been a point of contention, with some users reporting slow response times. This is an area that Robinhood could improve upon to enhance the overall user experience.
Public’s Security and Customer Support
Public places a strong emphasis on security and customer support, with several measures in place to protect users:
- Two-Factor Authentication (2FA): Public also offers two-factor authentication to enhance account security.
- SIPC Insurance: Like Robinhood, Public is a member of the SIPC, providing the same level of protection for users’ funds.
- Customer Support: Public’s customer support is generally regarded as responsive, with options for live chat and email support. The platform also provides a comprehensive FAQ section to help users troubleshoot common issues.
Conclusion on Public’s Security and Customer Support: Public offers strong security measures, including two-factor authentication and SIPC insurance. Its customer support is responsive and reliable, with multiple ways to get assistance. Overall, Public has an edge in this category due to its higher level of customer support and responsiveness.
Final Thoughts
Both Robinhood and Public offer commission-free trading, making them popular choices for retail investors. Robinhood excels in providing a simple, easy-to-use platform with a wide range of trading features, including options and cryptocurrency trading. However, its customer support and lack of advanced research tools may deter some users.
Public, on the other hand, provides a unique social investing experience, with a focus on community engagement and transparency. While it lacks some of the more advanced features found on other platforms, such as margin trading, its emphasis on social interaction and user support makes it a strong contender for beginners and social investors.
Ultimately, the choice between Robinhood and Public comes down to personal preference. Investors who value simplicity and a wide range of trading options may prefer Robinhood, while those who enjoy a more social and community-driven approach to investing may find Public to be a better fit.
