Over the last few years, there’s been a rise of the “mobile trader” as more investing apps become commission-free. And for anyone wanting a beginner-friendly trading experience, investing apps are the perfect tool.
Our Public vs. Robinhood comparison is highlighting these differences to help you decide which trading platform is right for you.
Public is an investing app that launched in 2017. It’s known for its beginner-friendly interface and for the social elements it adds to investing.
With Public, you can follow profiles of your friends and top investors on the app, helping you learn from other people’s trades. The company also runs events like Public Town Halls where founders and executives from various companies answer questions from users.
Like its competitor, Public lets you trade stocks and ETFs without paying commissions. And, unlike Robinhood, Public doesn’t rely on payment for order flow (PFOF) to make money. Instead, it has an optional tipping feature, and this is one of several differences between the two brokers.
Founded in 2013, Robinhood is another popular investment app that has boomed in popularity in recent years as more retail investors have turned to mobile trading. It’s best known for its commission-free options trading and low margin rates. But like Public, Robinhood also supports commission-free stock and ETF trading.
Ease-of-use is really the name of the game at Robinhood, and this is largely why the app became so popular. Anyone can open an account and begin investing without any experience. However, the company is starting to cater to more experienced traders by rolling out features like advanced charts and its Robinhood Gold subscription.
Like many other online brokers, both Robinhood and Public offer commission-free stock and ETF trades. However, Robinhood also offers commission-free options trading which is one of its main selling points.
In terms of crypto, Public charges a 1-2% spread fee since orders are routed through Apex Crypto. Robinhood doesn’t disclose its crypto spread fees and somewhat misleadingly says it’s “fee-free.” While this is technically true, trading crypto on Robinhood is fairly similar to Public.
Both brokers can also charge miscellaneous fees, like wire transfers or returned check fees. One difference is that Public charges an inactivity fee of $5 every six months for accounts with less than $20 and no activity for the last 90 days. In contrast, Robinhood doesn’t charge inactivity fees. But overall, both brokers have similar trading and account fees.
Both investment apps are very similar in terms of the assets you can invest in. For starters, Public and Robinhood both offer commission-free stock and ETF trading. Neither broker supports mutual funds, bonds, or CDs either.
However, one of the largest differences between Robinhood and Public is that Robinhood offers commission-free options trading. You can also trade on margin at a fairly low rate. This makes Robinhood much more versatile than Public, although you shouldn’t trade options on margin without understanding the risks and with money you can’t afford to lose.
Both Robinhood and Public offer individual taxable accounts and don’t support tax-advantaged retirement accounts like a Traditional or Roth IRA. This is one downside for both investing apps, although Robinhood has plans to support retirement accounts in the future.
For now, if you want to invest in a retirement account, you’re better off with a full-service broker like Ally Invest of TD Ameritrade.
Recently, both Public and Robinhood have expanded into cryptocurrency investing. This makes them similar to platforms like eToro and FTX that both offer securities investing and crypto, while some more old-school brokers are still playing catch up.
Currently, Public supports 29 cryptos which is almost double the amount Robinhood supports. Both apps lets you invest in major cryptos like Bitcoin, Ethereum, and some popular altcoins. But Public is the clear winner in terms of selection.
As mentioned, Robinhood doesn’t disclose the spread fees for crypto while Public’s partner Apex Crypto charges about 1-2% per trade. It’s difficult to compare both brokers head-to-head on crypto, but we don’t think either option is great for digital currencies anyways.
You get way more selection and features by sticking with a crypto exchange. For example, crypto exchanges like Crypto.com support 200+ cryptos, have staking and lending, and offer more advanced trading tools. You can use apps like Public or Robinhood for simplicity, but know that you’re missing out on more trading pairs and potentially lower fees.
Currently, both Public and Robinhood offer email support. Public also offers live chat support, Monday through Friday, from 9am to 5pm ET. In contrast, Robinhood offers 24/7 phone customer support, making its customer service department far more available than Public.
You still have to log in to Robinhood’s app and go through a few steps to get in touch with customer support. But the fact support is available 24/7 is one advantage over Public.
The lack of PFOF is really the main highlight here, and it’s what sets Public apart from many investing apps. The fact you can get a helping hand with various stock themes or studying other people’s profiles are also unique selling points.
Advanced charts are one new, massive improvement for Robinhood. And it’s one of the best options trading platforms due to its lack of fees.
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If you plan on trading options or on margin, Robinhood is the obvious winner over Public. And since it’s rolling out advanced charting, the app is also becoming more useful for experienced investors who want to conduct a bit of technical analysis. The fact Robinhood also has a cash card might be a unique selling point over Public for some investors.
In contrast, Public is better than Robinhood if you want to follow your friends and other investors for a social investing experience. Its themes are also great for beginners because they can point you in the right direction if there’s a certain sector you want to invest in. And one of Public’s main advantages over Robinhood is that it has a cleaner history; the lack of PFOF and regulatory scrutiny being prime examples.
Personally, I’d pick Public over Robinhood just on the grounds that Robinhood halted trading during GameStop’s rally, which isn’t cool. But then again, I invest with TD and prefer full-service brokers over investing apps, but that’s just me.
Ultimately, you need to pick the investing app that has the asset classes you’re looking for and the tools you need. Hopefully, our Robinhood vs. Public breakdown makes the decision a little easier.
