IG Vs Robinhood

Category: Broker Guides | Author: Trading Brokers | Date: July 22, 2023

When it comes to online trading, investors have a plethora of options at their disposal. Two popular platforms that have gained significant attention are IG and Robinhood. Both platforms have revolutionized the way people engage in financial markets, providing seamless access to a wide range of investment opportunities. In this article, we will delve into the features, advantages, and disadvantages of IG and Robinhood, ultimately helping you make an informed decision on which platform may better suit your needs. Whether you are a seasoned investor or just starting your trading journey, understanding the similarities and differences between these platforms is crucial for optimizing your trading experience.

Overview of IG

IG

IG

IG, founded in 1974, is a well-established and reputable trading platform that has garnered a strong presence in the financial markets. With its extensive range of products and markets, IG offers traders a diverse portfolio to choose from. The platform boasts two primary trading options: the IG Trading Platform and the MetaTrader 4 (MT4) platform. The IG Trading Platform is a user-friendly web-based interface that provides traders with a customizable experience. On the other hand, the MT4 platform is a widely recognized third-party platform preferred by many experienced traders.

One of IG’s key strengths lies in its vast selection of markets, which exceeds 17,000 across various asset classes. Whether you’re interested in forex, shares, indices, commodities, or cryptocurrencies, IG has you covered. Furthermore, IG equips its users with a comprehensive suite of research tools to aid their decision-making process. These tools include news feeds, market analysis, trading signals, and more. Additionally, IG invests in educating its users through webinars, courses, and detailed trading guides. This commitment to education sets IG apart by empowering traders with the knowledge needed to navigate the dynamic world of online trading. Lastly, IG provides robust customer support through multiple channels, including phone, email, and live chat.

Pros of IG

  • Wide range of markets and products
  • Access to the popular MetaTrader 4 platform
  • Extensive research tools and educational resources
  • Multiple customer support channels

Cons of IG

  • Limited customer support options compared to some competitors
  • IG’s trading platform can be difficult to navigate for some users.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview of Robinhood

Robinhood

Robinhood

Founded in 2013, Robinhood has gained significant traction in the online trading industry, particularly among younger and tech-savvy investors. The platform stands out for its mobile app-based interface, which offers a seamless and intuitive trading experience. With a focus on accessibility, Robinhood provides users with the ability to trade stocks, options, ETFs, and cryptocurrencies from the convenience of their smartphones.

Robinhood’s simplicity and user-friendly design make it an attractive choice for beginners and those who prefer a streamlined trading process. The platform allows users to easily monitor their investments, execute trades, and access real-time market data. While Robinhood offers a more limited selection of markets compared to IG, it still covers a range of popular asset classes.

Although Robinhood’s research tools may not be as extensive as some other platforms, it does provide users with news feeds and market analysis to stay informed about market trends. The platform also offers educational resources in the form of articles and videos to help users build their trading knowledge. When it comes to customer support, Robinhood provides assistance through phone and email.

Pros of Robinhood

  • Mobile app-based platform for easy access and trading on-the-go
  • Simplicity and user-friendly interface
  • Access to stocks, options, ETFs, and cryptocurrencies
  • News feeds and market analysis for staying informed
  • Educational resources to support trading knowledge

Cons of Robinhood

  • Limited market selection compared to some competitors
  • Reliance on email and phone support only
Robinhood Logo

Robinhood gives USA clients access to modern investing platforms for commission free stock trading. They have some quality research tools and educational content along with excellent customer support.

All investments involve risks, including the possible loss of capital.

Comparison Between IG and Robinhood

IG and Robinhood are two popular trading platforms that cater to different types of traders. Let’s compare them based on various considerations to help you make a more informed decision.

Regulation

IG is regulated by several financial authorities around the world, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) in Australia, the Monetary Authority of Singapore (MAS) in Singapore, and the Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) in the US. IG Group is also listed on the London Stock Exchange. Robinhood, on the other hand, is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) in the US. Robinhood is not listed on any stock exchange.

Trading platforms

IG offers a range of trading platforms including web-based, mobile, and advanced platforms such as MetaTrader 4 (MT4) and ProRealTime. IG’s web-based platform is user-friendly and easy to navigate. On the other hand, Robinhood offers a mobile app for iOS and Android devices. The app is user-friendly and easy to navigate. However, both platforms strive to provide a similar level of quality in terms of research and education materials.

Pricing and fees

IG charges no commission for trading forex, CFDs, stocks, ETFs, and cryptocurrencies. However, IG does charge spreads, which are the difference between the bid and ask prices of an asset. IG also charges overnight funding fees for holding positions overnight, as well as inactivity fees for accounts that have been dormant for two years or more. On the hand, Robinhood also charges no commission for trading stocks, ETFs, options, and cryptocurrencies. However, Robinhood does not offer forex or CFD trading. Robinhood also charges spreads, as well as regulatory fees for selling stocks and options. Robinhood does not charge overnight funding fees or inactivity fees.

Broker Type

IG operates as a market maker broker, taking the opposite side of its clients’ trades and potentially benefiting from their losses. On the other hand, Robinhood is also a market maker broker that acts as a counterparty to its clients’ trades but routes them to third-party market makers who pay Robinhood for order flow.

Leverage

IG offers leverage up to 1:30 for retail clients and up to 1:400 for professional clients. On the other hand, Robinhood offers leverage through its margin investing feature. This feature allows you to borrow money from Robinhood and leverage your holdings to purchase securities, giving you access to additional buying power based on the value of certain securities in your brokerage account.

Asset selection

IG offers access to over 17,000 financial instruments, including stocks, ETFs, forex, CFDs, options, futures, and crypto. They also provide fractional shares for US and UK stocks. On the other hand, Robinhood offers access to over 5,000 financial instruments, including stocks, ETFs, options, and crypto. They also offer fractional shares for US stocks and ETFs with a minimum investment of $1. However, neither IG nor Robinhood offers funds or bonds as a product. Overall, IG has a more extensive asset selection compared to Robinhood, catering to a broader range of trading preferences.

Social Trading

IG offers social trading which enables traders to replicate the positions of others and interact with their peers. IG’s social trading platform is called IG Community. On the other hand, Robinhood does not offer social trading.

Minimum Deposit

IG requires a minimum deposit of $250. On the other hand, Robinhood has no minimum deposit for any method, but a $2,000 minimum balance is needed for margin trading via Robinhood Gold. Both brokers offer fast and convenient deposit processes, but Robinhood generally has a lower minimum deposit requirement compared to IG.

Withdrawal and Deposit methods

IG offers a range of deposit and withdrawal methods including bank transfers, credit/debit cards, PayPal, Skrill, Neteller, and BPay. On the other hand, Robinhood offers deposit methods such as bank transfers, wire transfers, and ACH transfers. Withdrawals can be made via bank transfers. It is important for users to consider their preferred payment methods, transaction fees, and processing times when evaluating the withdrawal and deposit options offered by IG and Robinhood.

Which is better for you?

IG might be a better option for you if you value a wide range of markets and products, extensive research tools, and a commitment to education. With over 17,000 markets available across various asset classes, IG provides ample opportunities for diversification and investment. The platform’s research tools, including news feeds, market analysis, and third-party research, equip you with valuable insights to make informed trading decisions. Additionally, IG’s emphasis on education through webinars, courses, and trading guides ensures that you have access to the resources necessary to enhance your trading knowledge and skills. If you prioritize market variety, in-depth research capabilities, and educational support, IG could be the optimal choice for you.

On the other hand, Robinhood might be a better option for you if you prefer a simple and user-friendly trading experience, especially through mobile devices. The platform’s mobile app-based interface allows for seamless trading on-the-go, catering to those who value convenience and accessibility. If you primarily focus on popular asset classes such as stocks, options, ETFs, and cryptocurrencies, Robinhood provides access to these markets. While the research tools may be more basic compared to IG, Robinhood still offers essential news feeds and market analysis to keep you informed. If you seek a streamlined trading process, a user-friendly interface, and a focus on core markets, Robinhood could be the ideal choice for you.

Conclusion

In conclusion, both IG and Robinhood offer unique features and advantages in the online trading space. While IG provides a vast selection of markets, advanced research tools, and extensive educational resources, Robinhood excels in simplicity, accessibility, and a user-friendly mobile trading experience. Ultimately, the better option for you depends on your specific requirements, trading goals, and preferences. Consider factors such as market access, research capabilities, educational support, and user experience to make an informed decision and choose the platform that best aligns with your individual needs as a trader.


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