Robinhood Vs Binance: Which Is Better for You

Published: January 9, 2024 | Last Updated: December 24, 2023

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

Robinhood and Binance offer their users a great experience. But sometimes it can be confusing to make up your mind about which of the two it makes most sense to use. I have extensively written about both platforms on ElementalCrypto. In this review, I will help you decide which is better for you Binance or Robinhood.

Quick Answer

Binance is the largest crypto exchange. You can trade more than 500 cryptocurrencies but it’s only for trading crypto and it does not accept US dollar deposits or withdrawals. Also, it’s being sued by the SEC in the US and its CEO is about to go to jail for money laundering. 

Robinhood is an online brokerage for trading stocks, exchange-traded funds, and a few cryptocurrencies with an easy-to-use interface. The benefit of using Robinhood is that you can manage your investments across both traditional and digital assets from one place. The drawback is that it offers less than 20 cryptocurrency coins to choose from. 

Bottom line: If you are looking to dabble in both crypto and stocks and want a simple interface start with Robinhood. However, if you are solely interested in trading crypto then you are better off using Binance. The UX takes a little getting used to but it’s not something to be intimidated by.

Robinhood vs Binance at a glance

Robinhood vs Binance

Binance Kraken
Number of coins ✔️
Security ✔️
Margin trading ✔️
Fees ✔️
Compliance ❌❌
Interface ✔️
Liquidity ✔️
Prepaid card ✔️
Staking ✔️
Languages ✔️
Deposit methods ✔️

Robinhood vs Binance: What sets them apart

1. Breath of Financial Products

✔️ Robinhood | ❌ Binance

Robinhood wins this round. 

 If you are searching for a platform that offers a full range of financial products such as stocks, ETFs and crypto then Robin Hood has got you covered. Robin Hood includes commission-free trading on all of the above plus you can also trade options.  Binance, on the other hand, only allows you to invest in crypto. 

2. Number of cryptocurrencies

❌ Robinhood | ✔️ Binance

The Binance exchange has a very wide range of cryptocurrencies with more than 500 crypto assets to choose from. In contrast, the Robinhood platform only offers the most popular coins:

*not available in New York

** not available in New York and Texas

See Is Robinhood Bad for Crypto for more.

3. Fee structure

✔️ Robinhood | ✔️ Binance

It’s an even steven when it comes to how much it will cost to use them. Both platform charge low fees. 

Robinhood doesn’t charge any commissions. Instead it makes money by providing order flow to market makers. Critics argue Robinhood will offer you a worse price.

On the other hand Binance charges some of the lowest fees in the industry charging 0.1% for trades under $1million for both market makers and market takers. A market maker is someone who places a limit order whereas takers are those who place market orders i.e. they accept or take whatever the prevailing price on the market is.

Binance offers further discounts for VIP traders plus you also get a 25% discount if you use Binance Coin (BNB).

4. Wallets

❌ Robinhood | ✔️ Binance

Binance wins this round

Both Binance and Robinhood have crypto wallets. 

However, the Robinhood wallet is only available as an app for iOS users while the Android is expected in the near future. You can join the waiting list to be notified.

Robinhood’s crypto wallet is self custodial which means that you own the private keys to your wallet. Installing the Robinhood wallet means you will be able to send your crypto to other wallets or exchanges. You don’t need the Robinhood wallet to start trading crypto on Robinhood but you do need it if you want to take custody of your funds.

Binance on the other hand has its own wallet called Trust wallet. This too is a self-custody software wallet. You don’t need to have a Binance account to use Trust Wallet. More importantly you don’t need Trust wallet in order to be able to send your crypto somewhere else if you are using Binance. By default your crypto funds on Binance already live on an address. The only difference is that you don’t have the private keys to them.

In any case If you plan on holding a large amount of crypto you shuold consuder looking into cold storage solutions such as hardware wallets. 

If all of this is going over your head I suggest you read up on what is a crypto address.

5. Jurisdictions

❌ Robinhood | ✔️ Binance

Binance is available worldwide though US users will need to visit Binance US which is a separate legal entity. The platforms is offered in more than 20 languages.

In contrast, Robinhood is only available in the United States

6. Staking

❌ Robinhood | ✔️ Binance

A key benefit of holding crypto is that you can earn a return on it by participating in the validation of proof of stake blockchains. You can do this on your own or you can let Binance do it for you. By delegating your crypto to blockchain validators you can earn anywhere between 2-20% in annual yield. The interest rate and lock period vary from one cryptocurrency to another. Binance facilitates the process on your behalf in return for a commission whereas with Robinhood you don’t have that option.

You can find out more about staking using the following resources

7. Deposit methods

✔️ Robinhood | ❌ Binance

You can use credit cards and bank account transfers with both trading platforms to buy crypto with fiat money.

Robinhood deposits and withdrawals

Robinhood accepts ACH transfers which take 2-5 business days and debit card transfers which are credited within 30 minutes to your account. It also offers instant deposits up to $1,000 which means they credit your account with $1,000 while they wait for the transfer to come through. There are no fees associated with deposits.

For withdrawals, you have the option to do an instant bank or debit card withdrawal which costs 1.5% compared to a standard bank transfer which is free. You can find their fee schedule here.

Binance deposits and withdrawals

Depositing and withdrawing on Binance costs €1 for SEPA transfers. Using a bank card to deposit will cost you 2% but you can’t withdraw to your debit card like you can with Robinhood.

A major drawback for US users however is that Binance US does not accept US dollar deposits or withdrawals. This is because banking partners are reluctant to do business with Binance.us due to scrutiny by the SEC.

Which bring me to my next point.

8. Regulatory scrutiny

❌ Robinhood | ❌❌ Binance

Binance is currently being sued by the Securities Exchange Commission (SEC) in the US and its CEO, Changpeng Zhao CZ has pleaded guilty to money laundering charges and already Binance has paid a $4.3Bn fine.

Having said that the SEC has also issued a subpoena against Robinhood for offering crypto as it has against many other crypto exchanges and platforms.

9. Ease of use

✔️ Robinhood | ❌ Binance

Robinhood is much easier for new investors to navigate. The user-friendly interface is popular with younger people and you can easily engage in cryptocurrency trading at the press of a few buttons.

Binance on the other hand has two versions.  A lite version and Binance Pro. The lite version is easier to use but the fees are higher.

Don’t be intimidated by the pro version though. While it takes some getting used to it’s not that hard either. 

10. Security

❌ Robinhood |✔️ Binance

Neither of the platforms’ crypto assets are insured by the Federal Deposit Insurance Corporation. Robinhood securities and cash are both FDIC and SIPC insured for up to $250,000 but the Robinhood’s crypto platform is not. 

Binance operates a Safe Asset Fund (SAFU) for users whose purpose it is to compensate customers in case the exchange is hacked. This gives it a slight edge against Robinhood who doesn’t offer a similar feature.

Both platforms have been hacked in the past in Robinhood’s case it was only emails that were stolen.

Similarities

  • Both platforms have mobile apps for both Android and iOS. 
  • You can order a prepaid card on each of the platforms which you can use to spend assets from your account.  
  • ​I found the customer service to be equally good on both platforms
  • You can place the same order types: market orders, limit orders and stop loss orders.

Binance vs Binance.us

Binance is the largest crypto exchange by trading volume. If you are based in the US you will use Binance.us while everyone else in the world uses Binance.com. While these two companies are branded the same they are separate legal entities. Binance US complies with US regulation while Binance.com offers a wider variety of product features and cryptocurrencies.

FAQs

Is Robinhood a good place for crypto?

Robinhood is good for beginners because it is easy to use and you can manage both crypto and stocks/ETFs from one place. However, it only offers 15 cryptocurrencies and there is no wallet for Android users yet which means they can't transfer their crypto out of Robinhood.

What is better than Binance?

Popular exchanges are Coinbase which is a publicly traded exchange, Kraken which is known for its security and Robinhood which is a good option if you want to trade both stocks and crypto. The top 10 crypto exchanges by trading volume after Binance are Coinbase, Kraken, ByBit, OKX, Kucoin, Bitsamtp, Gate.io, Bitfinex, and Bitget.

Can I transfer from Robinhood to Binance?

iOS users can download the Robinhood wallet and connect it to the Robinhood exchange. After that, they will be able to transfer their crypto to any wallet or exchange including Binance. There is a waiting list for the Robinhood Android wallet.

Is investing in Binance risky?

Crypto traders should be aware of the following risks when using Binance: Binance is under a continuing lawsuit by the SEC and has already paid out $ 4.3 billion in fines. We don't know what the future holds for the exchange. Also, be aware that like any exchange it is exposed to the risk of being hacked. If you decide to use Binance make sure you use a secure hardware wallet to store your funds and do not leave large amounts of value on Binance or any other exchange.

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Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.