Cash App vs Robinhood: Which Broker is Best for You?
Cash App and Robinhood are both designed to offer one type of investment account: standard and self-directed brokerage accounts. You cannot open a joint account on either platform, and neither offers a robo-advisory service. There are also no retirement, custodial, or college savings accounts offered by either platform, though Robinhood has said it would like to offer IRAs in the future.
READ MORE: Best IRA Accounts
A major difference is that Robinhood allows investors to use margin (borrowed money) to carry out transactions. Robinhood offers a premium membership service called Robinhood Gold, which costs $5 per month. Robinhood Gold gives clients access to margin investing, and some of the most favorable terms we’ve seen. The first $1,000 of margin used is interest free, and beyond this amount, an interest rate of 5.75% annually is charged on the balance.
It’s also worth noting that while neither technically offers a checking account, both offer great money management solutions. The Cash app itself is designed to do just about anything a checking account can do, and Robinhood’s Cash Management account lets users earn interest on their money and provides access to a huge network of ATMs. automatic. So, if you are more looking for an all-in-one financial solution – as opposed to just an investment venue – either of these platforms could work. But Cash App has a small advantage, because being a “verification alternative” is one of the platform’s core competencies.
LEARN MORE: Best Robo-advisors