Cash App Vs Robinhood | 2022 The Ultimate Comparision

cash app vs robinhood

Robinhood is a trading platform and cash application that allows users to trade ETFs, stocks, options, and cryptocurrency free of commission.

Robinhood trading and an investment platform was created by Robinhood Markets in 2013 with headquarters in California. The mobile application that allows easier trading and investing was released in 2015.

Cash App is a banking service that allows users to easily send and receive money in a peer-to-peer fashion. Cash App was created by Square Inc. and released in 2013.

Ever since Cash App topped as the number one banking application with over 30 million users in 2021. Cash App offers options for investing and banking aside from its basic function for sending and receiving funds in a couple of clicks.

Which of the two platforms offer more perks, and which one is better, Robinhood or Cash App?

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Feature Comparison

Cash App and Robinhood have some similarities when it comes to functionality, however, the two platforms are essentially different. Features can play a major role in the functionality of a brokerage platform, so what are some of the strongest features that each of the platforms has?

Cash AppRobinhood
InvestingInstant deposits
Peer-to-peer paymentsCryptocurrency investing
Bitcoin investmentsCash management
ACH paymentsIPO investing
Direct depositsFractional shares
 Margin investing

Cash App

Cash App Investing

Cash App allows users to invest in a great variety of funds and a great number of stocks. Investing feature is suitable both for professionals and beginners who are only entering the world of financial markets.

You can invest as little as $1 and own fractions of shares you are interested in. You can also invest in small portions of shares and invest with no commissions involved.

Peer-to-peer payments

Cash App enables users to easily send and receive money in an instant and at low commissions. Instant peer-to-peer payments are the main feature available on Cash App, while this was also the primary function of the application. Anyone with an account can send and receive money in an instant.  

Direct deposits with Cash App

Direct deposits enable users to take and use their paychecks up to 2 days earlier. In addition, Cash App allows you to speed up direct deposits with free usage of ATM withdrawals in case you have a regular income to Cash App every month, greater than $300.

Bitcoin Investments

You can invest in Bitcoin with Cash App, while users can buy portions of the top cryptocurrency at any time directly from the application. You can manage your Bitcoin funds, send and receive BTC, and transfer Bitcoin to other digital wallets.

ACH payments

ACH payments (Automated Clearing House) is another feature that allows Cash App users to receive bank-to-bank transactions. Ultimately, you can manage all your investment and banking needs through Cash App mobile application, which includes ACH.

Robinhood

Instant deposits

Robinhood allows instant deposits for all account holders which means that you can instantly use your funds – however, that doesn’t mean that you will always get your funds in minutes after initiating your deposit.

Robinhood explains on their official FAQ, that you can have immediate access to $1,000 in deposits, while the company emphasizes that it may take up to 5 business days for your deposit to get processed by your bank and sent to your account.

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Cryptocurrency Investing

Robinhood features cryptocurrency investments, following up with a growing trend of cryptocurrency assets, DeFi and blockchain derivatives. You can invest in fractions of all top-ranked cryptocurrencies, which include Bitcoin, Litecoin, and Ethereum.

You can also invest in Ethereum Classic, Bitcoin Cash, Dogecoin, and Bitcoin SV. Robinhood cryptocurrency investing is legal, regulated, and available in every US state and the District of Columbia. Robinhood cryptocurrency investing is still not available for Nevada and Hawaii.

Robinhood crypto is also a subsidiary of Robinhood Markets and is available through the Robinhood brokerage platform.

Cash management

Robinhood Cash management is an excellent feature available on Robinhood account and it allows users to earn a stable 0.30% on their APY (annual percentage yield) on your funds.

The feature works similarly to a savings or checking account except that you don’t own one on the brokerage platform. Robinhood extends insurance on your funds by depositing your cash to partner banks, paying 0.30% APY on the cash you have saved via the Robinhood Cash management feature.

IPO investing

Robinhood offers IPO investing through the IPO Access feature. IPO Access allows users to request IPO stocks (Initial Public Offering) as they become available in the market.

Any account holder can create a request, or multiple requests, to invest in certain IPOs, and Robinhood may approve access to all, some, or none of the request stocks. Robinhood uses a random allocation process to choose eligible investors, and in this process, the number of requested IPOs doesn’t play a determining factor.

Fractional shares

The fractional shares feature on Robinhood enables users to own a piece of ETFs and shares that would normally cost thousands of dollars per unit.

This feature widens the circle of eligible investors that otherwise wouldn’t be able to afford to invest in an entire share worth thousands of dollars. Trading shares is commission-free and processed in real-time, so you have access to relevant market data and the ability to sell and buy positions instantly.

You can buy fractional shares in ratio 1:1000000. All orders that are initialized and executed during open market hours, will be instantly processed.

Margin investing

Margin investing is a feature on Robinhood that allows account holders to borrow money to trade with from Robinhood. The borrowed money can be used for buying securities.

Essentially, margin investing makes your funds flexible, however, this feature is not available to all users. To use margin trading and generate more value for your securities account based on your holdings in margin investing, you need to upgrade to Robinhood Gold account. Even when you upgrade, you will still have to prove your eligibility.

Service Comparison

Cash AppRobinhood
Cash BoostRobinhood Crypto
Cash CardStocks, options, ETFs
Business AccountMultiple accounts

Cash App

Cash Boost

Cash Boost is a new service that rewards users for using Cash Card for purchases at restaurants, shops, and different retail stores.

This service can only be used with a Cash Card. Cash Boost is similar to a reward program as Cash Card users are given discounts with each payment in case, they applied Boost service before paying. In case the discount doesn’t apply automatically, users can submit that payment for a review.

Cash Card

Cash Card is free of charge Visa debit card that is connected to your account and can be used on ATMs and for card-based payments in online and physical stores.

You can order Cash Card via your account. The card should arrive at your provided address in 10 business days, while you can use it on Google Play, Apple Store, and other online stores based on the Cash Card information you are given once your order is processed.

Cash App Business Account

Cash App offers Personal and Business accounts for users, where Business Account enables account holders to receive unlimited amounts of money from their clients, making the app perfect for business and cash management.

Robinhood

Robinhood Crypto

Robinhood Crypto is a subsidiary of Robinhood Markets and this service is available on the Robinhood brokerage platform.

You can invest in all the top traded cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, while you also have access to real-time data.

Robinhood is working on adding more cryptocurrencies for which the platform already offers real-time data. You can buy cryptos on Robinhood with 0% in commissions, unlike many different exchanges that take up to 4% for buying and selling cryptocurrency.

Stocks, options, and ETF trading

Robinhood offers investing in over 5,000 different stocks and most ETFs (exchange-traded funds) that are available in the US market.

ETFs may cover a wide range of investment products, which includes bonds, stocks, futures, mutual funds, and options. You can also invest in US equities. Users can get involved with options trading. You can get access to real-time data and immediate execution of trades during open market hours.

Multiple accounts

When you register on Robinhood, you are automatically assigned a Robinhood Instant account with instant access to up to a $1,000 deposit.

With Robinhood Instant, you can trade on an unsettled balance, which means that your funds are available and at your disposal even before the settlement.

Users also have access to extended trading hours. For larger instant deposits and margin investing, users can open a Robinhood Gold account.

With Robinhood Gold, you will also have access to advanced market research and level 2 market data. Robinhood Cash is essentially a downgrade from the basic account, which is Robinhood Instant. You can change your account from Instant and Gold to Cash at any time, but you won’t be able to trade with unsettled balances.

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How do I open an account?

Opening a Cash App account is fairly easy as you’ll get approved almost instantly by either providing your email address or phone number. Robinhood will require an application for registering and opening an account, which may take a few days.  

Cash App

To open an account on Cash App, you need to provide your email or phone number via the Cash App application. You will receive a verification code via email or phone number once you apply. You only need to connect your card to the app to start using it for banking, payments and investing.

Cash App offers two types of accounts:

1.       Personal

2.      Business

Robinhood

To open an account on Robinhood, you need to send an application via the Robinhood app. They are pretty quick to get back to you with an email.

Your application can either be approved or denied. The Robinhood team may also request more information after you apply.

Robinhood may ask for personal identification to create an account for you and the review may take up to seven business days.  

Robinhood offers three types of user accounts:

1.       Robinhood Instant

2.      Robinhood Gold

3.      Robinhood Cash

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How to trade?

Once you decide which platform to go for and open an account you can start trading. Let’s see how you can trade on Cash App and Robinhood.

Cash App

Trading on Cash App is fairly easy as the company created a highly intuitive application. To start trading offered assets, you need to go to Investing tab and choose the stock you wish to invest in. Enter the amount in dollars you wish to invest and click Buy.

You can also choose to sell your positions by clicking Sell. To trade Bitcoin, choose the Bitcoin tab, enter the amount and just click on the Sell or Buy option.

Robinhood

You can easily trade on Robinhood by choosing which asset you would like to buy or sell out of numerous options available on Robinhood, including ETFs and over 5,000 different US stocks and shares.

The user interface is rather intuitive, and all trades are executed within a couple of clicks. You can review your trade order before execution to check the details.

Fees comparison

PlatformCash AppRobinhood
Brokerage Fees$0$0
Transaction Fees3% (credit card), 0% (debit card, bank account)$75 (transfer fee)
Withdrawal Fee $0
Deposit Fee1.5%$0
Inactivity fee$0$0

Robinhood will charge additional fees on margin investing based on the borrowed sum you are using to trade securities however overall Robinhood has better features and ease of use.

Are these platforms regulated?

Cash App

The company behind Cash App, Square Inc, is registered as Electronic Money Institution and regulated by the Financial Conduct Authority (FCA) in Europe.

The money held on Cash App is not FDIA-secured, which means that you can’t get your money back if you send it to the wrong person by accident. Since the funds aren’t federally backed, that means that you may not be compensated in case of fraudulent activity.

Robinhood

Robinhood is regulated by the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA).

Who is Cash App best for?

Cash App is excellent for individual and business users who are looking for a single app that can help them manage transactions, payments, banking, and investing in financial assets. Even if you are a beginner investor, you will be able to find your way around the markets easily with a user-friendly interface.

Who is Robinhood best for?

Robinhood is perfect for both experienced and beginner traders as users can choose from three types of accounts to match their needs. Robinhood offers fractional shares for low-entry investors, while you can also invest in a great number of top-traded cryptocurrencies.

Cash App Pros and Cons

ProsCons
Buy Bitcoin in seconds and infractionsOnly Bitcoin is available for crypto investing
Cash Card for ATM withdrawals and online and physical purchasesA relatively low number of financial instruments
Send and receive cash instantly 
Relatively low fees in comparison to competitors 
Streamlined interface and user-friendly app 
Great for beginners 

Robinhood Pros and Cons

ProsCons
A great number of financial instruments to trade withSome fees are fairly hefty, especially transfer fees to move your funds out of the platform
All top-traded cryptocurrencies are available to BUY and SELL, more to be added in the futureRegistering and opening an account may take more than a week
Margin investing for securities 
Three different types of accounts 
The ability to use unsettled balances 
Suitable for experienced and beginner traders 

RobinHood – Get a free stock worth up to $200 

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