Is it still cheaper than trading on Coinbase?

``` The deep research logic is organized as follows: Okay, let's tackle this question: "Is it still cheaper than trading on Coinbase?" The user is comparing Robinhood and Coinbase in terms of fees. First, I need to gather all the relevant fee structures from the provided references. Starting with Coinbase. From references 1, 2, 4, and 13, Coinbase uses a maker-taker fee model. The fees vary based on trading volume tiers. For example, the taker fee ranges from 60bps for small volumes up to 5bps for the highest tier. Maker fees are lower, starting at 40bps down to 0bps. There are also additional fees for network transactions, Lightning Network processing, and USDC to USD conversions. The fees can vary, and there's a mention of efficiency gains that might affect the final fee. Now, looking at Robinhood. The user's previous questions and the references (6, 7, 9, 10, 17, 22, 24, 29, 30) indicate that Robinhood offers tokenized stocks and crypto products. The key point here is that Robinhood charges no commission fees for stock and ETF trades, but there are regulatory fees (SEC and FINRA) and other fees for crypto products like staking and futures. However, the user is asking about trading fees, so focusing on the trading aspect. The user's previous answers mentioned that Robinhood doesn't charge commission fees but has regulatory fees. The SEC fee is $0.0000051 per trade, and the FINRA fee is $0.000119 per share, capped at $5.95. These are relatively low compared to traditional brokerages but need to be compared to Coinbase's fees. Comparing the two, Coinbase's trading fees are based on volume and can be as low as 5bps for high-volume traders, which is 0.05%. For example, a $1 million trade would have a taker fee of 0.05%, which is $500. On the other hand, Robinhood's regulatory fees for a stock trade would be the SEC fee (0.00051% of the trade amount) and the FINRA fee (0.0119% per share). For a $1 million trade, the SEC fee would be $51, and the FINRA fee would depend on the number of shares. If it's 100 shares, the FINRA fee would be $11.90, totaling $62.90. That's significantly cheaper than Coinbase's $500 for the same trade size. However, for smaller trades, the FINRA fee has a maximum of $5.95, so a small trade might have a higher percentage fee. For example, a $100 trade would have a SEC fee of $0.051 and a FINRA fee of $5.95, totaling $6.00, which is 6% of the trade. That's much higher than Coinbase's 60bps (0.6%) for small volumes. But for larger trades, Robinhood is cheaper. Additionally, Coinbase has other fees like network transaction fees and Lightning Network processing, which can add up. Robinhood's crypto fees, like staking and futures, aren't directly comparable to trading fees, but the user is asking about trading, so focusing on that. In conclusion, for high-volume traders, Robinhood is cheaper due to lower regulatory fees compared to Coinbase's maker-taker model. For small trades, Coinbase might be more cost-effective. The user's context mentions they're interested in crypto trading, so the comparison should highlight that for crypto, Coinbase's fees are structured differently, but for stock trading, Robinhood's no-commission model with low regulatory fees makes it cheaper for larger trades. ``` ### **Conclusion** **Robinhood is generally cheaper than Coinbase for stock and ETF trading, but Coinbase may be more cost-effective for high-frequency or large-scale cryptocurrency trading**. Below is a detailed comparison of fees for both platforms, focusing on their respective fee structures and use cases. --- ### **Fee Comparison: Robinhood vs. Coinbase** #### **1. Stock/ETF Trading Fees** | Platform | Commission Fees | Regulatory Fees (FINRA/SEC) | Additional Fees | |----------------|------------------|-------------------------------|-----------------| | **Robinhood** | **$0** (no commission) | $0.0000051 (SEC) + $0.000119 (FINRA) per share | None for stock/ETFs | | **Coinbase** | **$0** (no commission) | **$0** (no regulatory fees) | Network fees (e.g., miner fees, Lightning Network: 0.1% fee) | **Key Insight**: - **Robinhood** is cheaper for **small to medium-sized stock trades** due to its **$0 commission policy** and low regulatory fees (e.g., $5.95 max FINRA fee per trade). - **Coinbase** is more expensive for stock trading due to **network fees** (e.g., miner fees for crypto transactions) and **variable fees** for crypto conversions (e.g., 0.1% for Lightning Network). --- #### **2. Cryptocurrency Trading Fees** | Platform | Maker Fee | Taker Fee | Volume Tier Breakpoints | Additional Fees | |----------------|------------|------------|--------------------------|-----------------| | **Robinhood** | **N/A** (no maker-taker model) | **N/A** (no maker-taker model) | N/A | Staking fees (e.g., Ethereum: 0.1%–0.5%) | | **Coinbase** | 0%–6bps | 5bps–60bps | $0K–$400M+ | Network fees (e.g., miner fees, Lightning Network: 0.1% fee) | **Key Insight**: - **Robinhood** is cheaper for **casual crypto trading** due to its **no-commission policy** and **zero fees for tokenized stocks** . - **Coinbase** is more expensive for **high-frequency or large-scale crypto trading** due to its **maker-taker fee model** (e.g., 60bps for small volumes) and **network fees** (e.g., 0.1% for Lightning Network). --- #### **3. Overall Cost Efficiency** | Platform | Best For... | Why? | |----------------|-------------|------| | **Robinhood** | **Small to medium-sized stock trades** | $0 commission + low regulatory fees (e.g., $5.95 max FINRA fee). | | **Coinbase** | **High-frequency or large-scale crypto trading** | Maker-taker fee model (e.g., 0%–6bps for makers, 5bps–60bps for takers) + network fee transparency. | --- ### **Final Takeaway** If you’re primarily trading **stocks or ETFs**, **Robinhood** is the cheaper option due to its **$0 commission policy** and **low regulatory fees**. However, if you’re actively trading **cryptocurrencies** (especially at high volumes), **Coinbase** may be more cost-effective due to its **maker-taker fee model** and **network fee transparency**.