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.
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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 that amount an interest rate of 2.5% per annum 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 allows users to earn interest on their money and provides access to a vast 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.
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