Bitstamp vs Robinhood — Head-to-Head Custody Comparison

An independent, data-driven comparison of Bitstamp and Robinhood across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Bitstamp scores 7.5 vs Robinhood's 6.9. Bitstamp leads in 6 of 8 categories.

Bitstamp is better suited for European investors, Institutional traders, Long-term exchange users. Robinhood is better suited for Stock traders adding crypto, Fee-conscious traders, Beginners.

7.5

GoodCustody Score

Bitstamp

6.9

FairCustody Score

Robinhood

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Bitstamp	Robinhood	Winner
Security	20%	7.5	7.0	Bitstamp
Insurance	15%	6.5	6.0	Bitstamp
Regulatory	15%	8.5	8.5	Tie
Fee Transparency	10%	8.0	6.0	Bitstamp
Track Record	15%	8.0	7.0	Bitstamp
Withdrawal Flexibility	10%	8.0	7.5	Bitstamp
Reporting & Audit	10%	7.5	8.0	Robinhood
Counterparty Diversification	5%	3.0	2.0	Bitstamp
Overall Score	100%	7.5	6.9	Bitstamp

Visual

Score Radar

Visual overlay of Bitstamp and Robinhood across all categories.

BitstampRobinhood

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (7.5 vs 7.0)

Bitstamp uses BitGo custody partnership key management with 95%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2015 hot wallet breach (19,000 BTC). Fully repaid users..

Robinhood uses Exchange-managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 data breach (customer info, not funds). Crypto wallets added later..

Insurance (6.5 vs 6.0)

Bitstamp offers BitGo custody insurance for cold storage via Via BitGo. Cold storage through BitGo with insurance coverage.

Robinhood offers SIPC for securities (NOT crypto). Crime insurance for crypto. via SIPC (securities) + crime insurance. SIPC coverage for stocks. Crypto has separate crime insurance.

Regulatory (8.5 vs 8.5)

Bitstamp holds Luxembourg payment institution license, FCA registered (UK), Multiple EU licenses and is not a qualified custodian operating in Luxembourg / EU / Global. Luxembourg-licensed. One of the most established exchanges globally.

Robinhood holds NASDAQ listed (HOOD), SEC/FINRA registered (securities), State money transmitter licenses (crypto) and is a qualified custodian operating in United States. Publicly traded. SEC registered for securities. State-licensed for crypto.

Fee Transparency (8.0 vs 6.0)

Bitstamp charges None in annual custody fees with 0.0-0.4% tiered per transaction. Competitive tiered fee structure. One of Europe's most established exchanges.

Robinhood charges None in annual custody fees with 0% commission (spread-based ~0.4%) per transaction. Commission-free trading. Revenue from spread and payment for order flow.

Track Record (8.0 vs 7.0)

Bitstamp was founded in 2011 and is headquartered in Luxembourg. AUM: $5B+ trading volume. Incident history: 2015 hot wallet breach (19,000 BTC). Fully repaid users..

Robinhood was founded in 2013 and is headquartered in Menlo Park, CA. AUM: $130B+ in assets under custody (all assets). Incident history: 2021 data breach (customer info, not funds). Crypto wallets added later..

Withdrawal Flexibility (8.0 vs 7.5)

Bitstamp withdrawal fees: Network fees. Minimum account: $10 minimum. Supported assets: Bitcoin, Ethereum, 80+ cryptocurrencies.

Robinhood withdrawal fees: Network fees. Minimum account: $1 minimum. Supported assets: Bitcoin, Ethereum, 20+ cryptocurrencies.

Reporting & Audit (7.5 vs 8.0)

Bitstamp: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Robinhood: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Counterparty Diversification (3.0 vs 2.0)

Bitstamp is a exchange custody provider. Key management: Exchange-managed custody with BitGo partnership for cold storage..

Robinhood is a exchange custody provider. Key management: Exchange-managed custody with option to withdraw crypto to external wallets..

Fees

Fee Comparison

Side-by-side fee breakdown for Bitstamp and Robinhood.

Fee Type	Bitstamp	Robinhood
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.0-0.4% tiered	0% commission (spread-based ~0.4%)
Withdrawal	Network fees	Network fees

Bitstamp: Competitive tiered fee structure. One of Europe's most established exchanges.

Robinhood: Commission-free trading. Revenue from spread and payment for order flow.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Bitstamp	Robinhood
13+ year track record	✓	✗
23M+ funded accounts	✗	✓
BitGo custody partnership	✓	✗
Bitstamp acquisition	✗	✓
Clean mobile interface	✗	✓
Commission-free trading	✗	✓
Crypto alongside stocks	✗	✓
Crypto wallets with withdrawals	✗	✓
Institutional API	✓	✗
Low trading fees	✓	✗
Luxembourg banking license	✓	✗
SEPA/SWIFT support	✓	✗

Recommendation

Who Should Choose Which?

Bitstamp is better if you…

✓Are a european investors
✓Are a institutional traders
✓Are a long-term exchange users
✓Are a fiat gateway seekers
✓Want: 13+ year track record — among oldest exchanges
✓Want: Luxembourg banking license
✓Want: Competitive fee structure

Robinhood is better if you…

✓Are a stock traders adding crypto
✓Are a fee-conscious traders
✓Are a beginners
✓Are a us retail investors
✓Want: Commission-free crypto trading
✓Want: Crypto alongside stock portfolio
✓Want: Publicly traded — transparent

FAQ

Frequently Asked Questions

Is Bitstamp or Robinhood better for Bitcoin custody?

Bitstamp scores 7.5 vs 6.9 in our weighted Custody Score. Bitstamp leads in 6 of 8 scoring categories. However, the best choice depends on your specific needs: Bitstamp is best for European investors and Institutional traders, while Robinhood suits Stock traders adding crypto and Fee-conscious traders.

What is the difference between Bitstamp and Robinhood?

Bitstamp is a exchange custody provider, while Robinhood is a exchange custody provider. Bitstamp excels in Regulatory, whereas Robinhood is strongest in Regulatory.

How do Bitstamp and Robinhood fees compare?

Bitstamp charges None annual custody fees with 0.0-0.4% tiered transaction fees. Robinhood charges None annual custody fees with 0% commission (spread-based ~0.4%) transaction fees.

Which is more secure, Bitstamp or Robinhood?

Bitstamp scores 7.5/10 for security while Robinhood scores 7.0/10. Bitstamp uses BitGo custody partnership key management, and Robinhood uses Exchange-managed custody.