Robinhood vs Cash App — Head-to-Head Custody Comparison

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

Verdict

Quick Verdict

Robinhood scores 6.9 vs Cash App's 6.7. Robinhood leads in 4 of 8 categories.

Robinhood is better suited for Stock traders adding crypto, Fee-conscious traders, Beginners. Cash App is better suited for Mainstream users, Beginners, Small investors.

6.9

FairCustody Score

Robinhood

6.7

FairCustody Score

Cash App

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Robinhood	Cash App	Winner
Security	20%	7.0	7.0	Tie
Insurance	15%	6.0	5.0	Robinhood
Regulatory	15%	8.5	8.0	Robinhood
Fee Transparency	10%	6.0	5.5	Robinhood
Track Record	15%	7.0	7.5	Cash App
Withdrawal Flexibility	10%	7.5	8.5	Cash App
Reporting & Audit	10%	8.0	7.0	Robinhood
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	6.9	6.7	Robinhood

Visual

Score Radar

Visual overlay of Robinhood and Cash App across all categories.

RobinhoodCash App

Deep Dive

Category-by-Category Analysis

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

Security (7.0 vs 7.0)

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..

Cash App uses Block Inc. managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: Block Inc. SOC 2. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Insurance (6.0 vs 5.0)

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.

Cash App offers Block Inc. corporate insurance via Via Block Inc.. Publicly traded parent company (Block Inc. / SQ).

Regulatory (8.5 vs 8.0)

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.

Cash App holds NY BitLicense, State money transmitter licenses, FinCEN MSB and is not a qualified custodian operating in United States. Block Inc. (NYSE: SQ) — publicly traded fintech company.

Fee Transparency (6.0 vs 5.5)

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.

Cash App charges None in annual custody fees with ~1.5-2.5% (spread) per transaction. Convenient but higher spread than dedicated exchanges. Free withdrawals.

Track Record (7.0 vs 7.5)

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..

Cash App was founded in 2013 and is headquartered in San Francisco, CA. AUM: Not publicly disclosed. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Withdrawal Flexibility (7.5 vs 8.5)

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

Cash App withdrawal fees: Free Bitcoin withdrawals. Minimum account: No minimum ($1). Supported assets: Bitcoin only.

Reporting & Audit (8.0 vs 7.0)

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

Cash App: SOC compliance is Block Inc. SOC 2. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 2.0)

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

Cash App is a exchange custody provider. Key management: Bitcoin buying within Cash App payment ecosystem. Block Inc. custody..

Fees

Fee Comparison

Side-by-side fee breakdown for Robinhood and Cash App.

Fee Type	Robinhood	Cash App
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0% commission (spread-based ~0.4%)	~1.5-2.5% (spread)
Withdrawal	Network fees	Free Bitcoin withdrawals

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

Cash App: Convenient but higher spread than dedicated exchanges. Free withdrawals.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Robinhood	Cash App
23M+ funded accounts	✓	✗
50M+ monthly users	✗	✓
Auto-invest (DCA)	✗	✓
Bitstamp acquisition	✓	✗
Clean mobile interface	✓	✗
Commission-free trading	✓	✗
Crypto alongside stocks	✓	✗
Crypto wallets with withdrawals	✓	✗
Free Bitcoin withdrawals	✗	✓
Lightning Network support	✗	✓
Mainstream accessibility	✗	✓
Proof of reserves	✗	✓

Recommendation

Who Should Choose Which?

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

Cash App is better if you…

✓Are a mainstream users
✓Are a beginners
✓Are a small investors
✓Are a cash app existing users
✓Want: Most accessible Bitcoin on-ramp — 50M+ users
✓Want: Free Bitcoin withdrawals
✓Want: Publicly traded parent (Block/SQ)

FAQ

Frequently Asked Questions

Is Robinhood or Cash App better for Bitcoin custody?

Robinhood scores 6.9 vs 6.7 in our weighted Custody Score. Robinhood leads in 4 of 8 scoring categories. However, the best choice depends on your specific needs: Robinhood is best for Stock traders adding crypto and Fee-conscious traders, while Cash App suits Mainstream users and Beginners.

What is the difference between Robinhood and Cash App?

Robinhood is a exchange custody provider, while Cash App is a exchange custody provider. Robinhood excels in Regulatory, whereas Cash App is strongest in Withdrawal Flexibility.

How do Robinhood and Cash App fees compare?

Robinhood charges None annual custody fees with 0% commission (spread-based ~0.4%) transaction fees. Cash App charges None annual custody fees with ~1.5-2.5% (spread) transaction fees.

Which is more secure, Robinhood or Cash App?

Robinhood scores 7.0/10 for security while Cash App scores 7.0/10. Robinhood uses Exchange-managed custody key management, and Cash App uses Block Inc. managed custody.