Coinbase vs Robinhood — Head-to-Head Custody Comparison

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

Verdict

Quick Verdict

Coinbase scores 7.8 vs Robinhood's 6.9. Coinbase leads in 6 of 8 categories.

Coinbase is better suited for Beginners, US-based investors, Passive holders. Robinhood is better suited for Stock traders adding crypto, Fee-conscious traders, Beginners.

7.8

GoodCustody Score

Coinbase

6.9

FairCustody Score

Robinhood

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase	Robinhood	Winner
Security	20%	8.0	7.0	Coinbase
Insurance	15%	7.0	6.0	Coinbase
Regulatory	15%	9.5	8.5	Coinbase
Fee Transparency	10%	6.0	6.0	Tie
Track Record	15%	8.5	7.0	Coinbase
Withdrawal Flexibility	10%	8.0	7.5	Coinbase
Reporting & Audit	10%	9.0	8.0	Coinbase
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.8	6.9	Coinbase

Visual

Score Radar

Visual overlay of Coinbase and Robinhood across all categories.

CoinbaseRobinhood

Deep Dive

Category-by-Category Analysis

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

Security (8.0 vs 7.0)

Coinbase uses Institutional cold storage system key management with 98%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 account takeover attacks (phishing, not platform breach).

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 (7.0 vs 6.0)

Coinbase offers Crypto insurance for hot wallet portion. FDIC on USD (up to $250K). via Crime insurance policy. Publicly traded company. FDIC insurance on cash. Crypto hot wallet insured.

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 (9.5 vs 8.5)

Coinbase holds NASDAQ listed (COIN), FinCEN MSB, NY BitLicense, State licenses, Multiple international licenses and is a qualified custodian operating in United States / Global. Most regulated US exchange. Publicly traded. Custodian for multiple Bitcoin ETFs.

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 (6.0 vs 6.0)

Coinbase charges None in annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) per transaction. Simple interface has higher fees. Advanced trading has competitive fees.

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 (8.5 vs 7.0)

Coinbase was founded in 2012 and is headquartered in San Francisco, CA. AUM: $130B+ assets on platform. Incident history: 2021 account takeover attacks (phishing, not platform breach).

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)

Coinbase withdrawal fees: Network fees. Minimum account: No minimum ($1). Supported assets: Bitcoin, Ethereum, 250+ cryptocurrencies.

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

Reporting & Audit (9.0 vs 8.0)

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

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

Counterparty Diversification (2.0 vs 2.0)

Coinbase is a exchange custody provider. Key management: Exchange-managed custody with institutional-grade cold storage infrastructure..

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 Coinbase and Robinhood.

Fee Type	Coinbase	Robinhood
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	~1.5% (Simple) / 0.05-0.6% (Advanced)	0% commission (spread-based ~0.4%)
Withdrawal	Network fees	Network fees

Coinbase: Simple interface has higher fees. Advanced trading has competitive fees.

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

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase	Robinhood
23M+ funded accounts	✗	✓
98%+ cold storage	✓	✗
Beginner-friendly interface	✓	✗
Bitstamp acquisition	✗	✓
Clean mobile interface	✗	✓
Coinbase Vault for extra security	✓	✗
Commission-free trading	✗	✓
Crypto alongside stocks	✗	✓
Crypto wallets with withdrawals	✗	✓
ETF custodian (BlackRock IBIT)	✓	✗
FDIC on USD	✓	✗
Publicly traded (NASDAQ)	✓	✗

Recommendation

Who Should Choose Which?

Coinbase is better if you…

✓Are a beginners
✓Are a us-based investors
✓Are a passive holders
✓Are a mainstream adopters
✓Want: Publicly traded — maximum transparency
✓Want: Custodian for BlackRock and other ETFs
✓Want: 98%+ cold storage

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 Coinbase or Robinhood better for Bitcoin custody?

Coinbase scores 7.8 vs 6.9 in our weighted Custody Score. Coinbase leads in 6 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase is best for Beginners and US-based investors, while Robinhood suits Stock traders adding crypto and Fee-conscious traders.

What is the difference between Coinbase and Robinhood?

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

How do Coinbase and Robinhood fees compare?

Coinbase charges None annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) transaction fees. Robinhood charges None annual custody fees with 0% commission (spread-based ~0.4%) transaction fees.

Which is more secure, Coinbase or Robinhood?

Coinbase scores 8.0/10 for security while Robinhood scores 7.0/10. Coinbase uses Institutional cold storage system key management, and Robinhood uses Exchange-managed custody.