Robinhood vs Swan Bitcoin — Head-to-Head Custody Comparison

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

Verdict

Quick Verdict

Robinhood scores 6.9 vs Swan Bitcoin's 6.7. Robinhood leads in 4 of 8 categories.

Robinhood is better suited for Stock traders adding crypto, Fee-conscious traders, Beginners. Swan Bitcoin is better suited for Bitcoin savers (DCA), IRA investors, Bitcoin education seekers.

6.9

FairCustody Score

Robinhood

6.7

FairCustody Score

Swan Bitcoin

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Robinhood	Swan Bitcoin	Winner
Security	20%	7.0	7.0	Tie
Insurance	15%	6.0	5.5	Robinhood
Regulatory	15%	8.5	7.0	Robinhood
Fee Transparency	10%	6.0	8.0	Swan Bitcoin
Track Record	15%	7.0	6.5	Robinhood
Withdrawal Flexibility	10%	7.5	8.5	Swan Bitcoin
Reporting & Audit	10%	8.0	6.0	Robinhood
Counterparty Diversification	5%	2.0	3.5	Swan Bitcoin
Overall Score	100%	6.9	6.7	Robinhood

Visual

Score Radar

Visual overlay of Robinhood and Swan Bitcoin across all categories.

RobinhoodSwan Bitcoin

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..

Swan Bitcoin uses Fortress Trust / BitGo custody key management with Majority cold (via partners) in cold storage and regular penetration testing. Compliance: Via partners. Incident history: No incidents.

Insurance (6.0 vs 5.5)

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.

Swan Bitcoin offers Via Fortress Trust / BitGo custody partners via Via custody partners. Custody through regulated partners with their own insurance.

Regulatory (8.5 vs 7.0)

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.

Swan Bitcoin holds FinCEN MSB, State licenses via partners and is not a qualified custodian operating in United States. US-based. Custody through Fortress Trust (regulated trust company).

Fee Transparency (6.0 vs 8.0)

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.

Swan Bitcoin charges None (exchange) / 0.39% (IRA) in annual custody fees with 0.99% (instant) / 0.49% (auto-DCA) per transaction. Automated DCA with competitive fees. IRA available. Free auto-withdrawal to own wallet.

Track Record (7.0 vs 6.5)

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..

Swan Bitcoin was founded in 2019 and is headquartered in Los Angeles, CA. AUM: Not publicly disclosed. Incident history: No incidents.

Withdrawal Flexibility (7.5 vs 8.5)

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

Swan Bitcoin withdrawal fees: Free auto-withdrawals. Minimum account: $10 minimum. Supported assets: Bitcoin only.

Reporting & Audit (8.0 vs 6.0)

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

Swan Bitcoin: SOC compliance is Via partners. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 3.5)

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

Swan Bitcoin is a exchange custody provider. Key management: Bitcoin savings platform with Fortress Trust / BitGo custody partnership..

Fees

Fee Comparison

Side-by-side fee breakdown for Robinhood and Swan Bitcoin.

Fee Type	Robinhood	Swan Bitcoin
Setup Fee	Free	Free
Annual Custody	None	None (exchange) / 0.39% (IRA)
Transaction	0% commission (spread-based ~0.4%)	0.99% (instant) / 0.49% (auto-DCA)
Withdrawal	Network fees	Free auto-withdrawals

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

Swan Bitcoin: Automated DCA with competitive fees. IRA available. Free auto-withdrawal to own wallet.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Robinhood	Swan Bitcoin
23M+ funded accounts	✓	✗
Advisor services	✗	✓
Automated DCA	✗	✓
BitGo custody	✗	✓
Bitcoin IRA	✗	✓
Bitcoin education	✗	✓
Bitstamp acquisition	✓	✗
Clean mobile interface	✓	✗
Commission-free trading	✓	✗
Crypto alongside stocks	✓	✗
Crypto wallets with withdrawals	✓	✗
Free auto-withdrawal to own wallet	✗	✓

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

Swan Bitcoin is better if you…

✓Are a bitcoin savers (dca)
✓Are a ira investors
✓Are a bitcoin education seekers
✓Are a long-term accumulators
✓Want: Best Bitcoin DCA platform
✓Want: Free auto-withdrawal to own wallet
✓Want: Bitcoin IRA offering

FAQ

Frequently Asked Questions

Is Robinhood or Swan Bitcoin 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 Swan Bitcoin suits Bitcoin savers (DCA) and IRA investors.

What is the difference between Robinhood and Swan Bitcoin?

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

How do Robinhood and Swan Bitcoin fees compare?

Robinhood charges None annual custody fees with 0% commission (spread-based ~0.4%) transaction fees. Swan Bitcoin charges None (exchange) / 0.39% (IRA) annual custody fees with 0.99% (instant) / 0.49% (auto-DCA) transaction fees.

Which is more secure, Robinhood or Swan Bitcoin?

Robinhood scores 7.0/10 for security while Swan Bitcoin scores 7.0/10. Robinhood uses Exchange-managed custody key management, and Swan Bitcoin uses Fortress Trust / BitGo custody.