In the ever-evolving world of finance, the lines between traditional stock markets and the dynamic realm of cryptocurrencies are increasingly blurring.
If you are a crypto trader, you’ve obviously ridden the rollercoaster of Bitcoin’s highs and lows, navigated the promising alleys of altcoins, and perhaps even dabbled in DeFi.
But what if the next big move for you isn’t just about jumping from one cryptocurrency project to another but bridging the gap to the world of stocks and equities?
Well, diversifying across both realms might be the strategy that cushions you from crypto volatility and leverages the growth of your portfolio.
To find the best of both worlds, here is an article unpacking the best hybrid platforms that let you trade stocks and crypto.
eToro: Ideal for Copy Trading Stocks and Crypto
Founded in 2007, eToro has established itself as a front-runner in the world of online trading. Catering to various trading needs, eToro offers a low-cost solution for stock, CFD, forex, and crypto trading. One of the hallmarks of its service is an exceptional mobile app streamlining trading for on-the-go users.
For traders, the security of funds remains paramount. With eToro, investors can be at ease knowing their funds are safeguarded. UK-based clients have a protection of £85k, E.U. clients are secured up to €20k, and U.S. clients receive an impressive cover of $500k, with up to $250k for cash. This commitment to investor protection reinforces eToro’s reliability.
With eToro, you can take advantage of their innovative ‘CopyTrading’ feature, which enables you to automatically mimic the trades of successful investors in real time.
When it comes to stocks, eToro offers commission-free trading for real stocks, meaning they don’t charge a fixed fee per trade. Instead, they make money from the spread, which is the difference between the buy and sell prices. This allows you to invest in stocks without worrying about additional trading fees.
eToro’s crypto offerings are also comprehensive, with a wide range of popular cryptocurrencies available for trading. They charge a spread on cryptocurrency trades, which can vary depending on the crypto asset. For example, Bitcoin might have a spread of 0.75%, while other cryptos could have higher or lower spreads.
In terms of fees, eToro charges withdrawal fees and inactivity fees if your account remains dormant for a specified period. However, the absence of commission fees for stock and crypto trading makes eToro an attractive option for traders looking to minimize costs.
Robinhood: Commission-Free Trades
Taking the trading world by storm, Robinhood revolutionized the industry with its commission-free model, making it a popular choice among young and novice traders.
With Robinhood, you can trade stocks, options, and ETFs without paying any commission fees. This feature has made investing in the stock market more accessible to individuals with limited funds.
Additionally, Robinhood also offers a platform for cryptocurrency trading. When it comes to crypto, Robinhood allows you to buy, sell, and hold popular cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. However, it’s important to note that you don’t have control over your crypto holdings on Robinhood.
This means that you cannot transfer your cryptocurrencies out of the platform or use them for other purposes. It’s more of a simplified approach to crypto trading, catering to beginners who want an easy way to get started.
In terms of fees, Robinhood earns revenue through methods like order flow payment and spreads on crypto trades. This means that while you don’t pay commission fees, there might be other costs associated with your trades.
WeBull: Access Comprehensive Research Tools
WeBull, unlike some other trading platforms, offers comprehensive research tools and insights, making it an ideal choice for intermediate and experienced traders.
Founded in 2017, WeBull specifically targets this group of traders and provides them with the necessary tools to make informed investment decisions.
When it comes to stocks, WeBull offers commission-free trading for stocks, options, and ETFs in the U.S. This means that you can trade these assets without incurring any additional fees.
Additionally, WeBull provides extended trading hours, allowing you to take advantage of market opportunities even outside regular trading hours. The platform also offers in-depth analytical tools, giving you access to advanced charting features and technical indicators.
WeBull has also expanded its offerings to include cryptocurrency trading. You can trade popular cryptocurrencies on the platform and benefit from real-time crypto data. One notable feature is that WeBull provides an insurance policy for your crypto assets, adding an extra layer of security to your investments.
While WeBull doesn’t charge commission fees for stock or crypto trading, it’s important to note that there might be charges related to wire transfers, ADR fees, and margin trading. However, for intermediate and experienced traders looking for a platform with crypto and stock trading capabilities, not to mention research tools and insights, WeBull is definitely worth considering.
CashApp: Trade Bitcoin and Stocks with $1
If you’re an aspiring investor looking for a beginner-friendly platform that offers both stock and cryptocurrency trading, CashApp might be just what you need. CashApp, owned by Square Inc., initially started as a peer-to-peer payment service but has expanded its features over time.
One of its notable offerings is the ability to purchase stocks with as little as $1, allowing users to access fractional shares. This feature makes it an ideal platform for beginners who are looking to dip their toes into the stock market.
In terms of cryptocurrency, CashApp began its foray with Bitcoin. Users can buy, sell, and transfer Bitcoin using the app. However, it’s important to note that while you can withdraw Bitcoin from CashApp, other cryptocurrencies can only be bought or sold within the platform.
When it comes to fees, CashApp charges variable fees for Bitcoin transactions, which are based on market activity. However, for stock trading, there are no added fees, making it a cost-effective option for those interested in both stocks and cryptocurrencies.
Conclusion: One-Stop Shop
When it comes to finding the best crypto exchanges that also offer stocks, it ultimately depends on your individual preferences and needs.
eToro stands out for its unique blend of traditional asset trading and cryptocurrency options.
Robinhood is known for its commission-free trading of U.S. stocks, options, and ETFs, along with a platform for cryptocurrency trading.
WeBull offers commission-free trading for stocks, options, ETFs, and access to popular cryptocurrencies.
CashApp, while primarily a payment service, also allows users to purchase stocks with fractional shares and offers Bitcoin trading.
Consider your priorities and choose the platform that suits you best.