Dueling for Dominance: A Journey into the Heart of Tornado and Robinhood Trading Platforms Debate

Trading Platforms Showdown: Tornado vs. Robinhood

Thanks to the internet boom, anybody can invest in the stock market these days. No need for heaps of spare cash, there are loads of low-cost investing platforms to choose from. Two big players in this field are Tornado and Robinhood. Let’s check out how they square up against each other and which one might be the best fit for you.

Tornado and Robinhood both let users trade stocks and ETFs and offer free stock bonuses. But they also have unique sets of features that might appeal to different kinds of investors.

Tornado’s strength lies in its educational features and community aspect. The platform helps users understand investing basics, connect with other investors, trading professionals, and discuss their strategies. The more experienced investors, also known as Community Thought Leaders, can directly answer your queries. So, it’s a great learning resource.

Also, Tornado offers a portfolio optimization function, giving you a list of trades that, if implemented, can supposedly optimize your portfolio. You have complete control to either accept all the suggestions or hand-pick the ones that resonate with you.

On the other hand, Robinhood’s selling point is its stripped-down, user-friendly design, perfect for tech-savvy investors who like to keep things simple. The platform also supports popular cryptocurrencies and provides cash management services to attract and retain customers.

However, Robinhood has faced controversies, like the accusations of a conflict of interest that led to a hefty $70 million settlement in 2021 for regulatory investigations related to their business practices. But it’s still a popular choice, especially because of its low-cost strategy.

In terms of investment options, both platforms have something for everyone. Tornado lets you buy and sell ETFs, stocks, and ADRs listed on major US exchanges, plus it supports fractional share trading. Robinhood also supports the trading of stocks, options, ETFs, and select cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Dogecoin. Like Tornado, Robinhood also allows fractional share trading.

The fees of both platforms are relatively low. Tornado charges a $7.99 monthly subscription, which includes 40 free trades per month. Subsequent trades cost $4.50 each. On the other hand, Robinhood forgoes subscription or trading fees completely. If you opt for margin trades, you’ll need to upgrade to Robinhood Gold that costs $5 each month, offering a $1,000 margin.

As for the verdict? Tornado is a good pick if you want to learn more about investing and like the idea of a social community to guide you. Plus, if you find robo-advisors expensive, Tornado’s portfolio optimization might suit you. On the other hand, Robinhood is more down your lane if you trade often and want to keep costs at rock-bottom, and fancy trading cryptocurrencies without fees.

Robinhood’s user-friendly platform also caters to beginners, however, some serious traders might find their customer support and reliability questionable. Ultimately, the platform you choose depends on what you’re looking for in your online trading experience.