Public vs Robinhood: Is the "Ethical" Broker Actually Better?

The Philosophy Divide

Public and Robinhood represent genuinely different visions of retail trading.

Public's pitch: "We don't sell your orders. We charge for premium features instead." They removed PFOF in 2021, accepting lower revenue to offer better execution. They also added bonds and alternative investments, positioning themselves as a multi-asset platform.

Robinhood's pitch: "Everything should be free and simple." They make ~70% of revenue from PFOF and don't apologize for it. They've doubled down on simplicity while adding features like the 3% IRA match.

Where Public Wins

The Lowest Margin Rate in the Industry

Public's 4.9% margin rate is the lowest you'll find anywhere. Compare:

• Public: 4.9%
• Robinhood Gold: 5.75%
• Interactive Brokers: 5.83%
• Fidelity: 10.575%

On a $50,000 margin balance, Public saves you $425/year versus Robinhood and nearly $3,000/year versus Fidelity.

No Payment for Order Flow

Public routes orders to exchanges rather than selling them to market makers. This means potentially better execution—especially on larger orders. For small trades, the difference is minimal. For $10,000+ orders, the pennies per share add up.

Options With Rebates

Public's options trading is commission-free like Robinhood's, but they go further: they share rebates from exchanges with customers. You might actually get paid a few cents per contract on certain orders.

More Asset Classes

Public offers:

• Individual bonds and Treasury bills
• Alternative investments (art, collectibles via partners)
• Crypto with secure custody

Robinhood is limited to stocks, ETFs, options, and crypto. No bond ladder at Robinhood.

Where Robinhood Wins

The 3% IRA Match

This is Robinhood's killer feature. With Gold ($5/month), you get 3% matching on IRA contributions. On $7,000, that's $210 in free money every year. Public only matches 1%—and only on transfers, not contributions.

For retirement investors, the math strongly favors Robinhood.

Better Mobile Experience

Robinhood's app is still the gold standard for simplicity. It's beautiful, intuitive, and fast. Public's app is good but not quite as polished. If you trade primarily from your phone, Robinhood's UX is superior.

More Crypto

Robinhood supports 30+ cryptocurrencies versus Public's 25+. Both are solid for crypto trading alongside stocks, but Robinhood has a slight edge in selection.

24-Hour Trading

Robinhood offers 24/5 trading on select securities. Public's extended hours (8am-8pm ET) are more limited.

The Transfer Match Showdown

Both offer transfer bonuses, but they're structured differently:

• Public: 1% match on transfers, uncapped
• Robinhood: Up to $150 transfer fee rebate

If you're transferring $15,000 or more, Public's 1% ($150+) beats Robinhood. For smaller transfers, they're similar. For $100,000+ transfers, Public's uncapped 1% ($1,000) wins big.

The PFOF Reality Check

Public makes a big deal about rejecting PFOF. But does it actually matter?

For casual investors: Probably not much. The execution difference on a 100-share order is pennies.

For active traders: Yes, especially on larger orders. Studies suggest PFOF execution costs investors $0.01-0.02 per share versus exchange execution.

On principle: If you believe brokers shouldn't profit from selling your orders, Public aligns with that view. If you're purely pragmatic, Robinhood's 3% IRA match might be worth more than any execution savings.

Who Should Choose Public?

• Margin traders (4.9% rate is unbeatable)
• Those who care about execution quality
• Multi-asset investors wanting bonds + alternatives
• Large account transfers ($50K+ for the 1% match)
• Investors who object to PFOF on principle

Who Should Choose Robinhood?

• IRA investors (3% match is huge)
• Mobile-first traders wanting the best app
• Options traders (both are free, Robinhood is simpler)
• Crypto enthusiasts wanting variety
• Those who prioritize simplicity above all

The Verdict

This is closer than most comparisons. Both are good brokers with different strengths.

Choose Public if: You trade on margin (the 4.9% rate is industry-leading), care about execution quality, or want access to bonds and alternatives.

Choose Robinhood if: You're opening an IRA (the 3% match is unbeatable), want the simplest possible mobile experience, or prioritize app design over philosophical concerns about PFOF.

Consider using both: Robinhood IRA for the match, Public for taxable margin trading. Many investors find this combination captures the best of each.