The basic difference between the two terms is that Hispanics are people who are from a Spanish origin. They represent the culture of Spain and are Spaniards living in United States. They also speak the Spanish language. On the other hand, Latinos are people from the Latin American origin, which is from the Caribbean, South America and Central America. Latinos speak the language that is derived from Latin.
People from Hispanic background speak Spanish whereas Latinos may speak many languages. As they are people from different countries in Caribbean, South America and North America, they speak the language of the country or region they belong to. For example, People from Brazil residing in United States are Latinos who speak the Portuguese language.
Hispanics represent the culture that was followed by Spanish colonies who ruled the region and are those people who have been living in the United States for a long time so their culture is similar to those of the locals. However, Latinos are generally people who have lived some of their life in their country and have then migrated to the United States so there are major cultural differences. Their culture is similar to the country they were born in. These people are generally known as immigrants in America because there are huge numbers that have travelled from all over South America and Central America to live in the country.