A stock, cryptocurrency, and ETF brokerage, Robinhood, provides transactions of all this without a fee. Vlad Tenev and Baiju Bhatt, students at the Stanford Graduate School of Business, started Robinhood as a startup in 2013. Many reputable investors, including Google Ventures and Andreessen Horowitz, support this business. The main goal of Robinhood is to increase accessibility to investing by offering a web-based service that enables users to make stock market investments without having to maintain a minimum account balance or pay high transaction costs. Also, Robinhood provides both a web interface and a mobile app for free access to its primary financial products.
Robinhood, meanwhile, has recently been under fire for its impact on meme stocks. Based on publicity, investors acquired meme stocks. Many think this has resulted in over a million users creating brokerage accounts with just a $0 minimum balance requirement, making them vulnerable to risky investments and fraud. Additionally, it does not provide the option of investing in mutual funds. They also faced harsh criticism for their involvement with GameStop. Below, we discuss the top alternatives to Robinhood.
1. Charles Schwab
Major stockbroker Charles Schwab has tried staying modern with fintech, updating its mobile app, and providing fractional shares. Charles Schwab is a better alternative for Robinhood since you can manage your finances with a single login. In addition, Charles Schwab provides no-commission trading in stocks and ETFs, and no balance is needed to open an account and begin investing.
Like Fidelity, Charles Schwab levies a $0.65 per contract fee for options, and the site does not support trading in cryptocurrencies. Investor education facilities provided by Charles Schwab, which aid customers in learning more about both general investing and particular equities, help the company stand out. The business provides access to conventional financial advisors and 24/7 customer service choices.
Although it may not appear like younger investors are thinking about retirement, Charles Schwab is the market leader in that area. If you're considering life after a job, as Robinhood provides a taxable brokerage account, you can try Charles Schwab for the range of individual retirement accounts.
Betterment is a unique, ground-breaking startup at the forefront of Robo-financial advice and consultations without management fees. Their platform is great for those who prefer a more passive approach.
When you deposit money into your account, Betterment will divide your money across assets that best fit your objectives and make necessary adjustments when the market changes. Users can choose financial objectives in a predetermined time frame when creating a new account (with no required minimum beginning deposit). These objectives include investing in general, retirement, and a safety net.
Users of Robinhood might be shocked to learn that Betterment does not permit trades for individual stocks. However, they do provide checking accounts and high-yield savings accounts. Betterment lets users link other bank accounts to a more thorough financial analysis.
One of the most recent brokerage services on this list, Moomoo, launched in 2018. Moomoo provides many of the same features as Robinhood, including fee-free stock, ETF trades, and no required initial deposit. But thus far, the business has shown itself to be dependable, quick, and a competitive alternative to Robinhood.
However, the broker shines in providing community forums, charting tools, and FOREX trading (foreign exchange markets). Additionally, Moomoo offers later trading hours, which attracts night traders. Customers will only have access to email support starting in January 2022, which may be annoying for certain customers. Moomoo doesn't support crypto currency transactions either. Overall, the company did a fantastic job developing a service that can compete with Robin Hood's functionality and features.
E*TRADE has established itself as one of the most dependable online brokers, with more than 7 million investors. Users of this site may access foreign currency markets, which is one way it differs from Robinhood. In addition, E*TRADE provides financial consultants to assist you in managing your goals and other investment alternatives, including CDs and ETFs.
E*TRADE regrettably does not accept purchases of fractional shares. Many potential customers who wish to make lesser financial investments may be disappointed by this. E*TRADE, on the other hand, E*TRADE enables business owners to set up investing accounts for their companies. This is a special function that is only sometimes found on broker platforms.
Fidelity has an established track record of offering trustworthy services. Users may buy fractional stock shares commission-free, similar to Robinhood. Excellent research tools with extensive performance archives and graphs are available.
Additionally, Fidelity provides savings and retirement account options. Fidelity may also examine your financial goals, compare them to your present investments, and offer helpful advice on keeping your finances thanks to cutting-edge technology. This firm is a great option for investors who prefer purchasing mutual funds and hedge funds. The customer service and choice of high-quality investment possibilities make up for the mobile app's potential for user resistance.
The Public is special as it serves as both a brokerage and a social networking platform for traders. You may use this combination to see what other people are investing in while selecting stocks. Both account minimums and transaction fees are absent. Additionally, Public's interface, which is extremely similar to Robinhood's, will appeal to existing and former customers of Robinhood.
Although Public offers fewer analytical tools than other brokerages, it is still a great option for novice and casual investors. Like Robinhood, users may trade ETFs and buy individual stocks (fractional shares are provided). To assist you in achieving your financial objectives, Public also provides a savings account.
7. SoFi Active Investing
SoFi is a full-service financial investing platform that, like Robinhood, provides fractional shares and sign-up incentives. They also provide a range of banking alternatives, loans, and credit cards and help with money management. Impressively, the company analyses the margin rates for their loans. This gives its clients the power to choose wisely when borrowing money.
It is easy to utilize the mobile SoFi Active Investing app. For this simplicity, some users could discover that the broker forgoes in-depth research and analytical capabilities. However, a free online appointment with a financial counselor makes up for this deficiency. The 1.25% charge deducted from each bitcoin purchase may also irritate cryptocurrency dealers. In comparison, commission-free crypto currency trading is offered by Robinhood.
Webull offers a seamless and pleasurable trading experience with one of the best mobile trading applications. This broker site soon became well-known as a Robinhood substitute after entering the market in 2017. Webull's ability to trade before and after the markets open is one of its key features. Additionally, starting in January 2022, Webull added fractional share trading with a $5 minimum on their platform.
Users may buy well-known cryptocurrencies through this broker site, similar to Robinhood. Following their registration, new users can receive 2-4 free stocks. Additionally, the corporation provides Robinhood with less generous sign-up bonuses. However, Webull's dissatisfaction may be shared by investors who were dismayed when Robinhood halted purchases of companies like Gamestop (GME) in 2020. Webull has previously prohibited GME trading with Robinhood and banned transactions for specific stocks.
Tradier is designed for experienced traders who are at ease with self-directed trading and have a lot of investment expertise. Charles Schwab bought the trader; however, as of January 2022, they are still a separate business. Bonds, equities, mutual funds, ETFs, and more are available through Tradier. Different account kinds have monthly fees: the most simple (and popular) account has a $10 monthly fee, while the most advanced costs $85.
TradeStation attracts novice and experienced traders because of its cutting-edge research tools and commission-free trading. Stocks, options, futures, ETFs, and cryptocurrencies are all available on the site. Additionally, one of the top mobile applications in the market may be used to manage these assets. Dynamic graphs and charts are included in the app and the online application.
TradeStation outperforms Robinhood in order execution: While transactions for Robinhood customers sometimes take a while to complete, TradeStation offers blazing-fast order routing to fulfil orders for day traders as much as possible. TradeStation subscription options come in a variety. Please do your homework on each of these before committing to any of them. Additionally, the lack of transaction-free mutual funds on the site may deter retired investors.
Accounts that need to maintain the required minimum balance or level of activity are charged $50 by TradeStation. Users should also be advised that there is a $35 yearly account cost.
11. M1 Finance
M1 Finance shines for investors that appreciate long-term investment or want a more hands-off approach. Users may let the platform do most of the job by utilising a wide range of intelligent tools to automate investments. The pie-chart investing scheme is one of the most well-liked elements of the M1 trading account.
You will have the chance to create varied portfolios when you open your investing account. Pick the investments you want to make regularly and decide on a percentage amount for each. Then, when you add money to the app, M1 will distribute the stated percentage of your funds to each fund in your portfolio.
There are no transaction fees with M1. M1 makes it simple to update your accounts on the move with its user-friendly iOS and Android mobile applications. The extensive customisation possibilities for investments could overwhelm some less seasoned traders. Other inexperienced investors will adore customizing their purchases and making them automatically. In any event, M1 is a great Robinhood substitute. Custodial and IRA accounts are also available.
Vanguard is one of the biggest brokerage platforms available, much like a few other choices on this list. To meet the demands of every investor, they provide a selection of trading, savings, and retirement accounts. Bonds and CDs go under this. Vanguard also excels in its mutual and index fund products, emphasizing long-term investors strongly. Users can avoid paying commission fees to acquire their 3,300+ funds. Do your homework, though, since many Vanguard funds need investing minimum contributions between $1,000 and $3,000.
Vanguard has the drawback of not offering fractional shares; if you wish to buy a stock, be ready to acquire at least one complete share before making a decision. All account types can utilize for free, too. There are a few research tools that should also be kept in mind.
13. Interactive Brokers
The list of the complete investing platforms is headed by Interactive Brokers (IBKR). Clients may transact in 150 markets from a single integrated account for stocks, options, futures, Forex, cryptocurrencies, bonds, and funds. The Impact Dashboard and app, which allows you to evaluate assets via a socially responsible (SRI) lens, will please sustainable investors. The downloadable Trader Workstation (TWS) software caters to experienced, active investors and professional traders who require advanced technical and fundamental trading tools and in-depth analysis.
Sometimes it might be challenging to process all of the information on IBKR. No other company can compare the variety of assets, research reports, market access, tools, calculators, and educational resources that Interactive Brokers offers. Both a blessing and a burden come with this variety of goods and services. However, consumers can test out this complete investment broker thanks to the free paper trading and the 3-month trial.
14. TD Ameritrade
With a strong online application, a smartphone app, and the data-driven day trading program Thinkorswim, TD Ameritrade provides tools to accommodate both beginner and experienced traders. This broker's variety of free materials is one of its benefits. Users may access videos, articles, classes, and events to learn about investment techniques, accounts, and even particular companies. Transactions are free of commission. TD Ameritrade and Robinhood differ from one another in this regard.
Ameritrade's lack of fractional shares may turn some investors off. Excellent customer service is offered by the broker, though. 24/7 text, email, and phone support are provided by helpful staff to consumers. TD Ameritrade's PaperMoney investment simulator is one of its distinctive features. $100,000 in virtual currency is added to new accounts. With this money, investors may test their investment ideas without taking any risks before investing actual money. For inexperienced traders, in particular, this is helpful.
The broker's services incorporate social interaction, and eToro is comparable to Public. After registering for an account, users of eToro can choose to duplicate the trades of well-known investors who also use the platform and follow their results. The business also offers a special analytical tool to let traders know how much risk is acceptable for a certain portfolio. Additionally, eToro provides over 35 different cryptocurrencies.
Like TD Ameritrade, eToro gives new users $100,000 in virtual money to test out financial techniques. This feature makes excellent instructional resources available, and the mobile app is also simple. Customer service is one demerit of this broker. Open a claim online and wait for an associate's assistance if you need assistance with your account. There is no telephone option for communication.
Stash markets itself as an approachable trading platform for novice investors. The exchange provides distinctive, pre-assembled stock portfolios created to meet a variety of purposes (both long-term and short-term). Users appreciate Stash's Robo-advising service as well. This tool offers useful information to assist novice investors in making prudent financial decisions and comprehending their allocations.
Customers who purchase the basic package get access to trading services. The associated costs are something traders thinking about using this service should be aware of. Stash offers three alternative monthly payment options ranging from $1 to $9. Customers can create tax-advantaged retirement accounts with Stash, like an IRA, for a $3 fee. The $9 package, which includes two custodial accounts and a free debit card, is designed for families. Traders considering Stash should ensure they get the finest strategy for their requirements.
Distinctively, Stockpile concentrates on educating aspiring stock market investors. The broker even allows customers to buy gift cards for their family, friends, and loved ones. These cards are available for purchase for certain stocks or may be loaded with money and used on any stocks the buyer chooses. Customers value the capacity to get kids interested in trading with these cards.
For more professional traders, Stockpile provides a restricted feature set. For instance, they don't provide IRA accounts, options, or fractional shares. The broker's teaching materials are excellent, but advanced research tools still need development.
Furthermore, no deals are carried out by Stockpile in real-time. Instead, they do all of their business at the same hour each day. Therefore, the company's services are most appropriate for attracting buy-and-hold investors and giving young people presents.
Firstrade provides a wide selection of investing alternatives, ranging from mutual funds and ETFs to CDs and bonds. On its platform, Firstrade charges some of the least in the business. This broker also gives new clients free shares, similar to Robinhood.
Firstrade distinguishes itself by enabling account opening and trading for consumers outside the US, UK, and Australia. The smartphone app from Firstrade is simple and intuitive. The firm is also dedicated to teaching novice and seasoned traders by providing webinars and other tools. They only provide taxable accounts without choices, such as the well-known Roth IRA, even though they do not enable cryptocurrencies on their site as of January 2022.
One of the most distinctive investment tools on this list, Acorns provides an automated experience. Acorns will round up your purchases to the next dollar and invest the change into different funds by connecting your bank card to your investing account. The management of these funds stabilizes and expands your assets.
Of course, consumers are allowed to add money to Acorns whenever they choose. Depending on your plan, there is a minor monthly cost ($3-$5). Also, checking and retirement accounts are accessible (one account even offers a metal debit card). Users will have the option to select from several pre-built portfolios when setting up a new account. Acorns also provide automated rebalancing to stay up with changes in the market.
There are two membership plans as of 2022. The first option is a $3 monthly basic plan for people. Users can create custodial accounts using the $5 family plan option. Acorns provide a job-hunting service as one of its distinctive features. To advertise job vacancies, internships, and other possibilities to make money, the organisation works with Zip Recruiter. Although the sorts of investments that clients may make are restricted, Acorns differs from Robinhood because of these exclusive services.
Gemini focuses on promoting simple stock trading and giving you complete control over cryptocurrencies, in contrast to Robinhood, which does not let you access to receive or trade cryptocurrency coins. It means you have more control over the digital assets you buy thanks to the platform, and you may send or receive currencies effortlessly from/into your Gemini wallet. Isn't it fantastic?
The software, available for iOS and Android users, enables trading while on the go. Its strongest feature is the exchange's availability of popular crypto currencies, including bitcoin, ethereum, bitcoin cash, litecoin, and Zcash, for trading and investment.