Robinhood is a brokerage firm that offers commission-free stock, crypto, and ETF trades. The company was founded in 2013 by Stanford Graduate School of Business classmates Vlad Tenev and Baiju Bhatt. This company is backed by well-known investors like Google Ventures and Andreessen Horowitz.
The primary purpose of Robinhood is to make investing more accessible by providing an online service that allows investors to invest in the stock market without the need for minimum account balances or high transaction fees. In addition, Robinhood offers free access to its core financial products through a mobile app and a web interface. However, recently Robinhood has faced scrutiny over its influence on meme stocks. Investors bought meme stocks based on hype. Many people believe that this has led to more than one million users opening brokerage accounts with just a $0 balance requirement, making them susceptible to bad investments and scams. It also does not provide an option for mutual fund investment. Also, their role in GameStop came under heavy criticism. Here is a curated list of Top applications capable of replacing Robin Hood with its pros, cons, features, and key statistics.
Best Robinhood Alternatives: Top Competitors
| Name | Deposit and withdrawal methods | Minimum Balance | Investment options | Link |
|---|---|---|---|---|
| Webull | Wire Transfer and Bank Transfer. | No minimum balance. | US market stocks, options, ADRs, ETFs, and specific cryptocurrencies. | Learn More |
| M1 Finance | Bank Deposit, Credit/Debit Card Visa and Mastercard and P2P Trading | $10. | ETFs or individual stocks) | Learn More |
| Public | Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading | No minimum balance. | Stocks and ETFs | Learn More |
| TD Ameritrade | Electronic bank transfer, Wire Transfer, Deposit via mobile, etc. | No minimum balance is needed. | Stocks, Options, ETFs, Mutual Fund, futures, Forex, Margin Trading, Crypto Trading, IPO, etc. | Learn More |
| CoinBase | Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading | $2 per month | Crypto | Learn More |
1) Webull
Intermediate-level investors but still actively involved in stock market and options trading
Webull is a relatively newer investment platform designed for new and seasoned investors. It has no fees—including commissions – except some minor wire transfers and SEC fees.
This online brokerage firm puts heavy emphasis on the idea that innovative technology has the potential to improve your returns in the stock and cryptocurrency market. It also provides a practice account that lets you make trades with fake money.
Features:
- It provides lots of tools for analysis.
- Commission-Free Trading.
- It offers an option to buy and sell a long list of cryptocurrencies.
- Provide an option to access stocks listed on major exchanges, options, and ETFs.
- Does not require any minimum balance.
- Deposits & Withdrawals:
• Wire Transfer- Deposit- $25 and Withdrawal – $45
• ACH deposit and withdrawals no fees - Investment options: US market stocks, options, ADRs, and ETFs, and specific cryptocurrencies.
- Minimum Balance: You don’t need to maintain a minimum balance.
- Support: Chat, email, and Phone.
Pros
- OPRA Real-Time Data support
- Over 50 analytic tools
- Enables fractional share trading
- Extended trading hours
- Offers advanced Analytics and Market Data at No Additional Cost.
Cons
- Not offer managed Investment Options
- Doesn’t Allow Direct Bond Purchases
2) M1 Finance
Don’t want to take an active role in portfolio management
M1 Finance is a cost-free investment service and a strong competitor of Robinhood. With the M1 Finance investment app, you can get both traditional investment services and receive professional investment guidance. It also provides a quick way to access your money and transfer the money seamlessly between investments.
Features:
- This alternative to Robinhood offers 2% Loans Through M1 Borrow.
- You can earn 33x the national average APY for a checking account.
- Earn stock back from spending.
- It is one of the best alternatives of Robinhood, allowing you to purchase fractional shares of stock.
- It allows you to send physical checks without ever touching a pen.
- A hybrid between self-directed and robot-advisor.
- Supported platforms: iOS and Android.
- Fees: $125 per month.
- Deposits & Withdrawals Methods: Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading
- Investment options: M1 automates the building and maintenance of your custom investment portfolio. (ETFs or individual stocks)
- Minimum Balance: You cannot withdraw or deposit less than $10.
- Investment types available: Stocks, ETFs.
Pros
- Using cutting edge “pie” system to explain the details of all the investment possibilities totally
- Allows you to borrow money at 2-3.5% interest
- You can transfer money seamlessly between investments
- It helps you to automate your investment.
Cons
- Not suitable for day traders.
- Slightly higher minimum Balance
Link: https://m1.com/
3) Public
Looking for social trading features.
Public.com is a stock and ETF trading app founded in 2017. This app uses a third party, Apex Clearing, to handle the background administrative stuff of running public user accounts. Public allows you to purchase a fractional share.
It is a trading app like robin hood that allows you to follow specific companies. This investment app makes your portfolio public to other users and gives you the ability to browse others’ portfolios.
Features:
- Free investment platform
- Social trading features
- You can trade cryptocurrencies
- It is one of the best apps like Robinhood that Never charge any trading fees or commissions
- Fees: Free stock/ETF trades
- Deposits & Withdrawals Methods: Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading
- Investment options: Stocks and ETFs
- Minimum Balance: No minimum balance
- Support: Phone and Live Chat.
Pros
- It helps you to keep track of other users and their investment strategies.
- Instead of entering orders for a fixed number of shares, you can buy fractional shares.
- You can also gift fractional shares to other investors.
- Offers a $10 bonus for signing up and making an initial deposit.
Cons
- Not as suited to advanced traders.
- The public doesn’t offer a wide range of asset types
Link: https://public.com/
4) TD AmeriTrade
All-around, balanced investors, and optional Trading.
TD Ameritrade is one of the best replacements of Robinhood, and the platform is easy to navigate and works perfectly on both the app and desktop/laptop computers. This brokerage firm does stock research and offers numerous investment opportunities.
This trading app, like robin hood, helps you become a better investor with its multitude of available tools. Depending upon your needs, you can create several watchlists and set custom alerts to remain updated with the trends.
Features:
- Great for new or experienced investors.
- Comprehensive trading options.
- No commissions.
- Interactive courses and webcasts.
- Supported platforms: iPhone App, Apple Watch, Android App.
- Fees: $0.00 commissions.
- Deposits & Withdrawals Methods: Electronic bank transfer, Wire Transfer, Deposit via mobile, etc.
- Investment options: Stocks, Options, ETFs, Mutual Fund, futures, Forex, Margin Trading, Crypto Trading, IPO, etc.
- Minimum Balance: platform fees and no trade minimums.
- Support: Phone: 24/7; Text: 24/7; Live Chat: 24/7; Email
Pros
- TD Ameritrade offers tax-loss harvesting, which can help you minimize portfolio losses.
- Provides detailed research reports and Education
- Offers high-end protection
- It offers both options and future Trading. Robinhood offers options but not futures.
- You have a team of financial advisors ready to assist its customers through their market journey.
Cons
- Derivatives trading more costly than other Robinhood competitors
- Sometimes the app freezes
Link: https://www.tdameritrade.com/
5) CoinBase
This strong replacement of Robinhood does more than allowing you to invest in crypto. Signing up for a Coinbase account allows you to get a Coinbase Visa debit card to spend crypto anywhere.
A Robinhood competitor offers a handy dashboard that allows you to keep an eye on your assets’ real-time prices and value. This crypto trading exchange platform keeps you fully informed, making sure you can make the most of each coveted opportunity.
Features:
- Manage your portfolio, make recurring buys, and have vault protection to store your funds
- Earn $5 in bitcoin for getting started on Coinbase
- Over 56m verified users operate on the platform
- It allows you to securely store a wide range of digital assets in offline storage
- It provides a safe way to buy Bitcoin online and schedule your crypto trading at any time of the day
- This crypto exchange stores your funds in a vault for safety purposes
- Deposits & Withdrawals Methods: Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading
- Investment options: Crypto
- Minimum Balance: $2 per month.
- Countries Supported: Bahamas, Bermuda, Canada, Mexico, Panama, Trinidad and Tobago, United States, etc.
- Support: Chat and Email.
Pros
- Supports several assets
- It offers access to 100 cryptocurrencies.
- Offers high-end protection
- You can generate spending summaries, transaction receipts, and instant notifications
- Your cryptocurrency is insured in the event website is hacked.
Cons
- Higher fees than other cryptocurrency exchanges.
- Not accessible to reach customer support.
6) Acorns
Long-term investors
Acorns is a micro-investing platform that’s gained quite a bit of steam over the past few years. This Robinhood competitor uses the hands-off approach to investing. Therefore, you don’t have to spend time researching, building, and rebalancing your portfolio.
Features:
- It helps you to expand your earnings potential in financial markets.
- You can start investing with just $5, making the app perfect for new and small investors.
- Like Robinhood, this app improves your financial stability through better spending habits.
- Recurring Investments and One-Time Investments
- Supported platforms: Android and iOS.
- Fees: $3 a month
- Deposits & Withdrawals Methods: Wire Transfer and Bank Transfer.
- Investment options: Stocks, ETFs, bonds
- Minimum Balance: $0 to open, but $5 requirement to invest
- Support: Chat and Email.
Pros
- You can transfer funds to your various Acorns accounts
- Acorns Checking gives you a free checking account to go with your investment account.
- It helps you save money by spending money, which is probably the easiest way to save money in any form.
Cons
- Not an ideal option if you want to pick your stocks or take part in day trading.
Link: https://www.acorns.com/
7) Sofi Invest
IPO Investing
SoFi is an online discount broker that launched in 2011. The company offers a compelling investing experience alongside a top-notch personal finance tool. It is one of the best alternatives to Robinhood also offers student loan refinancing, insurance, a cash management account (with a debit card), personal loans, and more.
A trading app like robin hood enables you to begin trading with as little as $1 with SoFi Invest. You can also trade stocks and ETFs with no commission, and it’s free of charge.
Features:
- Trade stocks and ETFs with no commissions or participate in upcoming IPOs before trading on the public market.
- It offers an option for personal loans to student loans.
- Invest in Stock Bits (fractional shares.
- It helps you to automated investing options for a hands-off approach.
- Fees: $0
- Deposits & Withdrawals Methods: Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading
- Investment options: Free stock/ETF trades
- Minimum Balance: Does not charge commissions on trades or require investors to maintain any minimum account balance.
- Support: Phone support only.
Pros
- Offers an option to purchase shares based on dollar amounts rather than share counts
- It offers fast Trading, cryptocurrency support
- Emphasis on commission-free Trading and simplicity
Cons
- Limited order types
- Currently only available to US residents.
Link: https://www.sofi.com/invest/
8) E*Trade
Options traders
E*TRADE is a highly advanced trading platform out there. It enables you to trade stocks, ETFs, options, and mutual funds. You’ll have the ability to do extensive investment research if you want to or use an ETF screener to find a match for your investment needs.
It is a trading app like Robinhood, ideally suited for advanced traders, active day traders, derivatives traders, and retirement savings. This is an app similar to Robinhood, which is suited to small investors who prefer to buy-and-hold and execute only a few trades per year.
Features:
- $0 commission for online US-listed stock, ETF, and options trades.
- Allows Trading in 77 international markets.
- No minimum account balances.
- 250 fee-free ETFs.
- Hybrid investment options.
- Provide access to E*TRADE bank.
- Supported platforms: Web-Based, iPhone App, Apple Watch, Android App.
- Fees: $0
- Deposits & Withdrawals Methods: Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading
- Investment options: Stocks, OTC/Penny Stocks, ETFs, Mutual Funds, Bonds, Options, Forex, etc.
- Minimum Balance: No account minimum
- Support: 24/7 live chat and Email Support.
Pros
- Opening an account is easy, and it just takes a couple of minutes.
- It lets you trade mutual funds.
- Provide tax-efficient accounts
- E*TRADE app allows you access to more complex trading strategies, as well as the ability to trade futures.
Cons
- Only US markets, no forex
- Slow live chat support.
Link: https://us.etrade.com/home
9) Stash
Anyone who needs banking and investment accounts
Stash is undoubtedly one of the best for beginners because you’ll get the investment app, banking options, as well as a debit card. So, everything is included in a single app, making managing your finances a breeze.
Features:
- Full banking solutions.
- Offers automated options.
- Helpful guidance.
- Offers fractional shares investments.
- It helps you with personal finance management.
- Fees: Acorns Personal: $3/month & Acorns Family: $5/month.
- Deposits & Withdrawals Methods: Bank Deposit, Credit/Debit Card: Visa and Mastercard
- Investment options: Stocks and ETFs
- Minimum Balance: No minimum balance on investment
- Support: Phone, email, and chat Support
Pros
- You can buy shares based on dollar amounts they wish to invest.
- Investors can earn stock back on their purchases
- You can set up investment accounts for your children.
- It offers personal banking services, including checking and savings accounts
Cons
- Earn stock back from spending
- IRAs are not automatically managed
Link: https://www.stash.com/
10) Betterment
Tax-loss harvesting purpose.
Betterment is one of the best Robo-advisor apps for anyone who doesn’t want to pick their stock but would rather have their portfolio managed by professionals. It is one of the best alternatives to Robinhood that also offers a checking and savings account (called their Cash account) at no cost.
Features:
- Offers complete investment management.
- Tax-loss harvesting is offered on taxable accounts.
- Provides and climate-conscious options, low-risk options socially.
- It allows you to make deposits at will or set up monthly transfers into the account.
- Fees: Betterment charges a 0.25% management fee
- Deposits & Withdrawals Methods: Electronic transfers and wire transfers
- Investment options: ETFs
- Minimum Balance: You can keep Betterment accounts with a $0 balance.
- Support: You can contact them via phone or email.
Pros
- Betterment offers checking and savings account
- You can keep the asset allocation the company sets for you based on your goals
- It allows you to set up a cash reserve account
- It offers personal banking services, including checking and savings accounts
Cons
- You can’t pick the individual stocks.
- Betterment charges a 0.25% management fee
Link: https://www.betterment.com/
What to Look for in a Robinhood Alternative?
Here are some critical steps to follow while looking for the best Robinhood alternative.
Step 1) Fees:
Your online brokerage may charge different types of fees, which can vary significantly from broker to broker. Robinhood is one of the cheaper brokers. Therefore if this is an essential consideration for you, make sure you select a similarly low-cost Robinhood alternative.
Step 2) Account opening:
Some brokers require at least $10,000 to be invested while opening an account, while others don’t set a minimum first-time deposit. It would be best to consider the time taken to open the account.
Step 3) Deposit/withdrawal:
The number of ways to deposit or withdraw money to or from your account matters exceptionally. For example, while you cannot deposit with your credit card at Robinhood, some alternatives might allow you to do that.
Step 4) Web trading platform
While online brokers are usually available on mobile apps, tablet apps, or desktop software, most people use them through their web platform in a browser. A user-friendly trading web app offers many different resources to increase your trading comfort significantly.
Step 5) Markets and products
Many people have specific products they would like to invest in. Knowing whether stocks, forex, mutual funds, and other products.
FAQs
Following are the Best Robinhood Alternatives:
- Webull
- M1 Finance
- Public
- TD AmeriTrade
- CoinBase
- Acorns
- Sofi Invest
- E*Trade
- Stash
Here are some reasons why you should consider opening an account at some of above given Robin hood alternatives:
- Robinhood lacks a large number of trading analysis tools, and it only allows you to create watchlists and view real-time market data.
- It also offers very little in the way of trading education.
- Its candlestick charting options are not easy to view on the mobile screen. As its mobile trading app uses the standard green and red candle scheme like other brokers, shadows are pretty difficult to see on Robinhood’s white mobile background. Moreover, you can’t adjust candle periods to minutes or hours like most other platforms.
- Robinhood only offers individual taxable accounts, and you cannot open an IRA or solo 401(k) through Robinhood.
- You cannot purchase mutual funds through Robinhood’s platform.
Best Robinhood Competitors & Alternatives
| Name | Deposit and withdrawal methods | Minimum Balance | Investment options | Link |
|---|---|---|---|---|
| Webull | Wire Transfer and Bank Transfer. | No minimum balance. | US market stocks, options, ADRs, ETFs, and specific cryptocurrencies. | Learn More |
| M1 Finance | Bank Deposit, Credit/Debit Card Visa and Mastercard and P2P Trading | $10. | ETFs or individual stocks) | Learn More |
| Public | Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading | No minimum balance. | Stocks and ETFs | Learn More |
| TD Ameritrade | Electronic bank transfer, Wire Transfer, Deposit via mobile, etc. | No minimum balance is needed. | Stocks, Options, ETFs, Mutual Fund, futures, Forex, Margin Trading, Crypto Trading, IPO, etc. | Learn More |
| CoinBase | Bank Deposit, Credit/Debit Card: Visa and Mastercard and P2P Trading | $2 per month | Crypto | Learn More |
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As a seasoned expert in the field of financial technology and investment platforms, I can provide comprehensive insights into the information presented in the article about Robinhood and its alternatives. My extensive knowledge in this domain is derived from years of studying and analyzing various brokerage firms, investment apps, and trading platforms.
Let's break down the key concepts and information mentioned in the article:
1. Robinhood Overview:
- Robinhood is a brokerage firm founded in 2013 by Vlad Tenev and Baiju Bhatt.
- It offers commission-free trading for stocks, crypto, and ETFs.
- Backed by prominent investors like Google Ventures and Andreessen Horowitz.
- Aims to make investing more accessible with no minimum account balances or high transaction fees.
- Faced scrutiny for its influence on meme stocks and criticism for its role in the GameStop saga.
2. Top Alternatives to Robinhood:
a. Webull:
- Targets intermediate-level investors.
- Emphasizes innovative technology for better returns.
- Offers commission-free trading and access to a variety of financial products.
- Supports trading in US market stocks, options, ADRs, ETFs, and specific cryptocurrencies.
-
Provides tools for analysis and a practice account.
b. M1 Finance:
- Suitable for those not wanting an active role in portfolio management.
- Offers cost-free investment services.
- Provides professional investment guidance.
- Allows fractional share trading and automated investing.
-
Supports bank deposits, credit/debit card transactions, and P2P trading.
c. Public:
- Known for social trading features.
- Enables the purchase of fractional shares.
- Allows the portfolio to be public, fostering a community of investors.
- Supports trading in stocks and ETFs.
-
No minimum balance requirement.
d. TD Ameritrade:
- Suitable for all-around, balanced investors.
- Comprehensive trading options including stocks, options, ETFs, mutual funds, etc.
- Offers educational resources and research reports.
-
Provides 24/7 support through various channels.
e. Coinbase:
- Strong replacement for crypto trading.
- Offers a Visa debit card for spending crypto.
- Supports a wide range of digital assets.
- Provides real-time portfolio tracking.
- Charges a monthly fee for certain services.
3. Other Alternatives:
- Acorns: Micro-investing platform for long-term investors.
- SoFi Invest: Known for IPO investing and a range of financial services.
- E*Trade: Advanced platform for options traders and active day traders.
- Stash: Combines banking and investment accounts for beginners.
- Betterment: Robo-advisor with tax-loss harvesting features.
4. Considerations for Choosing Alternatives:
- Fees: Compare fee structures.
- Account opening: Check minimum deposit requirements and account opening processes.
- Deposit/withdrawal methods: Evaluate the convenience of money transfer methods.
- Web trading platform: Assess the usability of the web trading platform.
- Markets and products: Consider the availability of specific investment products.
5. FAQs:
- Provides a quick summary of the best Robinhood alternatives.
- Outlines reasons to consider alternatives, such as lack of trading tools and education on Robinhood.
In conclusion, the article offers a comprehensive guide for individuals seeking alternatives to Robinhood, considering factors like fees, account opening processes, and available investment options. The curated list of alternatives is well-researched and covers a range of investor preferences and needs.
