Grow16 Best Robinhood Alternatives Worth Checking Out In 2021

16 Best Robinhood Alternatives Worth Checking Out In 2021

With the whole GameStop controversy, Robinhood cost a lot of people money by restricting dozens of stocks. Here are the best Robinhood alternatives if you want to make the switch.

Robinhood is a US-based discount broker that was founded by Vladimir Tenev and Baiju Bhatt in 2013. It initially launched as a stock tracker app that lets its users discuss which stocks they should buy. Shortly after its launch, Robinhood got approval to provide brokerage services. What made Robinhood unique, at the time, was that it gave its users commission-free trading.

This meant that anyone who signed up could buy and sell an unlimited amount of stock without being charged. Although its app was simpler than its competitors, the prospect of zero-commission trading earned it 50,000 sign-ups by the end of the first week who started investing. By the next six months, their waiting list had grown to 500,000 sign-ups with 80% of them being between the ages of 18 and 29.

Fast forward to 2021, with the Robinhood IPO coming out soon, it looks like they have everything under control. That is in light of being Robinhood’s role in the GameStop stock spike scrutinized by Congress recently. This is prompting multiple users on Reddit urging users to leave Robinhood.

One recent comment with thousands of upvotes stating:

“Leaving Robinhood is the best thing you can do for yourself in the long term”

In case you’re in this boat, this article can help.

Is there a better app than Robinhood?

Robinhood has gotten a lot of buzz over the past several years. Its commitment to offering zero-commission trading and no minimum account balance has drawn in millions of users. It also has a simple interface that’s easy-to-use for most beginners. What’s more, is that they entice new members by offering free stocks for joining. As an increasing number of brokerages adapt to the market and begin offering the same incentives, it’s time to reevaluate whether there are better alternatives to Robinhood.

For instance, Robinhood has a limited variety of tradable assets. You can only invest in US-Exchange listed stocks and ETFs, options, and a few global exchange stocks. In terms of educational material, Robinhood offers articles best suited for beginners but little else. Other trading platforms often provide videos and webinars in addition to educational articles. The app has also experienced multiple outages during market surges.

Either way, whether or not there’s an app better than Robinhood is partially subjective. It depends on what you’re looking for. We’ve compiled a list of apps like Robinhood so you can decide for yourself.

What are other apps like Robinhood?

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We’ll be looking at sixteen alternatives to Robinhood. We’ll break down what these apps are, whether they charge any fees, and who they’re best for – so keep reading.

1.  M1 Finance

M1 Finance is best for making automated, long-term investments. Similar to Robinhood, M1 Finance allows users to buy fractional shares. This is great for diversifying your portfolio as you can buy multiple stocks and ETFs at your preferred price. It’s a robo-advisor.One of the cooler features the M1 Finance app offers is the choice to construct investment pies.

A Pie is a portfolio that is fragmented into different stocks and ETFs you’d like to invest in. It looks just like a – you guessed it – a pie chart. Once you’ve chosen your assets, select what percentage of your money you’d like to each of them, and the app will automate your investments.

  • Commission Fees: $0.
  • Account Minimum: $0.
  • Who it’s best for: Beginners; hands-off traders

2. eToro

eToro is best-known for its emphasis on social trading. In fact, it prides itself on being the world’s leading social trading platform. It has over 13 million registered users worldwide and offices in Cyprus, Israel, and the United Kingdom. Right off the bat, eToro already has a broad reach. It also gives you the option to trade and invest in numerous assets like stocks, ETFs, cryptocurrency, Forex, and more.

What’s more, the platform is highly transparent. Some apps will let you follow and copy successful traders, but eToro goes a step further. It will show you a users’ gain percentage, portfolio composition, and risk score. You can also purchase CopyPortfolios, which are ready-made investment portfolios.

  • Commission Fees: $0.
  • Account Minimum: $200.
  • Who it’s best for: Beginners

3. Webull

Although Webull was established in 2017, it’s already ranked among the top apps rivaling Robinhood. It gives users a great mobile and desktop interface, free stock upon signing up, and two different brokerage accounts to choose from. Arguably, Webull’s best feature is its in-depth analysis tools.

In partnership with NASDAQ, Webull now offers its clients three months of free Level 2 market data. One of the perks of this offer is that you’ll be able to see the best 30 bids and asks of all stocks listed on NASDAQ. This info gives traders a better view of the total market.

You’re able to trade stocks, ETFs, options, cryptocurrency, and ADRs.

  • Commission Fees: $0.
  • Account Minimum: $0.
  • Who it’s best for: Intermediate – advanced traders

4. Public

Public is a micro-investing app with a twist – it allows for social trading, too. As you deliberate which slice, or fractional stock, to buy, Public lets you see what other users are trading. What’s more is that you can direct message, post on discussion boards, or create group chats in-app.

Public also gives you the option of picking your own stocks to invest in or going with a preloaded theme. A theme is a list of companies that are in the same industry. Themes are particularly helpful if you want to support companies with specific causes (like environmental sustainability) or you want to discover new companies.

  • Commission Fees: $0.
  • Account Minimum: $0.
  • Who it’s best for: Beginners

5. Moomoo

Moomoo is a brokerage app that covers stocks, ETFs, and options. While its tradable assets are limited, it gives you access to Hong Kong, China, and US markets. Remarkably, it also provides users with free in-app currency exchange.

Moomoo’s merits include a free demo and educational content on paper trading, financial analysis, and more.

  • Commission Fees: Moomoo doesn’t charge any commission fees for trading in US markets. It charges a 0.03% commission fee for trading Hong Kong stocks.
  • Account Minimum: $0.
  • Who it’s best for: Active traders

6. SoFi Invest

SoFi, short for “Social Finance,” is a relatively young firm that transitioned into brokering after initially focusing on student loan refinancing. Only available to US residents, SoFi’s services are limited to US stocks, ETFs, and a few cryptocurrencies. Although it has a blog and YouTube channel that provides educational content for new traders, SoFi doesn’t offer any tutorials, demo accounts, or webinars – which is common of its competitors.

  • Commission Fees: SoFi doesn’t charge a commission fee in US stock and ETF trades.
  • Account Minimum: $0.
  • Who it’s best for: Beginners

7. Gatsby Options Trading

Gatsby is an options brokerage app that allows investors to buy or sell ETFs and stock shares with as little as $10 in their account. Similarly to eToro, Gatsby’s platform encourages social trading. By visiting a company’s profile, you’ll be able to see whether other users are buying calls or puts. You’ll also be able to see which companies are being traded and at which times.

Gatsby is strictly a brokerage app, however, and doesn’t offer any investment advice. You can learn more in our Gatsby App Review.

  • Commission Fees: $0.
  • Account Minimum: $10.
  • Who it’s best for: Active traders; Level 2 options traders
IconInfoMin InvestmentTarget returnGo
GatsbyGatsby
TRADING ★★★★★
Gatsby makes trading options simple. Make trades for or against companies and ETFs, with no commissions. Earn points for every trade and redeem them for gift cards.

Min Investment

$500

FEE: 0% Fee: 0%
ZERO Term of Investment: Zero
ALL INVESTORS Open to All Investors

Potential Returns

Varied

Gains Make Money: Gains/Profit
REALIZED PROFIT Payout Frequency: Asset Sold
EASY Liquidity: Easy
More

8. Wealthsimple

It’s easy to see why Wealthsimple has been hailed as one of the world’s leading robo-advisors. During the sign-up process, you are required to fill in a user profile, which is then used to create a personalized investment portfolio for you. Based on this portfolio, Wealthsimple offers you a range of accounts to sign up for and constantly rebalances your portfolio to make sure it’s in-line with your goals.

  • Commission Fees: $0.
  • Account Minimum: $0.
  • Who it’s best for: Everyone

9. Acorns

Acorns is a robo-advisor that automates your investments. Its unique selling point is its Round-Up feature which lets you invest all of your spare change. To do this, you’ll need to link your accounts and cards to your Acorns investment portfolio.

To boot, Acorns also makes it easier for families to invest together. Custodial accounts let parents invest on behalf of their children. When the child reaches the legal age, the account will then become theirs to own and manage. This seems like a pretty good way to teach your kids financial literacy at a young age and maybe even save up for their college tuition at the same time.

  • Commission Fees: Acorns charges a flat monthly rate of $1-$5.
  • Account Minimum: $0.
  • Who it’s best for: Families; hands-off traders

10. Stash

Stash is a robo-advisor that specializes in making it affordable for everyday people to invest in stocks. Stack has 3 tiers of accounts with varying incentives and monthly charges. The Beginner account costs $1, the Growth account costs $3, and the Stash+ account costs $9.

One of its features, Stock-Back rewards, lets users earn shares of stock or ETFs when purchases are made with a Stash debit card. Stash Coach is also an excellent (and fun) game that teaches you financial literacy.

  • Commission Fees: Stash charges a flat monthly rate of $1-$9.
  • Account Minimum: $0.
  • Who it’s best for: Beginners

11. TD Ameritrade

If there’s one thing TD Ameritrade has excelled at, it’s being a platform that meets everyone’s needs. It provides a wealth of educational material, charts, and research analytics to assist beginners. Concurrently, TD Ameritrade’s Thinkorswim platform caters to advanced, active traders.

It also offers a variety of accounts that range from custodial to taxable. As the cherry on top, you can trade almost any security.

  • Commission Fees: $0 on stocks, ETFs, and options.
  • Account Minimum: $0.
  • Who it’s best for: Everyone

12. E*TRADE

With two mobile apps and multiple online platforms, it’s only fitting that E*TRADE was one of the first online brokerages in the US. It lets you trade a diverse set of securities such as common stock, futures, mutual funds, options, and so on. Its platforms host a variety of educational content, liver market commentary, and free real-time quotes.

  • Commission Fees: $0 for online stock, options, and ETF trades.
  • Account Minimum: $0.
  • Who it’s best for: Active traders; beginners; options traders

13. Charles Schwab

Charles Schwab has been in the brokerage game since 1971, giving it time to firmly establish itself and its services. For example, Charles Schwab offers a variety of securities that many of its newer counterparts don’t offer. At the same time, it adapts to new trends – like when it became one of the first brokers to stop charging commissions.

It provides a wealth of support in the form of platform tutorial videos, daily webinars, educational videos, and high quality articles.

  • Commission Fees: $0.
  • Account Minimum: $0.
  • Who it’s best for: Everyone

14. Fidelity

With its Active Trader Pro platform, Fidelity is strongly geared towards self-directed traders. Active Trader Pro ensures you are updated on market movements and allows you to manage up to 50 orders at a go, making it ideal for day trading. If you prefer a managed account, Fidelity caters to you as well. It has a robo-advisor and two other professionally managed accounts.

Add the fact that you can trade both US and international stocks as well as have the option of 16 base currencies, and Fidelity really stands apart from the crowd.

  • Commission Fees: $0 on US stocks and ETFs.
  • Account Minimum: $0.
  • Who it’s best for: Active traders

15. Ally Invest

Ally Invest is linked to one of the oldest companies in the US, Ally Financial Inc. and is listed on the New York Stock Exchange. However, in terms of an online brokerage, it’s only a decade old. It was previously known as TradeKing, which was among the most cost-efficient investment platforms.

Ally Invest offers a wide selection of accounts and securities that cater to both self-directed and managed traders. It leans more on providing investors with the tools needed to stand on their own. Charts, quotes, and graphs among other tools help self-directed traders gauge their profits/losses and plan ahead.

  • Commission Fees: $0 on stocks and ETFs above $2.
  • Account Minimum: $0.
  • Who it’s best for: Self-directed traders

16. Stockpile

Stockpile takes an interesting approach to online brokering. It works by letting users trade stocks and buy gift cards that can be used to purchase fractional shares. It’s a simple platform that doesn’t offer much in the way of analytics, educational material, or a variety of assets.

The gift cards can be either digital or physical. Depending on which type of card you purchase, your total cost will be different. Physical cards are sold in increments of $25 while the starting price for e-cards are $2.99 for the first stock and $0.99 for each additional stock.

  • Commission Fees: Stockpile charges a $0.99 commission fee for trading.
  • Account Minimum: $0.
  • Who it’s best for: Beginners; casual traders; young investors

Take Your Pick

It’s no secret that Robinhood revolutionized the way online brokerage platforms operate. It caused an on-going trend of zero-commission fees that has become the industry standard. However, no app is perfect. Robinhood has presented challenges to investors, and you might be among the investors who’s looking for an alternative to Robinhood. The good news is that there are a host of other apps like Robinhood to choose from, each with their own unique selling points, so take your pick!

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Brian Meiggs
Founder of Smarts, Brian is an entrepreneur and investor who enjoys working out, reading, spending time with his family and friends, playing chess, traveling and creating great content. He’s passionate about helping others make smarter money moves and achieve financial freedom. He uses the free Personal Capital app to manage his cash flow and net worth.

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