You might want to switch or try something else if you use the Robinhood app.
There are many Robinhood alternative companies today, as new fintech firms strive to make investing easier for everyone.
Which are the best investing apps and platforms?
You’ll find out more about Robinhood and its alternatives, as well as which one might be best for you.
Table of Contents
What is Robin Hood?
Recent Robinhood Issues
Robinhood Alternatives: Why you might want to check them out
Robinhood Alternatives: The Best Alternatives
Is there a better app than Robinhood?
What is Robin Hood?
You can skip the next section if you already use Robinhood.
If you’re reading this article and are considering Robinhood or its alternatives, please stay with me for a few minutes.
Robinhood offers free stock, options, ETF and cryptocurrency trading. There is no minimum account to start.
Robinhood does not currently offer bonds or mutual funds. You can only invest through taxable accounts.
Robinhood, in its early days, was the only platform that offered commission-free trading, a revolutionary concept at the time. Many financial companies now offer this service.
Is Robin Hood really free?
Robinhood was the first to offer commission-free trading. This means that you can keep more of your profits. The company earns money from their data and trading fees and SEC trading subscription. They also sell customer orders to other trading firms.
What is the best way to invest with Robinhood?
Robinhood is a great investment for anyone looking to start day trading, trading options, trading cryptocurrency and ETFs. You can buy fractional shares starting at $1, and all commissions are waived.
Recent Robinhood Issues
The Robinhood app, which is valued at over $7 billion dollars today, has had some issues over the past few years. Many people and investors have sought out Robinhood alternatives.
The Financial Industry Regulatory Authority, or FINRA, fined the company $1.25 Million in 2019.
They did not make sure that users were getting the best possible prices from October 2016 to November 2017. The company has neither confirmed nor denied the claims.
In March 2020, while the stock market was plummeting and everyone could not access their account, Robinhood suddenly went offline.
Robinhood had a difficult time getting everything up and running in a timely fashion (over 24 hour) as well as poor communication.
The market decline has caused many customers to be frustrated, as they were unable to trade or protect their investments on time. More information can be found in the NY Times.
You can find out more here. If that’s your last straw, you may want to look at other Robinhood alternatives.
Robinhood Alternatives: Why you might want to check them out
Robinhood is still a good investment option for many people.
No trading fees, no minimum account (except for margins), no fractional investment, and even high-yield saving are available now.
As you increase your investment, your interests and needs may change. You may also be disappointed if you are not satisfied with the above issues or if it no longer offers what you require.
The company’s current shortcomings are that they don’t offer retirement accounts, you can’t buy mutual funds or bonds and there is minimal customer service.
You may want to look at some of these Robinhood alternatives if you’re looking for low-cost investing and trading.
Robinhood Alternatives: The Best Alternatives
These Robinhood alternatives offer similar and unique features. Depending on your financial and investing goals, you may prefer one over the other.
Acorns
- Acorns
Acorns, a popular app for finance, allows you to invest in multiple options of trading at $0. You have a few options for investing on their side.
It is a micro-investment account that allows you to use your spare change.
Acorns will recommend an IRA or portfolio tailored to you. Acorns will then update and manage it to meet your goals.
They offer a checking with a debit that earns you money, saves and invests. Free bank-to-bank transfers are available, as well as no minimum balance or overdraft fees. You can also use ATMs for free or at a reduced rate across the country.
Acorns is available in three different tiers, each costing $1, $2 or $3 per month. Access to a wide range of financial products at a very affordable price.
M1 Finance
- M1 Finance
M1 Finance, a free financial platform and brokerage that offers “automated investment,” allows you to invest in fractional stocks or ETFs.
M1 Finance’s Pie-based interface makes it easier to build and manage an investment portfolio.
The app will ask for your personal details and goals after you have signed up. M1 Finance then creates a pie with over 6,000 stocks or funds. Then you can choose the pie that best suits you.
You don’t need to do any research or decide which funds are the best. Rebalance as necessary and keep investing!
You can find out more in my M1 Finance Review.
Stash Invest
- Stash
Stash is another app that you can use to invest. It offers banking, investment, retirement and savings all in one.
You can get started quickly with the $1/month beginner’s level. You can upgrade to their $3 or $9.00 a month plan that offers other benefits.
Stash offers fractional shares, which is similar to some other Robinhood alternatives.
You can choose between more than 400 different stocks and funds, including stocks, bonds and ETFs.
Stash offers a Roth IRA and a traditional IRA for retirement investments. You can even open a custodial account to invest for your children.
You can open an account here with no balance and start investing.
Webull
- Webull
No commissions and no fees are a popular service among investors. Webull is not an exception. Investment company Webull offers no minimum deposit and $0 Commissions.
Diversify your investment portfolio by using a range of products, such as ETFs, ADRs, and options.
Webull is a good platform for anyone, whether you’re a novice or an expert.
Service or management fees are not charged. Here you can find more information about pricing and fees.
Webull is a great alternative to Robinhood because it offers an in-depth analysis of your investment options. This allows you to make better trades and investment decisions while reducing your risk.
They also have an app that allows you to practice investing without using real money. You can learn to invest and improve your skills.
Webull has quickly grown to be a major player on the market for investment and trading apps.
Ally Invest
- Ally Invest
Ally Invest is a product of the popular Ally Bank. You do not have to be an Ally Bank customer to access their investing platform.
Ally Invest offers two types of trading: self-directed trading and managed portfolios. Here’s a quick overview:
Self-directed trading:
No commission on U.S. listed ETFs and stocks
Contract fees are competitive at only 50C/per contract and no commissions on options trades.
The do-it yourself investor can choose from a wide range of investment options
All types of investment choices can be supported by tools that provide in-depth market research and analysis.
Stocks and options with no commission, Commission free ETFs
Bonds and Mutual Funds
Margin account
Managed Portfolio (robo-advisor):
Start with $100
There are no advisory fees, annual fees or rebalancing charges. 30% of your portfolio will be set aside for an interest-earning buffer.
We will design and manage an investment portfolio that is tailored to your goals, risk tolerance, and time frame.
We will monitor your portfolio and rebalance it automatically to ensure that your plan remains on track
Includes a mixture of exchange-traded fund (ETF) that are low cost and diversified
Ally Invest can be a good Robinhood alternative, as it offers more options for investing and has trading tools that will help you to succeed.
Stockpile
- Stockpile
Stockpile offers a different experience. While many of the Robinhood alternatives offer free commissions on trades, Stockpile does not. Stockpile charges $0.99 for each trade. This is a reasonable price.
There are no minimums or monthly fees! Stockpile is a great option and offers some cool features.
You can buy fractional shares of over 1,000 stocks or ETFs.
Stockpile is an app that teaches you about stock trading through mini-lessons.
Stockpile is the only brokerage that allows you to give a physical or electronic gift card redeemable for stocks. Stockpile allows you to give a gift of stock without having a trading account.
You can also create a trading account for your children or teenagers, but you will need to be in control of it to make sure they don’t go crazy.
eToro
eToro
Many people want to invest in cryptocurrency, even though I am not. Robinhood is also used by many to purchase and sell digital currency like Bitcoin, Ethereum and others.
If you’re looking for a crypto-investing alternative, eToro is a good option to consider.
The platform is one of the top crypto destinations, offering the best coins with no hidden charges. You can start trading and buying on their platform with a $50 minimum deposit.
eToro also offers “Copy Trading,” which allows you to copy top traders without any additional charge. As part of the Popular Investor Program, eToro pays directly to top traders.
eToro USA LLC is not a CFD provider. It makes no representations or assumes any liability regarding the accuracy and completeness of this publication. This was prepared by our partner using publicly available information that does not identify eToro. Your capital is at stake.
Related: If you’re not sure yet about eToro, you can go with Coinbase. It is one of the most trusted and popular digital currency trading platforms.
11 Best Robinhood Alternatives To Start Investing Your Money Better
- TD Ameritrade
TD Ameritrade is one of the oldest stock trading platforms in this list. It is now owned Charles Schwab. This platform is great for day traders or new investors who are interested in the stock market.
There is a lot here to consider for retirees who are interested in buying and holding as a retirement investment strategy.
TD Ameritrade has eliminated commissions in 2019. As more fintech firms have pushed to reduce fees, almost all platforms offer some form of commission-free structure.
There is also no minimum account balance to start.
TD Ameritrade is a better option for you if it offers more options to trade stocks than Robinhood. It offers a variety of investment options, including mutual funds, bonds, forex and more.
Their educational and training materials are a big plus. When I first became interested in day trading, I used to use these materials.
You can learn a lot about investing with their mobile trading and thinkorswim platform.
Firstrade
- Firstrade
Firstrade was one of the alternatives I found when I searched for Robinhood alternatives. Firstrade is a new online broker to me.
Firstrade offers investors a traditional brokerage account, or a retirement account that includes diversified assets. For example, mutual funds, ETFs, options, stocks, etc.
The amount of tools and educational materials available to help investors build wealth and grow is what I appreciate about this company.
You can get reports from Morningstar, Benzinga and other well-known stock investing websites.
Like many other brokers on this list they also offer no hidden fees and free trades. It is important to choose a broker that allows you to keep as much of your money as possible.
E-Trade
- E-Trade
E-Trade is one of the oldest investing platforms, and it was recently forced to compete with other platforms that offer $0 commission on trades.
E-Trade, with its improved features and new fee structure, is the best choice if you plan to trade stocks more frequently.
You can choose from a variety of accounts, including traditional brokerage accounts, IRAs and managed portfolios. They also offer savings and checking account options.
With your trading account, you can access stocks, bonds and futures, as well as ETFs, mutual funds, and pre-built portfolios.
The platform provides extensive information for both beginners and experienced investors.
E-Trade, a Robinhood alternative, has taken a step up in offering $0 commissions on stocks, ETFs, options and ETFs, as well as minimal charges for other types of investing.
E-Trade is a big topic, so I won’t go into too much detail. If you’re interested or want to know more, I recommend that you explore their website and watch some of their videos in order to fully understand the benefits.
Public
- Public.com
Public invests a little differently than the other Robinhood alternatives listed.
The platform offers a commission-free trading option that focuses on stocks added to themes such as American Made, Fighting Disease and others. It’s not necessary to invest by theme but it is an interesting option.
You can now invest less in stocks and ETFs by purchasing fractional shares.
Public was also built to be a social platform.
You can follow famous investors and share your trades. The platform has also a blue-check feature to ensure that you are only following verified public figures.
Is there a better app than Robinhood?
Here are the top Robinhood alternatives you may want to look at. You can see that there are many options for stock trading with no commissions and minimal fees.
The trading app that you choose will depend on your investment style and the features you need to succeed.
Robinhood may not be the worst choice for me, but I think it is important to know what the platform has to offer and if there have been any recent issues with the company.
While a platform that is free or costs nothing may seem great, choosing a platform purely based on its price can compromise your results if you are trying to save a few dollars a year.
Other apps, such as Acorns and Stash offer additional features that will help you take your investment to the next step.
