At the start of 2021, Robinhood will be scrutinized for its effect on meme stocks. On sites like Reddit.com, investors bought meme stocks based on the buzz. Due to downtime and limitations, Robinhood’s retail investors missed out on profits, putting them under the focus at a recent GameStop hearing. We’ve put together a list of some of our favorite Robinhood alternatives that welcome new customers right now.
What is Robinhood?
Robinhood is a no-commission stock trading mobile app and desktop platform that is popular because it is free. Robinhood does not offer the full-service trading platform and desktop that most major brokers do, but it does provide a simple and attractive free alternative to larger brokerage firms. In return for a monthly account maintenance charge, Robinhood Gold offers you access to pre-and post-market trading as well as margin trading opportunities.
A $2,000 minimum account balance is required for Robinhood Gold. Robinhood has proved to be a formidable new force in the investment sector, with a $0 account minimum for ordinary taxable accounts and over 3 million brokerage accounts presently operating on its platform.
Why Robinhood Isn’t a Good Fit for You
If you’re searching for any of the following features that Robinhood lacks, consider creating an account with a Robinhood alternative:
Tools and Analytics – Because the top online brokerages want their traders to be successful, they frequently include a huge library of trading materials and educational tools to assist beginners in making winning trades. The simplicity of Robinhood’s platform comes at a cost: it lacks a significant variety of trade analysis tools. Robinhood lets users build watchlists and monitor real-time market data, but it doesn’t provide much in the way of trading education, which is an intriguing choice given that Robinhood’s target demographic is young investors eager to learn.
Options for Candlestick Charting – Despite the fact that Robinhood’s UI emphasizes simplicity and aesthetics, its candlestick charting tools are difficult to read on mobile. Robinhood, like other brokers, employs the usual green and red candle design, however, shadows are difficult to detect on Robinhood’s white smartphone background. Additionally, unlike most other sites, you cannot alter candle periods to minutes or hours.
Tax-efficient accounts – Start saving with a new broker if you wish to save for retirement or create an Individual Retirement Account (IRA). Robinhood only allows you to establish individual taxable accounts; it does not allow you to open an IRA or a solo 401(k).
Purchasing Options for Mutual Funds
Robinhood’s platform does not allow you to buy mutual funds.
What to Look for in an Alternative to Robinhood
If you like the basic functionality of Robinhood but want something a little more substantial from your brokerage platform, check for the following features:
Low Transaction Fees – Though it’s difficult to match Robinhood’s $0 transactions, several brokerages charge less than $7 per trade to buy and sell stocks, bonds, and ETFs.
A Platform That Is Simple To Understand – It doesn’t matter if you have the greatest brokerage account in the world if you can’t utilize it. Before you sign up with a broker, watch a few YouTube lessons on how to use the app or online trading platform to make sure you understand how to use it. The finest investment applications don’t limit capabilities on their mobile platform; they provide full desktop services in a mobile format that’s easy to use.
Compatibility with IRAs – If you want to buy equities for long-term keeping, you should create a conventional or Roth IRA rather than a taxable brokerage account, which is what Robinhood provides as its only account option.
Investing that is fully automated – Are you the sort of investor who understands he or she has to save for retirement but isn’t sure where to start? Robo-advisors charge minimal fees and commissions, making them a low-cost option to start saving for retirement, a first home, a child’s education fund, or any other future financial objective.
The Finest Robinhood Alternatives
Webull
Webull is a self-directed investment and trading platform for intermediate and expert investors and traders. When compared to other online brokers, short-term and active traders can save a lot of money on commissions. Although the Webull platform’s intuitive features and design may appear complex to new traders, the platform can still be learned.
For U.S.-listed companies, Webull offers a series of trading classes as well as a trading simulator or trial trading account with real-time data and extensive charting tools. Beginner traders who wish to learn more about the market and create a trading strategy can benefit from these features.
The Webull trading platform is accessible as a mobile web-based and desktop software, and it includes features that are beneficial to both expert and intermediate traders. The platform’s features offer you information and insights to help you make more lucrative transactions. You may use the platform’s capabilities to do both fundamental and technical analysis.
Webull is relatively newer to the brokerage industry, having been founded in 2017, yet it looks to have taken advantage of its late arrival. In some aspects, it appears that the firm has drawn ideas from current forerunners like Robinhood, which cater to young and casual investors who demand a fantastic mobile experience and a clean, simple desktop interface.
Webull, on the other hand, is a great option for more experienced active traders, with in-depth charting, hundreds of technical indicators, advanced orders, Nasdaq Level II market data, customization, and more. All of this is included within a user-friendly, elegant platform. Furthermore, the firm has made significant success in expanding its offerings: it launched an individual retirement account in late 2019, and just this year, it added cryptocurrencies, options trading, and fractional share investment.
TradeStation
For serious investors looking for a genuinely professional-level trading experience, TradeStation is an excellent option. In reality, TradeStation used to be exclusively for professional brokers and money managers. Regular investors now have access to the firm’s high-octane instruments, especially after the business reduced trading charges to $0 and the minimum investment for its TS GO offering to $0 as well.
The broker’s enhanced TS Select plan, which needs a $2,000 initial deposit but provides access to the broker’s entire suite of tools as well as free trades from the sophisticated TradeStation 10 Desktop platform, may be less appealing to new investors.
TradeStation combines a technically complex yet user-friendly trading platform with commission-free stock and options trading. TradeStation outnumbers Robinhood in terms of investment options. Users of TradeStation may trade futures, mutual funds, bonds, and even cryptocurrencies in addition to stocks and options.
TS GO and TS Select are two TradeStation products. As a mobile-only platform, we think TS GO is one of the finest. Furthermore, TradeStation provides a wealth of instructional materials to help users become better and more knowledgeable investors.
SoFi Active Investing
SoFi Active Investing, the latest venture from SoFi Invest, is aimed squarely at young investors, offering free stock and exchange-traded fund trades, as well as the ability to buy and sell 20 cryptocurrencies like Bitcoin and Ethereum, as well as marginal shares of blue-chip companies like Amazon and Netflix.
The self-directed brokerage is a component of the San Francisco growth of the company line of financial instruments, which also includes Robo-advisor SoFi Automated Money to invest and an online cash management account called SoFi Money. Members can take advantage of free training courses and conferences with financial advisors.
SoFi Active Investing was created with the needs of young investors in mind. The website offers free stock and ETF trading and the opportunity to buy and sell cryptocurrencies like Bitcoin and Ethereum and fractional shares of major corporations like Amazon and Netflix. Young investors may make use of the organization’s member advantages, which include free educational seminars and consultations with financial experts. And because SoFi has no account required, you can get started right now.
TD Ameritrade
TD Ameritrade has a $0 minimum investment requirement and offers a number of unique features, such as extensive and free research and data, portfolio-building advice, $0 fees on stock, option, and exchange-traded fund trades, and over 300 locations for in-person customer service. There are four trading platforms available to investors. Charles Schwab finalized its acquisition of TD Ameritrade in October 2020, but the two firms will be integrated over the following 18 to 36 months.
TD Ameritrade is a terrific alternative to Robinhood and one of the finest overall online brokerages. It quickly became a comprehensive platform with many more trading choices than Robinhood after turning commission-free in 2019. On both mobile and desktop, TD Ameritrade offers one of the most user-friendly systems. With its array of tools, they make studying companies and investing possibilities simple. With the numerous tools accessible, you may become a better investor.
TD Ameritrade is a once-in-a-lifetime broker that does everything right. Clients get an amazing range of services, including portfolio-building assistance, hands-on investing classes, high-quality research, trading tools, and a large variety of no-transaction-fee mutual funds, for a broker with no commission on stock, ETF, and options transactions. We can only anticipate that roster to improve in the future.
Moomoo
Moomoo is another excellent Robinhood option. If you want to become serious about smart trading, this is an excellent trading platform to use. Advanced charting, pre- and post-market trading, international trading, research and analysis tools, and, most importantly, free Level 2 quotations are among the trading tools and possibilities available to both novice and experienced traders.
Moomoo was created as a clever trading platform, and you’ll appreciate the minimal costs. This mobile trading platform integrated all of its advanced capabilities into a single app. For both novice and expert traders, it is free and simple to use. A variety of research tools are available to assist you in making informed investing decisions. If you want to replicate the investment experience before going all in, there’s also a paper trading function with real-time data. You may invest whenever it is convenient for you with Moomoo. With your personalized set-ups synchronized across several devices, you can start trading on the road or at home. To start an account, there is no minimum deposit.
Moomoo is a dependable platform for growing your investments, whether you’re a novice or seasoned investor. Its quick application procedure lets you start trading in as little as one business day, and it offers commission-free trading. You may also utilize its tools and resources for free to simulate transactions and observe market activity in real-time. If you need to make changes to your portfolio, the app is available 24 hours a day, 7 days a week. Create a free moomoo account today to take advantage of everything the mobile trading app has to offer. While at work, at home, or on the road, you may invest in companies you care about.
M1 Finance
M1 Finance is a free automated investing service that combines a standard investment management service with a Robo-advisor into a hybrid platform. Unlike other Robo-advisors, M1 Finance uses a unique “pie” approach to offer you a choice over where you want to invest.
M1 Finance is a one-of-a-kind investment tool that allows users to deploy assets using a method known as “pie investing.” When you establish an account with M1, you may pick among 80 expert portfolio allocations, referred to as “pies” by the platform. Each pie represents a “slice” of your total account and is made up of a unique combination of equities and ETFs. The asset allocation and investment decisions of pies make them apart. Investors who wish to save their money until they retire, for example, may select a pie with an emphasis on gradual, steady growth, while those who care about corporate social responsibility might choose M1’s socially responsible investing portfolio.
M1 simply provides minimal educational resources, and their customer service leaves a lot to be desired. M1 Finance, on the other hand, could be the ideal solution for you if you want to put your investments on autopilot.
When you sign up, you’ll be asked to complete an interview about your savings objectives and financial position, after which you’ll be given a proposed “pie,” which M1 Finance refers to as its asset division and represents with a pie graph. Each pie may include up to 100 distinct investment “slices,” making it simple to put together a varied portfolio without having to do a lot of research. After that, you may add stocks to the mix.
M1 Finance places a high value on continuous and regular investment, so you’ll be urged to set up automatic payments; M1 will handle distribution and rebalancing after your deposit has been processed. M1 isn’t for day traders, and you won’t be able to buy and sell stocks as rapidly as you can with Robinhood, but it does provide a clean, easy method to get started with long-term investment.
Public
The public is a social network that allows you to hold fractional shares of stocks and exchange-traded funds (ETFs), follow others, and discuss ideas with other investors. When you’re just getting started with trading, the public makes the stock market approachable and inclusive, making it simple to cooperate as you gain confidence. Offers to the general public:
Stocks: You may buy stock commission-free with any quantity of money. Small amounts of stock can be purchased for as low as $5. Vanguard, BlackRock, and other ETFs: You may also buy ETFs by the slice and save commission expenses.
The main truth is that you have the freedom to invest in any way you desire. By investing in fractional shares of stock or purchasing complete shares, you may create a portfolio on your terms. You may also establish or join group conversations to discuss businesses and trends, which is a unique feature of Public.
People should know that they may obtain a piece of the investing pie without breaking the bank, according to the public. To get started investing on the site, you only need a few dollars. You may acquire micro-shares, talk to other investors, and put your money where your mouth is by investing in companies that share your values and ambitions. It’s an excellent start to your investment career.
If you want to conduct any active trading, this is not the platform for you. We’d suggest checking into Webull for this, as it has features tailored to aggressive traders. Public, on the other hand, is an excellent choice for novice investors wanting to execute a buy-and-hold strategy. The software was created with the goal of making things as simple as possible for new investors.
Interactive Brokers
If you’re a regular trader who likes Robinhood’s cost-cutting approach but requires additional research tools and capabilities, Interactive Brokers is likely to be a good fit. Interactive Brokers has some of the most competitive trading costs in the industry. Most customers may anticipate paying $0.005 per share when purchasing and selling, which is substantially less than most other brokerage firms.
You receive unlimited free trades of stocks and exchange-traded funds available on US exchanges with IBKR Lite. If you want to trade additional investments including options, futures, mutual funds, fixed income, and more, you may do so with a Lite account on 135 exchanges in 33 countries, but the trading charges will be the same as they are for IBKR Pro clients. IBKR Pro is aimed at advanced traders, as the name suggests. If that’s the case, you’ll like the broker’s $0.005 per share (minimum is $1) per-share pricing, sophisticated trading platform, unrivaled choice of tradable assets including international equities, and absurdly low margin rates.
The Trader Workstation from Interactive Brokers is a complete trading tool with easy-to-read and analyze candlestick charts. Interactive Brokers also has an equally amazing mobile app that is designed to mirror the desktop Workstation’s capabilities. Stocks, bonds, options, mutual funds, and futures are just a few of the asset classes accessible.
Interactive Brokers, unlike Robinhood, has been created with the regular, forex investor in mind. With costs for inactivity with a per fee, Interactive Brokers isn’t the broker system for traders who are just getting started with investing. If you’ve been day trading on Robinhood and want to step up your game with greater research and analytical tools, Interactive Brokers may be the way to go.
Tradier
Tradier is a high-tech broker designed specifically for aggressive traders. Tradier sets itself apart by partnering with major trading software using Application Programming Interface (API) technology to provide investors with a variety of platform options. Tradier offers connectivity with one of the most comprehensive systems we’ve encountered, including Esignal, Orion Multi Trader, and Stockton.
Infrequent traders may prefer Tradier’s 0 Stocks and $0.35 per Options contract trading, but extremely active traders may frequently save money by choosing Tradier’s $30 monthly all-inclusive option and Equity, which eliminates fees altogether.
For Tradier Brokerage accounts, Tradier provides financial platforms with trading, account management, and market data. Tradier Brokerage also works with platforms to identify consumer offerings that provide existing and potential clients a compelling value proposition. A wide range of stock and options platforms and traders can benefit from this approach.
Tradier also gives you access to a growing range of integrated trading platforms created by enthusiastic third parties. You may choose the one that best suits your needs, or you can change or develop additional features and platforms.
Streaming APIs are available at your fingertips, allowing you to create basic and sophisticated equity and option orders using a simple interface.