Robinhood, a relatively new stock broker that was established in 2013, quickly became one of the biggest brokers in the world. More than 13 million active traders use Robinhood today, and it is now a favorite among novice investors. In this blog, we are sharing some best Robinhood Alternatives apps for trading in stock and crypto.
The trading platform went down in the middle of 2020. As the value of their portfolios declined, day traders were left with no choice except to wait. Investors were completely unable to sell or buy their shares. According to CNBC, the downtime resulted in a class-action lawsuit being filed against the corporation by individuals who claimed they lost out on some of the potential greatest single-day profits in market history.
The suspension of buy orders for GameStop and AMC stocks by Robinhood and a number of other brokers in late January 2021, which prevented customers from purchasing these stocks despite their increased volatility, angered other users in a similar way.
Some crew members started to leave the ship in search of other options.
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The Finest Robinhood Substitutes
Exist any strong competition to Robinhood that can compete with what the company has to offer?
There are, indeed! Here is a list of a few to think about.
E*Trade
E*Trade is a reputable online discount broker that was established in 1982 as a division of Morgan Stanley. Today, the broker provides one of the most well-liked investing apps online and services more than 7.1 million investors.
In terms of functionality, the platform is comparable to Robinhood and offers many of the same services as well as a few extras, such as:
- Free Exchanges. E*Trade provides commission-free trades to its investors, just like Robinhood does. Remember that even though you don’t pay a commission on free trades, regulatory costs still apply to them.
- Forex. Unlike Robinhood, the platform gives investors access to the foreign currency (FX) market.
- Ease of Use. Utilization ease When compared to Robinhood, the company’s trading platform may appear complicated at first, but as you get started trading, you’ll see that all the tools you require are conveniently located in the same places that you need them as you make investments, making it one of the simplest platforms to use.
- Derivatives Trading. Trading in derivatives is supported by E*Trade, enabling its investors to profit from the derivatives market.
- Optional trading and investment strategies. You have a wide range of alternatives for the assets you can invest in with an E*Trade brokerage account. Users have access to mutual funds, exchange-traded funds (ETFs), bonds, certificates of deposit (CDs), and prebuilt portfolios created by industry top specialists in addition to currency, stocks, and derivatives.
- Complete hearts. Importance of technical analysis is paramount if you day trade. Therefore, it’s crucial that you have the tools required for reliable charting. Although Robinhood does include certain charting options, E*Trade’s selection of indicators is significantly more comprehensive and extensive than Robinhood.
- A user-friendly app. The business also provides a mobile app, enabling users of the platform to trade while on the go. The mobile app is exactly as simple to use and straightforward as the desktop version.
E*Trade, a division of Morgan Stanley, is a well-known online brokerage house.
TD Ameritrade
Another well-known investing agency is TD Ameritrade. The firm, which was established in 1975, has a long history of helping its clients get wealthier.
More than 11 million investors, including its newest platform dubbed thinkorswim, actively utilize one of TD Ameritrade’s platforms, the business claims. Utilizing the company’s services has several advantages, including:
- Free of commission trading. TD Ameritrade doesn’t impose commission fees on trades, just like Robinhood and a sizable number of other online brokers. You will be obliged to pay regulatory costs as you trade, just as with any other broker.
- Charts. For traders, the thinkorswim platform was created by traders. So, you can trust that you’ll discover the indicator you need on the site for your stock trading and investing operations.
- OTC Stocks. OTC Securities Only stocks listed on significant exchanges like the New York Stock Exchange and the Nasdaq are offered by Robinhood Clone and the majority of internet platforms. Investors who utilize TD Ameritrade have access to equities listed on the OTC Bulletin Board and over-the-counter (OTC) pink sheets.
- Investing in robots. For those who lack the time or the knowledge to manage their own portfolios, you will also have access to an automated investment service. Once registered, your investment money will be scattered over a variety of low-cost, diversified funds, giving you broad exposure to the market.
- Advisor Services. Services for advisors The business has a group of financial consultants on hand to help its clients navigate the market.
One of Wall Street’s most reputable brokers is TD Ameritrade. Customers of the company like the easy-to-use trading tools provided by the thinkorswim platform and the opportunity to use the automated investment service with a largely hands-off approach.
Webull
Webull, another recent broker that is popular with investors, particularly novices, was founded in 2017. The business now serves more than 10 million active members in just a few short years.
Why do investors choose the Webull platform, then?
- Free of commission trading. The organization doesn’t charge commissions on any trades, which helps to lower the cost of investing even though you will be liable for regulatory expenses related to your trading activity as with any broker.
- Trading in cryptocurrencies. Customers of Webull can purchase and sell a wide variety of cryptocurrencies, including well-known ones like Bitcoin, Ethereum, Ripple, and Litecoin.
- Optional Investments. Along with a large selection of assets related to cryptocurrencies, you will have access to equities listed on significant exchanges, options, and ETFs.
- Impressive App. Webull’s mobile platform includes all the capabilities found in the desktop edition, including a stock screener and a comprehensive set of indicators.
- Free Stock Promotions. You will get two free stocks worth between $3 and $300 when you register an account with WeBull. You will receive up to 10 additional fractional share equities, each worth between $7 and $3,000, once the account is financed, for a possible bonus value of more than $30,000.
Webull is a 100% online brokerage that places a strong emphasis on the notion that cutting-edge technology may increase your stock market returns.
M1 Finance
Another relatively young internet business that’s making headlines on Wall Street is M1 Finance, which was founded in 2015.
When compared to other brokers, M1 Finance is currently modest, with only roughly 500,000 subscribers and $4.5 billion in assets managed. However, the platform is expanding swiftly for a number of reasons, including:
- Free of commission trading. The business has never imposed commission fees on trades executed through its platform.
- Shares in fractions. The trend of allowing consumers to buy fractional shares hasn’t completely taken hold across all the big brokerages just yet. There are only a few businesses that provide them, though. M1 Finance is one of the few.
- Charts of quality. The services offered by the business are geared toward independent investors. This indicates that all the tools you would require to make wise investing selections are included on the site, including excellent, real-time charts.
- A logical trading app. Additionally, users get access to one of the greatest mobile platforms with the same features as the desktop platform, which is extremely user-friendly.
When compared to other brokerage businesses, both online and off, M1 Finance is still a young company. However, the company is swiftly catching the attention of the retail investing world with its trading tools that are meant to turn novice investors into experts.
Ally Invest
Ally Financial has been around for a while and is a renowned member of the investment world. It was founded in 1919. The company currently manages more than $13 billion in assets on behalf of over 406,000 investors.
Here are some explanations as to why investors pick Ally Invest:
- Trading with a semi-free commission. You won’t have to be concerned about commissions if your trading is over the level of penny stocks. However, a flat charge of $4.95 per trade plus $0.01 per share will apply to any stock or fund that costs less than $2 per share.
- A Variety of Resources. Investors will have access to bonds, mutual funds, options, and ETFs in addition to stocks and ETFs.
- Intuitive Tools. With charting tools and a comprehensive education centre, Ally Invest gives its customers access to some of the most user-friendly products available today.
- Simple But Powerful App. Ally Invest’s mobile platform is so basic that it seems to be lacking something. However, as soon as you use it, you’ll see that’s not the case – the app has all of the features of the desktop platform but in a beautiful, intuitive mobile style.
Acorns
Over the past few years, the robo-advisor and micro-investing platform Acorns has seen significant growth. Since its founding, the business has amassed a clientele of more than 8.2 million customers and managed more than $4.7 billion in assets.
Acorns aren’t your typical broker, though. The business is a robo-advisor that fully eliminates the labour involved in investing. The fundamental investing tenet is that you can invest a significant sum of money over a longer period of time by rounding up your purchases to the next dollar and then depositing the difference in your investing account.
Your spare-change deposits are subsequently invested in a number of ETFs, giving you broad market exposure. Here’s why the business has attained the following:
- Don’t touch. An entirely hands-off method of investing is employed by Acorns. You won’t need to spend time gathering information, developing your portfolio, and rebalancing it. A top-notch group of professionals will take care of all of it for you.
- Find a job. In addition to assisting you in finding a new position that will enable you to earn more money, the company will also reward you for doing so through the Acorns Earn program.
- Earn Benefits. A portion of your purchase price will be placed into your investment account when you shop using the Acorns app at well-known retailers like Walmart, Apple, and Chevron, increasing your opportunity to profit from the financial markets.
- Track Your Spending. Monitor Your Spending Acorns is a comprehensive personal finance app that helps you manage your money responsibly, from earning more money to spending and saving it sensibly. It’s not simply an investing app.
Betterment
Another robo-advisor that caters to investors who prefer to have their portfolio managed by professionals rather than picking their own stocks is Betterment.
Betterment was one of the first robo-advisors to enter the market, having been founded in 2008. Currently, the organization manages more than $29 billion in assets and more than 615,000 users.
The following are some of the biggest advantages of employing this automatic method of investing:
- Low-Cost Investing. Only 0.25 percent of the assets that Betterment manages for you are charged as an annual fee. You would pay a $25 annual charge if you put $10,000 into your account, for instance.
- Just leave it alone. You can program monthly transfers into the account or make one-time deposits through the platform. Once funds are deposited, your investment account will be managed on your behalf, allowing you to devote more time to other activities.
- Create an asset allocation plan. With Betterment, a portion of your portfolio is placed in extremely diverse funds, while the remaining funds are placed in an extremely varied selection of bonds. On the platform, you have the option of keeping the asset allocation that the company determines for you based on your goals or customizing it to reflect your particular risk tolerance.
- Cash Savings with a High Return. The business also gives you the option to open a cash reserve account, guaranteeing that you always have access to liquid capital. The interest earned on funds kept in your cash reserve account will be significantly higher than that of a conventional savings account.
Fidelity
Another investment firm with a lengthy history of looking out for its clients is Fidelity, which was founded in 1946. With more than $10.4 trillion in customer assets under management, the company currently provides services to more than 83.4 million investors.
Why do you think so many people invest in the business?
- Free of commission trading. You won’t ever pay commissions on your transactions if you decide to trade with Fidelity.
- Outstanding charts. Fidelity, one of the biggest and most reputable brokerages on Wall Street today, provides some of the best real-time charting technology available, along with all the indicators you’ll need to succeed whether you’re investing in stocks or trading futures.
- Opinions and commentary from analysts. It’s never a good idea to blindly adopt any expert’s viewpoints, but it is a good idea to utilise them as support for your own. Fidelity helps its customers make informed financial decisions by providing content from more than 20 well-known Wall Street professionals.
- Slices of stocks. The option to buy and sell fractional shares is one of the main factors contributing to Robinhood’s success. The same capability is provided by Fidelity’s Stocks by the Slice. Instead of being compelled to purchase a whole share at the stock’s current price, the platform will allow you to acquire fractional shares based on the dollar amount you wish to invest.
- Individual Banking. Additionally, Fidelity provides a range of personal banking products, including debit cards, savings accounts, and checking accounts.
- Funds of Investment Grade. Fidelity offers a variety of fund types, including ETFs, many of which have industry-best cost ratios, to investors.
- Accounts for retirement. For 401(k) and IRA retirement savings, Fidelity is a trusted supplier.
Firstrade
Firstrade Securities has been assisting clients for well over three decades since its founding in 1985. The platform offers the following advantages to investors:
- Free of commission trading. The company doesn’t impose trade-related commissions, similar to many others on our list.
- Options Contract Fees Are Null. The great majority of brokers charge contract fees for options, including those who don’t charge commissions. Firstrade defies convention by providing options with no contract fee.
- Many Investment Options. You will have access to a wide range of investment assets when you invest with the company, including stocks, ETFs, bonds, mutual funds, and options.
- Promotions for free stocks. Like Robinhood and Webull, Firstrade is aware of how rapidly attracting new users to its site may be accomplished by providing free shares of stocks. Every time a buddy uses the platform to make a referral, you receive a free share.
- Comprehensive Research. exhaustive research Additionally, you will have free access to in-depth analysis from reliable sources like Benzinga, Zacks, and Morningstar.
- Superior Trading App.. With superior charts and investment analysis, the company’s app is on a level with, if not superior to, the Robinhood app in terms of trading features.
Charles Schwab
Charles Schwab, another reputable brokerage that was established in 1971 and has a track record of helping investors increase their wealth, With more than 32.4 million active accounts, the company is currently one of the biggest financial brokerage firms in the United States.
Here are some reasons why so many investors put their money with Schwab:
- Free of commission trading. Although Charles Schwab wasn’t always on board with the free commission movement, it swiftly modified to join it when it caught on on Wall Street. The company’s online trading platform is now commission-free for all transactions.
- Investing in robots. The Schwab Intelligent Portfolios are hosted on this platform. With these portfolios, investors have the chance to have their investments handled by some of the most well-known Wall Street figures.
- Numerous Assets to Select From. Investors enjoy options. Investors can access a variety of investments through Charles Schwab, such as equities, bonds, CDs, ETFs, mutual funds, index funds, money market funds, options, and futures.
- Innovative Educational Resources. Making informed, well-researched decisions is the cornerstone of successful investing. You’ll be well served by reviewing the educational resources provided by Charles Schwab if you’re a newbie. The company’s teaching center has one of the most thorough wealth-building manuals available online right now.
- Access to Advisors. Having access to advisors This is an excellent alternative for people who value having an advisor on their side because investors have access to the company’s advisory services.
Stash
A startup called Stash was founded on the premise that modest contributions made today can have a significant impact on the future. The business encourages its investors to make several little investments and prudent financial choices, a strategy that has helped many people amass money.
Stash is currently used by more than 5 million people, and that number is rapidly increasing. This is why:
- Low-Cost Investing. Depending on the type of account you have and the investments you make, Stash costs between $1 and $9 a month.
- Shares in fractions. The company was one of the first affordable online brokers to use fractional shares. As a result, rather than being restricted to buying full shares, users of the company’s trading platform will be able to purchase shares depending on the dollar amounts they choose to invest.
- Card-Back Stock. Investors can automatically invest based on their spending by using the Stash Stock-Back Card, a rewards debit card, to receive stock back on their purchases. This form of benefit, which functions like a cash-back rewards program but gives customers shares instead of points, is currently exclusively provided by Stash.
- Invest money for your kids. You may create investment accounts for your kids using Stash, giving you the opportunity to give them a solid financial foundation and a knowledge of why investing is important.
- Services for personal banking. The business provides personal banking services, such as checking and savings accounts, along with a debit card bearing the Stash logo.
Public.com
More than a million users have joined Public.com, a broker that was only established in 2017, and for many good reasons. What draws the majority to the Public is as follows:
- No Commissions. You won’t be paid fees when trading on the site, but these savings actually goes a step further. In exchange for directing orders to other parties, some brokers employ payment for order flow services. Not one of them is this platform. Instead, the platform has a “Tip Your Broker” feature that allows consumers to reward the company for facilitating the trade, totally doing away with any potential hidden costs and broker conflicts of interest.
- A public portfolio. Examining other, prosperous portfolios is a terrific technique for beginners to have an understanding of excellent stock market portfolios. The website gives the investment process a social twist by making your portfolio public and allowing you to view the portfolios of other users.
- Shares in fractions. Instead of being restricted to buying complete shares when investing with Public, you will be able to invest in fractions of shares based on the dollar amounts you desire to invest.
- An easy interface. Although the platform’s lack of features may turn away more seasoned traders, it’s a wonderful choice for many investors, especially novices who want to adopt a straightforward strategy with a user-friendly interface.
- Quality App. You’ll adore the company’s mobile app if you lead an active lifestyle because it was created with the same “simple and better” philosophy as the desktop platform.
SoFi
Last but not least is SoFi, a 2011 startup bargain online broker. The organization has more than 1 million members and provides excellent personal finance tools coupled with an engaging investing experience.
What people adore about SoFi is as follows:
- No minimums or fees. Investors are not required to maintain a minimum account balance with SoFi, and no commissions are assessed on trades. You are invited to use the platform no matter how much money you have to start with.
- Trading in cryptocurrencies. Although the platform is deficient in regards to securities like bonds and mutual funds, it does allow for cryptocurrency trading, which is something you won’t often find with most other brokers.
- Stock Bits. Stock Pieces When investing in stocks with SoFi, you don’t have to purchase a full share. Instead, even if the dollar numbers only tally up to tiny fractions of a share, you have the choice to buy shares based on dollar amounts rather than share counts.
- Financial guidance. It’s possible that the SoFi platform’s free financial coaching is one of its main charms. By utilizing these services, you’ll have a professional to draw on when making decisions regarding your investments as well as more general personal financial matters, which is a priceless resource.
- No Cost Stock. You can play the stock claw machine once you sign up and fund your account. You can win a stock in the game that is worth between $5 and $1,000.
- Features for personal finance. The business also provides a wide range of personal finance solutions, including debt consolidation services, student loans, and personal loans.
Final Word
An attractive investing platform is Robinhood. The platform, which was created for novice investors, has attracted a lot of interest. Some users, however, have lost faith in the platform as a result of recent disruptions and trading limitations that cost many members potential earnings — or, worse, resulted in losses.
Although Robinhood has stated that all problems caused by the outage have been fixed as of this time, many people are searching for alternatives because of the persistent worry that a repeat of the incident may occur.
