With all of the unfavourable buzz round Robinhood following their determination to freeze GameStop buying and selling in early 2021, many traders are selecting different brokerages. However Robinhood paved the best way for extra beginner-friendly investing with options like an easy-to-use app, commission-free buying and selling, and fractional shares.
So which apps are similar to this dealer? On this article, I’ll evaluation the very best Robinhood options and investing platforms so you will discover an appropriate substitute for you and begin buying and selling.
Overview of the Greatest Robinhood Alternate options
Model | Greatest for | Minimal steadiness | Funding choices |
---|---|---|---|
Public | Small-time traders | $0 | Shares, bonds, mutual funds, ETFs |
E*TRADE | Frequent merchants | $0 | Shares, bonds, mutual funds, ETFs, choices, futures |
M1 | Seasoned traders | $100 | Shares, ETFs |
Webull | These desperate to study | $0 | Shares, ETFs, crypto |
TD Ameritrade | Intermediate-level merchants | $0 | Shares, bonds, mutual funds, ETFs, futures |
Betterment | Fingers-off investing | $0 | ETFs |
Ally Invest | Self-directed traders | $0 | Shares, bonds, mutual funds, ETFs, choices |
Stash | Non-savers | $0 | Shares, ETFs |
Acorns | Automated investing | $0 | Shares, bonds, ETFs |
Fidelity | Full-service investing | $0 for retail brokerage accounts | Shares, bonds, ETFs, CDs, choices, and mutual funds |
Greatest for Small-Time Buyers: Public
- Free funding platform
- Fractional investing
- Social parts
Public is a free funding app that’s primarily aimed towards new traders. They focus on serving to people make investments that align with their rules and social decisions. Public does this by involving social media within the funding course of.
Moreover, they provide fractional investing, which lets you purchase lower than an entire share of any sure inventory. This allows you to make investments straight away in firms with a excessive value per share (assume, Tesla, Google/Alphabet, Apple). You may as well hold monitor of different customers and their funding methods, observe particular firms, and get market information dwell from consultants.
The Public platform is free and beginner-friendly.
Public says that they’re attempting to make the inventory market extra inclusive. And since the app has a social feed, you possibly can make investments proper alongside different extra skilled traders in addition to your mates. That is the place the social facet is available in.
On high of that, Public contains (verified) public figures (therefore the identify) throughout the app. This can be a lot like how Twitter and Instagram confirm celebrities and high-profile people. You possibly can then see what these individuals are investing in, watch their buying and selling exercise, and both pull concepts from their strikes or copy their portfolios utterly.
Proper now, Public is providing a $10 bonus for signing up and making an preliminary deposit. You may as well present fractional shares to others you check with the app.
Be taught extra about Public or learn our full Public evaluation.
Greatest for Frequent Merchants: E*TRADE
- 250 fee-free ETFs
- Hybrid funding choices
- Entry to E*TRADE financial institution
E*TRADE is likely one of the most superior buying and selling platforms on the market. Their app is extremely intuitive and allows you to commerce not solely shares and ETFs, but in addition choices and mutual funds. You’ll have the power to do in depth analysis if you wish to or just use an ETF screener to discover a match to your funding wants.
These choices make this app nice for learners and extra superior traders alike. Talking of superior traders, you possibly can improve to the Energy E*TRADE app, which provides you entry to extra intricate buying and selling methods, in addition to the power to commerce futures.
I additionally actually like the academic info E*TRADE supplies free of charge. In the event you’re a brand new investor, these assets will assist educate you methods to analysis a inventory, diversify your portfolio, do technical evaluation, truly purchase shares, and extra.
Moreover, you will get entry to choices and extra funding analysis since E*TRADE has now bought OptionsHouse. And, in contrast to Robinhood, E*TRADE has retirement choices together with IRAs. So you possibly can make investments for the lengthy haul in a tax-advantaged account.
Be taught extra about E*TRADE or learn our full evaluation.
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Greatest for Seasoned Buyers: M1
- No minimal steadiness requirement
- No charges
- Hybrid between self-directed and a robo-advisor
M1 is a well known free funding service in addition to an fascinating rival to Robinhood. With M1, you will get each conventional funding companies {and professional} funding steerage. And what I really like is that the app helps you to management the place your {dollars} will go.
This platform is sort of a hybrid between a conventional brokerage and a robo-advisor. Nevertheless, versus another apps or robo-advisors that make investments your cash robotically and inform you the main points, this app makes use of its cutting-edge “pie” system to elucidate all your funding choices intimately and enable you to make decisions for your self. Right here’s the best way it really works.
First, the app asks about your investing plans. Relying on the data you give, M1 makes a “pie.” This pie is damaged into “slices” that characterize particular person investments. However as a substitute of requiring you to purchase the total share, you should purchase a fractional share for every. That means, you’ll be able to diversify your funding portfolio and put money into a big selection of investments with out performing any grueling analysis.
After that, M1 will rebalance your portfolio each time you make an funding, holding the odds of every slice on monitor with what you set. So in case you have 4 investments (4 slices) every at 25% allocation, M1 will be sure that ratio stays constant as you add more cash to your account.
Compared to Robinhood, M1 fails to purchase and promote shares speedily. In reality, there is just one window of time through the day the place M1 purchases shares. You possibly can improve your account to get two time home windows, nevertheless it’s nonetheless restricted. Nonetheless, it does offer you IRA options and a $0 fee degree. In abstract, it’s an easy-to-use answer to get began with long-term funding.
Be taught extra about M1 or learn our full M1 evaluation.
Associated: M1 vs. Robinhood: Which Is Higher for You?
Greatest for These Keen To Be taught: Webull
- Plenty of evaluation assets
- No commissions
- No minimal steadiness
Webull is an funding platform, designed for each new and seasoned traders. It has no charges – together with commissions – aside from some minor wire transfers and SEC charges. This makes it a viable different to Robinhood.
There are loads of issues to love about Webull when in comparison with Robinhood. One function that’s extremely precious is that Webull’s app will analyze investments for you, primarily based in your monetary scenario, to assist decide which investments are the very best decisions for you. This manner, you don’t spend all day deciding on every funding and might as a substitute make fast, knowledgeable selections.
Webull additionally works laborious to make sure its prospects perceive the inventory market effectively. For instance, you’ll have entry to a extremely useful observe account that permits you to make trades with pretend cash. This manner, you possibly can observe sure funding methods earlier than you are taking them dwell in your actual Webull account. Then when you’re pleased with a plan of assault, you should use these ways on actual investments with actual cash.
Webull additionally has extra options for elevated flexibility, like after-hours buying and selling (for sure account sorts) and detailed info on just about any asset you wish to put money into. Their charting and different analysis choices are additionally pretty sturdy, particularly contemplating it’s a free platform. And lastly, like Robinhood, Webull has no minimal steadiness to get began.
Be taught extra about Webull or learn our full evaluation.
Greatest for Intermediate-Degree Merchants: TD Ameritrade
- Nice for brand new or skilled traders
- Complete buying and selling choices
- No commissions
I discover TD Ameritrade to be among the finest total brokerages on the market – not simply in comparison with Robinhood. That mentioned, TD Ameritrade is a wonderful different to Robinhood, for the fitting investor. TD Ameritrade removed commissions again in 2019, too. So it solely made this platform extra fascinating.
I like to consider TD Ameritrade as a middle-ground between one thing like Webull (extra for learners) and E*TRADE (the place learners can make investments, nevertheless it’s most likely a bit too highly effective and sophisticated). TD Ameritrade finds a pleasant steadiness between usability and analysis choices so you possibly can rapidly select shares to put money into.
The platform is straightforward to navigate and works completely on each the app and desktop/laptop computer computer systems. With the analysis instruments you’ll have at your fingertips (like screeners, charting, and extra) you possibly can rapidly discover something you’re on the lookout for and make investments straight away.
Be taught extra about TD Ameritrade or learn our full evaluation.
Greatest for Fingers-Off Investing: Betterment
- Full funding administration
- Tax-loss harvesting on taxable accounts
- No minimal preliminary funding required
Betterment is a real robo-advisor, so it’s a bit completely different than some others on this listing. That mentioned, they’re an excellent substitute for Robinhood purely due to the simplicity they provide. Betterment is likely one of the solely robo-advisors that has no minimal deposit – so individuals coming from Robinhood will most likely like that.
Betterment additionally presents a checking and financial savings account (known as their Money account) for gratis. Once you join, you’ll undergo a sequence of questions that assist Betterment perceive your objectives and total danger tolerance.
From there, Betterment will craft a singular portfolio of ETFs that they’ll robotically handle for you. And as your life modifications, your objectives will change. So you possibly can modify your funding technique at any time sooner or later.
The Betterment app may be very straightforward to make use of, too. On the draw back, you possibly can’t choose particular person shares as you possibly can with Robinhood, and the platform isn’t completely free (Betterment expenses a 0.25% administration payment). However this platform is loads simpler to make use of than Robinhood.
Be taught extra about Betterment or learn our full evaluation.
Associated: Are Robo-Advisors Price It? A Full Information
Greatest for Self-Directed Buyers: Ally Make investments
- No commissions
- Easy dashboard
- Robo portfolios choice
Ally Make investments’s simplified funding platform makes it a viable different to Robinhood. When you don’t must be an Ally Financial institution buyer to enroll, having a number of accounts with this financial institution permits for full integration.
There are not any charges with Ally Make investments and it has lots of the options that Robinhood doesn’t have. First is the power to have both a self-directed account or a managed account. If you wish to select your individual shares as you possibly can with Robinhood, you possibly can elect to make use of the Self-Directed portfolio. Alternatively, if you wish to have a extra hands-off strategy you should use the Robo Portfolio choice, which provides you a pre-built portfolio and acts extra like a robo-advisor.
The dashboard is clear and straightforward to navigate, too. From the dashboard, you possibly can see your income and losses and simply make investments.
Moreover, you should purchase not solely shares and ETFs but in addition mutual funds, bonds, and choices with Ally Make investments. All are utterly commission-free, although choices contracts do have a small payment for executing.
Be taught extra about Ally Make investments or learn our full evaluation.
Greatest for Non-Savers: Stash
- Full banking options
- Automated choices
- Useful steerage
Stash isn’t completely free like a few of the others on this listing. Its entry-level plan is $3 monthly, and also you’ll want at the very least $5 to begin investing (not a lot, however nonetheless value noting). That mentioned, the Stash app is superior. It’s straightforward to make use of and jogs my memory loads of Robinhood in the best way it’s designed. You should buy shares and ETFs with Stash and make the most of fractional shares for higher diversification at a decrease value.
Stash has two varieties of accounts – Development ($3/month) and Plus ($9/month). Every has extra options that will or might not apply to you (like investing for youngsters with the Plus degree). Nevertheless in case you’re simply on the lookout for a Robinhood substitute, the $3 Development degree ought to greater than suffice.
Stash is superb for learners since you’ll get a spare change funding app, banking choices (like checking and financial savings), in addition to a debit card. Having all the pieces housed in a single app makes managing your funds a breeze.
Be taught extra about Stash or learn our full evaluation.
Associated: The Professionals and Cons of “Spare Change” Funding Apps
Disclaimer – Paid non-client endorsement. See Apple App Retailer and Google Play evaluations. View important disclosures.
Funding advisory companies supplied by Stash Investments LLC, an SEC registered funding adviser. This materials has been distributed for informational and academic functions solely, and isn’t meant as funding, authorized, accounting, or tax recommendation. Investing includes danger.
¹For securities priced over $1,000, buy of fractional shares begin at $0.05.
²Debit Account Providers offered by Inexperienced Dot Financial institution, Member FDIC and Stash Visa Debit Card issued by Inexperienced Dot Financial institution, Member FDIC. pursuant to a license from VISA U.S.A. Inc. Funding services and products offered by Stash Investments LLC, not Inexperienced Dot Financial institution, and are Not FDIC Insured, Not Financial institution Assured, and Could Lose Worth.” as a result of the article mentions the debit card.
³You’ll additionally bear the usual charges and bills mirrored within the pricing of the ETFs in your account, plus charges for varied ancillary companies charged by Stash and the custodian.
⁴Other charges apply to the debit account. Please see Deposit Account Agreement for particulars.
⁵Stock-Again® will not be sponsored or endorsed by Inexperienced Dot Financial institution, Inexperienced Dot Company, Visa U.S.A, or any of their respective associates, and not one of the foregoing has any duty to meet any inventory rewards earned by way of this program.
Greatest for Automated Investing: Acorns
- Spare change investing
- Skilled-curated portfolios
- Automated financial savings
Acorns Make investments is a robo-advisor that provides commission-free buying and selling and built-in options that can assist you save and make investments with much less effort. To automate your investing, you possibly can schedule recurring transfers from a linked account for as little as $5 a month and arrange Spherical Ups to speculate the spare change out of your on a regular basis spending. Acorns calls this “investing within the background.”
As a result of it makes use of a robo-advisor, Acorns works otherwise than Robinhood. Somewhat than constructing your portfolio your self, you’ll select certainly one of 5 pre-made portfolios made up of ETFs. You’ll begin by answering a number of questions on your investing objectives after which Acorns will suggest a portfolio for you. You possibly can both go along with this one or select one other.
Like Robinhood, Acorns helps you to put money into fractional shares. This makes it potential to have a well-diversified portfolio even in case you solely have somewhat cash to speculate, with greater than 7,000 completely different shares and bonds accessible. And the Acorns app is simply as straightforward to make use of as Robinhood, if not simpler.
This seemingly isn’t the fitting funding account for superior merchants who wish to select particular person investments for themselves, nevertheless it’s an incredible match for individuals who wish to make investments on a smaller scale and save with out fascinated with it. The Private plan prices $3 a month and the Household plan prices $5 a month.
Be taught extra about Acorns or learn our full evaluation.
Greatest for Full-Service Investing: Constancy
- No commissions on U.S. shares, ETFs, and choices
- Instructional assets
- Advisory companies (for a further value)
Constancy presents self-directed investing and commission-free inventory, ETF, and choice buying and selling. This platform is good for individuals trying to do extra than simply commerce shares because it presents extra account sorts than many on-line brokers, superior buying and selling choices, and loads of analysis instruments.
Not like Robinhood, Constancy additionally helps you to put money into bonds, CDs, and mutual funds. A few of these include buying and selling charges, however there are a variety of ZERO expense ratio index mutual funds accessible.
In the event you like the thought of fractional share buying and selling, you’ll like Constancy. Plus, there are not any account minimums required to commerce.
General, Constancy has a way more complete platform and suite of companies than Robinhood. It additionally has the benefit of being an enormous firm with a stable repute and almost $10 trillion in belongings.
This won’t be the fitting brokerage account for you in case you’re model new to investing because it’s not as beginner-friendly as a few of the different funding accounts we’ve talked about and could be a little intimidating. However in case you’re a DIY investor with some expertise underneath your belt, you’ll most likely recognize Constancy’s depth and wide selection of companies.
Be taught extra about Constancy or learn our full evaluation.
Associated: Constancy vs. Robinhood: Is One a Clear Winner?
How I Got here up With This Record
To search out the very best Robinhood options, there have been a number of major elements I thought-about:
Commissions
Since Robinhood actually opened the door for $0 commissions, I wished to seek out brokerages that supplied buying and selling free of charge. The place this used to imply you gave one thing up, almost all main brokers have gotten on board with $0 commissions and you continue to get a great deal of options.
Ease of Use
Robinhood crushes it with ease of use. That’s one motive they received so in style so quick – their cell app gamifies the funding expertise. I appeared for brokerages that had a clear and easy-to-use cell app in addition to a helpful desktop choice if you wish to make investments from dwelling.
Additional Options
Robinhood has further options like the power to put money into crypto or utilizing Robinhood Snacks – their information feed that I completely love. When on the lookout for appropriate replacements, I wished to verify every choice had a singular function or two so you have got choices.
What Is Robinhood?
Earlier than we get into why you won’t wish to use Robinhood, let’s again up and discuss what Robinhood is.
Robinhood is an investing app and inventory buying and selling platform that was created in 2013. The corporate’s founders, Baiju Bhatt and Vladimir Tenev, felt that the monetary business unfairly deprived the non-wealthy. They wished to create a platform that will make it potential for anybody to begin investing, irrespective of how a lot cash or expertise they’d.
What initially made Robinhood stand out was the truth that you possibly can commerce shares with out paying fee charges and purchase into giant firms with fractional shares. Robinhood additionally made it straightforward to find out about investing and entry real-time market knowledge. This was all new and novel again in 2013, however now there are loads of beginner-friendly on-line brokerage accounts with comparable options and advantages.
Though Robinhood remains to be very a lot in enterprise, an increasing number of individuals are selecting to speculate with different firms as a result of they’ve an issue with how Robinhood has dealt with sure issues.
Why Did Some Buyers Go away Robinhood?
So you recognize Robinhood has confronted some controversy, however possibly you don’t fairly perceive why this buying and selling platform will get all of the hate. Properly, for lots of people, it began with GameStop.
Again in early 2021 when GameStop inventory began skyrocketing (nearly to the moon), buoyed by a meme and a bunch of enthusiastic novice merchants, Robinhood traders had been shopping for shares as quick as they might. With its low buying and selling charges and straightforward breezy interface, this platform was the primary alternative for lots of retail traders attempting to get in on the motion.
Then, on January twenty eighth, Robinhood froze the most popular shares. Particularly, they shut down shopping for and buying and selling of Gamestop (GME), AMC (AMC), Nokia (NOK), and some others, explaining that these shares had been extremely unstable and so they wished to guard their customers. Buyers might solely promote their shares, which was extremely irritating at a time when buying extra might have turned out to be fairly worthwhile.
The shares, in fact, dropped in value, and loads of traders misplaced some huge cash. Many individuals felt that Robinhood was performing in Wall Road’s finest curiosity and giving market makers an opportunity to scramble their means out of the squeeze. There have been calls for sophistication motion lawsuits and the corporate claiming to “democratize finance” was extensively accused of market manipulation.
Since this incident, many people misplaced respect for and belief in Robinhood. And the corporate nonetheless hasn’t recovered, having misplaced billions of {dollars} in 2021 after traders bailed in droves.
Whereas there’s nothing unsuitable with utilizing Robinhood, it may very well be argued that they haven’t at all times acted ethically, and chances are you’ll favor one other platform.
What Is a Robinhood Various Platform?
Regardless of a rocky historical past, Robinhood remains to be a well-liked funding platform. However many individuals are contemplating leaving since they blocked their prospects.
So a Robinhood different is an funding app that’s just like Robinhood in its value and ease however supplies new and distinctive options. These funding apps ought to permit former Robinhood customers to change with ease and possibly get somewhat extra out of their buying and selling expertise.
Who Ought to Use a Robinhood Various?
In the event you’re transferring off of Robinhood, or identical to what they often stand for however wish to look elsewhere, it is best to look into an alternate. Robinhood might have been one of many solely ones providing commission-free buying and selling once they launched, however there have since been a variety of brokerages and apps which have wiped away most of their charges with a purpose to compete and make investing extra accessible since.
Typically talking, Robinhood-like brokers are finest for:
Newer Buyers
Robinhood (and its options) are primarily geared towards newer traders. This isn’t to say that extra superior traders received’t profit from them, although. It simply means they’ve choices, a platform, pricing, and so on. that cater to new traders.
Individuals Who Need To Commerce for Free
Robinhood set the bar with free investing. So in case you’re on the lookout for no-commission trades, taking a look at a Robinhood different platform that I’ve listed above will begin you off in the fitting path (and prevent some cash).
Simply be aware that the caveat to that is extra restricted choices. Numerous easy platforms restrict free buying and selling to a small subset of belongings similar to shares and ETFs.
Individuals Searching for Simple Buying and selling
Whether or not you’re on the lookout for an easy-to-use app otherwise you need one thing utterly hands-off like a robo-advisor, those that are in search of a substitute for Robinhood will need investing to be straightforward. All of the choices listed below are extraordinarily straightforward to get began with and use.
Who Shouldn’t Use a Robinhood Various?
Platforms like Robinhood don’t cowl each sort of investing and could also be lacking sure options and decisions. There are some individuals who won’t discover what they’re on the lookout for in the event that they restrict themselves to Robinhood-like on-line brokers. As a substitute, you would possibly must look into a unique kind of investing platform altogether.
Discover different varieties of investing platforms in case you fall into one of many following classes.
Individuals Who Need To Commerce Crypto
If you wish to commerce cryptocurrency, I like to recommend utilizing a reputable crypto trade like Coinbase. Whereas a few of these brokers do supply crypto (like Webull) your crypto has to stick with the platform. In the event you use an trade, you have got extra possession over your coin.
Associated: Investing in Bitcoin: Every thing You Want To Know Earlier than You Purchase
Superior Buyers and These Who Like To Analysis
Excluding E*TRADE, none of those platforms actually dominate with superior analysis and charting. So in case you’re a day dealer or somebody who desires to do deep, deep analysis, you’ll wish to look elsewhere.
Individuals Who Plan To Make investments a Lot
If for some motive you have got some huge cash to speculate (I’d say $300,000 and up) you would possibly wish to look right into a wealth administration answer, which will provide you with extra tailor-made recommendation and dedication to your cash.
Most Necessary Options of a Robinhood Various
Listed below are the important thing stuff you wish to search for in a Robinhood different platform.
Charges
Be sure to discover a platform that has little to no charges. Normally, there’s going to be some sort of payment for issues like wire transfers and customary SEC charges (like on choices contracts), however for probably the most half, you will discover brokers who received’t cost you buying and selling charges for many or all securities they provide.
Make sure that to learn the phrases and circumstances of the account, in addition to browse the dealer’s charges part of their web site so that you perceive precisely what you may be charged, if something. Typically there are hidden charges if, for instance, you have an IRA and wish to transfer it out in some unspecified time in the future sooner or later.
Cell App
Everyone seems to be on their telephones these days. Make sure that whichever dealer you utilize has an incredible cell app expertise. The app doesn’t must be loaded with options, nevertheless it must be straightforward to navigate, straightforward to make investments, and have some kind of stories part so you possibly can rapidly get nuggets on the happenings within the markets.
In-app buyer assist can be a plus for positive.
Additional Account Choices
You received’t have this with all Robinhood options, however one good factor to search for is further account choices, similar to a checking account or savings account. Stash does this, so does Betterment, and plenty of different brokerages are leaping on board.
The explanation that is useful is that you could hold all your cash, theoretically, with one brokerage/app. As a substitute of getting a checking account someplace, an internet financial savings some other place, and an investment account on an app.