With all of the damaging buzz round Robinhood following their determination to freeze GameStop buying and selling in early 2021, many buyers are selecting different brokerages. However Robinhood paved the way in which 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 assessment one of the best Robinhood options and investing platforms so you’ll find an appropriate substitute for you and begin buying and selling.
Overview of the Greatest Robinhood Alternate options
Model | Greatest for | Minimal stability | Funding choices |
---|---|---|---|
Public | Small-time buyers | $0 | Shares, bonds, mutual funds, ETFs |
E*TRADE | Frequent merchants | $0 | Shares, bonds, mutual funds, ETFs, choices, futures |
M1 | Seasoned buyers | $100 | Shares, ETFs |
Webull | These desirous 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 Make investments | Self-directed buyers | $0 | Shares, bonds, mutual funds, ETFs, choices |
Stash | Non-savers | $0 | Shares, ETFs |
Acorns | Automated investing | $0 | Shares, bonds, ETFs |
Constancy | Full-service investing | $0 for retail brokerage accounts | Shares, bonds, ETFs, CDs, choices, and mutual funds |
Greatest for Small-Time Traders: Public
- Free funding platform
- Fractional investing
- Social parts
Public is a free funding app that’s primarily aimed towards new buyers. They consider serving to people make investments that align with their rules and social selections. 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 immediately in firms with a excessive value per share (suppose, Tesla, Google/Alphabet, Apple). It’s also possible to maintain observe of different customers and their funding methods, comply with particular firms, and get market information reside from consultants.
The Public platform is free and beginner-friendly.
Public says that they’re making an attempt to make the inventory market extra inclusive. And since the app has a social feed, you’ll be able to make investments proper alongside different extra skilled buyers in addition to your pals. That is the place the social facet is available in.
On high of that, Public consists of (verified) public figures (therefore the identify) inside the app. It is 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. It’s also possible to reward fractional shares to others you confer with the app.
Be taught extra about Public or learn our full Public assessment.
Greatest for Frequent Merchants: E*TRADE
- 250 fee-free ETFs
- Hybrid funding choices
- Entry to E*TRADE financial institution
E*TRADE is among 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 additionally choices and mutual funds. You’ll have the power to do intensive analysis if you wish to or just use an ETF screener to discover a match on your funding wants.
These choices make this app nice for learners and extra superior buyers alike. Talking of superior buyers, you’ll be able to improve to the Energy E*TRADE app, which supplies 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 gives without cost. 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, really purchase shares, and extra.
Moreover, you may 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’ll be able to make investments for the lengthy haul in a tax-advantaged account.
Be taught extra about E*TRADE or learn our full assessment.
Associated: How Sensible Investing Might Considerably Decrease Your Taxes
Greatest for Seasoned Traders: M1
- No minimal stability 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 may get each conventional funding providers {and professional} funding steerage. And what I like is that the app permits 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 routinely and let you know the main points, this app makes use of its cutting-edge “pie” system to clarify all your funding choices intimately and aid you make selections for your self. Right here’s the way in which 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 buy a fractional share for every. That manner, you’ll be able to diversify your funding portfolio and spend money on a wide selection of investments with out performing any grueling analysis.
After that, M1 will rebalance your portfolio each time you make an funding, conserving the odds of every slice on observe with what you set. So you probably have 4 investments (4 slices) every at 25% allocation, M1 will make it possible for ratio stays constant as you add extra money to your account.
Compared to Robinhood, M1 fails to purchase and promote shares speedily. In actual fact, there is just one window of time in the course of the day the place M1 purchases shares. You possibly can improve your account to get two time home windows, nevertheless it’s nonetheless restricted. However, it does give you IRA options and a $0 fee stage. In abstract, it’s an easy-to-use resolution to get began with long-term funding.
Be taught extra about M1 or learn our full M1 assessment.
Associated: M1 vs. Robinhood: Which Is Higher for You?
Greatest for These Keen To Be taught: Webull
- A number of evaluation assets
- No commissions
- No minimal stability
Webull is an funding platform, designed for each new and seasoned buyers. It has no charges – together with commissions – apart from some minor wire transfers and SEC charges. This makes it a viable various to Robinhood.
There are lots of issues to love about Webull when in comparison with Robinhood. One characteristic that’s extremely invaluable is that Webull’s app will analyze investments for you, primarily based in your monetary state of affairs, to assist decide which investments are one of the best selections for you. This fashion, 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 properly. For instance, you’ll have entry to a extremely useful observe account that allows you to make trades with pretend cash. This fashion, you’ll be able to observe sure funding methods earlier than you’re taking them reside in your actual Webull account. Then when you’re pleased with a plan of assault, you should use these techniques on actual investments with actual cash.
Webull additionally has further options for elevated flexibility, like after-hours buying and selling (for sure account varieties) and detailed info on just about any asset you need to spend money on. Their charting and different analysis choices are additionally pretty strong, particularly contemplating it’s a free platform. And lastly, like Robinhood, Webull has no minimal stability to get began.
Be taught extra about Webull or learn our full assessment.
Greatest for Intermediate-Stage Merchants: TD Ameritrade
- Nice for brand new or skilled buyers
- Complete buying and selling choices
- No commissions
I discover TD Ameritrade to be among the best general brokerages on the market – not simply in comparison with Robinhood. That stated, TD Ameritrade is a superb various to Robinhood, for the proper 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 complicated). TD Ameritrade finds a pleasant stability between usability and analysis choices so you’ll be able to shortly select shares to spend money on.
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’ll be able to shortly discover something you’re searching for and make investments immediately.
Be taught extra about TD Ameritrade or learn our full assessment.
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 stated, they’re an excellent substitute for Robinhood purely due to the simplicity they provide. Betterment is among the solely robo-advisors that has no minimal deposit – so individuals coming from Robinhood will most likely like that.
Betterment additionally provides a checking and financial savings account (known as their Money account) for free of charge. If you join, you’ll undergo a collection of questions that assist Betterment perceive your objectives and general threat tolerance.
From there, Betterment will craft a novel portfolio of ETFs that they’ll routinely handle for you. And as your life modifications, your objectives will change. So you’ll be able to modify your funding technique at any time sooner or later.
The Betterment app may be very simple to make use of, too. On the draw back, you’ll be able to’t decide particular person shares as you’ll be able to with Robinhood, and the platform isn’t completely free (Betterment costs a 0.25% administration price). However this platform is quite a bit simpler to make use of than Robinhood.
Be taught extra about Betterment or learn our full assessment.
Associated: Are Robo-Advisors Value It? A Full Information
Greatest for Self-Directed Traders: Ally Make investments
- No commissions
- Easy dashboard
- Robo portfolios choice
Ally Make investments’s simplified funding platform makes it a viable various to Robinhood. Whilst you don’t should 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 most 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’ll be able to with Robinhood, you’ll be able to 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 supplies you a pre-built portfolio and acts extra like a robo-advisor.
The dashboard is clear and simple to navigate, too. From the dashboard, you’ll be able to see your earnings and losses and simply make investments.
Moreover, you should buy not solely shares and ETFs but additionally mutual funds, bonds, and choices with Ally Make investments. All are utterly commission-free, although choices contracts do have a small price for executing.
Be taught extra about Ally Make investments or learn our full assessment.
Greatest for Non-Savers: Stash
- Full banking options
- Automated choices
- Useful steerage
Stash isn’t completely free like among 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 price noting). That stated, the Stash app is superior. It’s simple to make use of and jogs my memory lots of Robinhood in the way in which 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 kinds of accounts – Progress ($3/month) and Plus ($9/month). Every has further options which will or could not apply to you (like investing for kids with the Plus stage). Nevertheless should you’re simply searching for a Robinhood substitute, the $3 Progress stage 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 every little thing housed in a single app makes managing your funds a breeze.
Be taught extra about Stash or learn our full assessment.
Associated: The Professionals and Cons of “Spare Change” Funding Apps
Disclaimer – Paid non-client endorsement. See Apple App Retailer and Google Play opinions. View vital disclosures.
Funding advisory providers provided 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 threat.
¹For securities priced over $1,000, buy of fractional shares begin at $0.05.
²Debit Account Providers supplied 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 supplied 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 numerous ancillary providers charged by Stash and the custodian.
⁴Other charges apply to the debit account. Please see Deposit Account Settlement for particulars.
⁵Stock-Again® just isn’t 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 satisfy any inventory rewards earned by 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’ll be able to schedule recurring transfers from a linked account for as little as $5 a month and arrange Spherical Ups to take a position 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. Slightly than constructing your portfolio your self, you’ll select one among 5 pre-made portfolios made up of ETFs. You’ll begin by answering just a few 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 permits you to spend money on fractional shares. This makes it doable to have a well-diversified portfolio even should you solely have slightly cash to take a position, with greater than 7,000 completely different shares and bonds out there. And the Acorns app is simply as simple to make use of as Robinhood, if not simpler.
This seemingly isn’t the proper funding account for superior merchants who need to select particular person investments for themselves, nevertheless it’s an amazing match for individuals who need to make investments on a smaller scale and save with out fascinated by 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 assessment.
Greatest for Full-Service Investing: Constancy
- No commissions on U.S. shares, ETFs, and choices
- Instructional assets
- Advisory providers (for an extra value)
Constancy provides self-directed investing and commission-free inventory, ETF, and choice buying and selling. This platform is good for individuals seeking to do extra than simply commerce shares because it provides extra account varieties than many on-line brokers, superior buying and selling choices, and loads of analysis instruments.
In contrast to Robinhood, Constancy additionally permits you to spend money on 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 out there.
In the event you like the concept of fractional share buying and selling, you’ll like Constancy. Plus, there are not any account minimums required to commerce.
Total, Constancy has a way more complete platform and suite of providers than Robinhood. It additionally has the benefit of being an enormous firm with a stable status and almost $10 trillion in property.
This won’t be the proper brokerage account for you should you’re model new to investing because it’s not as beginner-friendly as among the different funding accounts we’ve talked about and generally is a little intimidating. However should you’re a DIY investor with some expertise below your belt, you’ll most likely respect Constancy’s depth and wide selection of providers.
Be taught extra about Constancy or learn our full assessment.
Associated: Constancy vs. Robinhood: Is One a Clear Winner?
How I Got here up With This Record
To search out one of the best Robinhood options, there have been just a few main elements I thought of:
Commissions
Since Robinhood actually opened the door for $0 commissions, I needed to seek out brokerages that provided buying and selling without cost. 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 cause they obtained so standard so quick – their cell app gamifies the funding expertise. I regarded 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 residence.
Further Options
Robinhood has additional options like the power to spend money on crypto or utilizing Robinhood Snacks – their information feed that I completely love. When searching for appropriate replacements, I needed to verify every choice had a novel characteristic or two so you may have choices.
What Is Robinhood?
Earlier than we get into why you won’t need 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 needed to create a platform that might make it doable 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 can commerce shares with out paying fee charges and purchase into giant firms with fractional shares. Robinhood additionally made it simple to study investing and entry real-time market information. This was all new and novel again in 2013, however now there are lots of beginner-friendly on-line brokerage accounts with related options and advantages.
Though Robinhood continues to be very a lot in enterprise, increasingly more individuals are selecting to take a position with different firms as a result of they’ve an issue with how Robinhood has dealt with sure issues.
Why Did Some Traders Depart Robinhood?
So you understand Robinhood has confronted some controversy, however possibly you don’t fairly perceive why this buying and selling platform will get all of the hate. Effectively, for lots of people, it began with GameStop.
Again in early 2021 when GameStop inventory began skyrocketing (virtually to the moon), buoyed by a meme and a bunch of enthusiastic novice merchants, Robinhood buyers had been shopping for shares as quick as they might. With its low buying and selling charges and simple breezy interface, this platform was the primary selection for lots of retail buyers making an attempt to get in on the motion.
Then, on January twenty eighth, Robinhood froze the most well liked 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 they usually needed to guard their customers. Traders 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, after all, dropped in worth, and lots of buyers misplaced some huge cash. Many individuals felt that Robinhood was performing in Wall Avenue’s finest curiosity and giving market makers an opportunity to scramble their manner 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 buyers bailed in droves.
Whereas there’s nothing fallacious with utilizing Robinhood, it could possibly be argued that they haven’t at all times acted ethically, and it’s possible you’ll choose one other platform.
What Is a Robinhood Different Platform?
Regardless of a rocky historical past, Robinhood continues to be a well-liked funding platform. However many individuals are contemplating leaving since they blocked their prospects.
So a Robinhood various is an funding app that’s much like Robinhood in its value and ease however gives new and distinctive options. These funding apps ought to permit former Robinhood customers to modify with ease and possibly get slightly extra out of their buying and selling expertise.
Who Ought to Use a Robinhood Different?
In the event you’re shifting off of Robinhood, or identical to what they often stand for however need to look elsewhere, it’s best to look into another. Robinhood could have been one of many solely ones providing commission-free buying and selling after they launched, however there have since been quite a lot of brokerages and apps which have wiped away most of their charges as a way to compete and make investing extra accessible since.
Usually talking, Robinhood-like brokers are finest for:
Newer Traders
Robinhood (and its options) are primarily geared towards newer buyers. This isn’t to say that extra superior buyers received’t profit from them, although. It simply means they’ve choices, a platform, pricing, and many others. that cater to new buyers.
Individuals Who Need To Commerce for Free
Robinhood set the bar with free investing. So should you’re searching for no-commission trades, a Robinhood various platform that I’ve listed above will begin you off in the proper path (and prevent some cash).
Simply notice that the caveat to that is extra restricted choices. Numerous easy platforms restrict free buying and selling to a small subset of property similar to shares and ETFs.
Individuals Searching for Simple Buying and selling
Whether or not you’re searching for an easy-to-use app otherwise you need one thing utterly hands-off like a robo-advisor, those that are looking for an alternative choice to Robinhood will need investing to be simple. All of the choices listed below are extraordinarily simple to get began with and use.
Who Shouldn’t Use a Robinhood Different?
Platforms like Robinhood don’t cowl each type of investing and could also be lacking sure options and selections. There are some individuals who won’t discover what they’re searching for in the event that they restrict themselves to Robinhood-like on-line brokers. As an alternative, you would possibly must look into a unique sort of investing platform altogether.
Discover different kinds of investing platforms should 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 change 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 change, you may have extra possession over your coin.
Associated: Investing in Bitcoin: Every thing You Want To Know Earlier than You Purchase
Superior Traders and These Who Like To Analysis
Excluding E*TRADE, none of those platforms actually dominate with superior analysis and charting. So should you’re a day dealer or somebody who desires to do deep, deep analysis, you’ll need to look elsewhere.
Individuals Who Plan To Make investments a Lot
If for some cause you may have some huge cash to take a position (I’d say $300,000 and up) you would possibly need to look right into a wealth administration resolution, which provides you with extra tailor-made recommendation and dedication to your cash.
Most Necessary Options of a Robinhood Different
Listed below are the important thing stuff you need to search for in a Robinhood various platform.
Charges
Ensure you discover a platform that has little to no charges. Normally, there’s going to be some type of price for issues like wire transfers and commonplace SEC charges (like on choices contracts), however for probably the most half, you’ll find brokers who received’t cost you buying and selling charges for many or all securities they provide.
Ensure 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. Generally there are hidden charges if, for instance, you may have an IRA and need 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. Ensure that whichever dealer you employ has an amazing cell app expertise. The app doesn’t must be loaded with options, nevertheless it ought to be simple to navigate, simple to make investments, and have some sort of stories part so you’ll be able to shortly get nuggets on the happenings within the markets.
In-app buyer assist can be a plus for positive.
Further Account Choices
You received’t have this with all Robinhood options, however one good factor to search for is additional account choices, similar to a checking account or financial savings account. Stash does this, so does Betterment, and plenty of different brokerages are leaping on board.
The rationale that is useful is that you may maintain all your cash, theoretically, with one brokerage/app. As an alternative of getting a checking account someplace, an internet financial savings some other place, and an funding account on an app.