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Robinhood is a popular brokerage app for investors who want to trade cryptocurrency and conventional assets. It’s built a strong reputation for ease of use, but it has a few drawbacks.
Many investors may be better served by other platforms that are tailored to their preferred trading strategies. Let’s take a look at Robinhood alternatives for both crypto investors and conventional traders.
- Forbes Advisor Rating: 3.0 stars
- Trading Commissions: $0 for stocks, ETFs and options
- Account Minimum: $0
Launched in 2013, Robinhood made a name for itself as a no-fee online broker. The platform’s commission-free approach proved so popular that it changed the entire investing landscape. Today, few online brokers charge commissions for basic trading.
Robinhood provides stock, ETF and options trading. Plus, customers can use margin on the platform to leverage their purchasing power. Traders can set up recurring investments and purchase fractional shares. They can also get access to new companies by investing in initial public offerings. Robinhood is even launching a individual retirement account (IRA) option that features a 1% match for contributions.
The platform offers 24/7 customer support and a modest selection of educational materials.
Robinhood offers commission-free trading in 18 cryptocurrencies. Although this doesn’t come anywhere near capturing the range of the entire crypto universe, Robinhood supports the most well-known coins, which should satisfy the needs of crypto beginners.
The platform’s ease of use presents drawbacks, and critics have accused Robinhood of “gamifying” investing. This critique became common during the GameStop saga of 2021.
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$0 for stocks, ETFs and options
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Pros & Cons
- No account minimum, no monthly fee
- Very easy to use
- Allows cryptocurrency and fractional share trading
- Instant access to deposited cash
- App design may encourage active trading, which is not appropriate for most investors
- Delayed price quotes
- Limited education and research tools
- Accepts payment for order flow
- No access to mutual funds or bonds
Robinhood Alternatives: Online Brokers
For traders interested in traditional investment vehicles such as stocks, ETFs and derivatives, the world of online brokers offers Robinhood alternatives that provide more complete investing features.
- Forbes Advisor Rating: 4.3
- Trading Commissions: $0 for stocks, ETFs and options
- Account Minimum: $0
Charles Schwab has an impressive array of offerings for investors. The platform is rated the best for customer service in our best online broker platforms and in our best online broker platforms for beginners.
Schwab offers 24/7 phone support to its customers, as well as email and in-person help at physical branches. The company has robust research and educational offerings, including podcasts, magazines and live events.
This is in stark contrast to Robinhood. Although Robinhood offers phone support and text chat, phone support can be hard to reach. There’s no displayed customer service number, and users need to be signed into their accounts to receive a callback.
Like most online brokers in the post-Robinhood era, Schwab charges no commissions for stock, ETF and option trades. There are contract fees for options as well as additional fees for more advanced trades like commodities futures and over the counter (OTC) equities.
Robinhood does not support futures and only trades approximately 650 American Depository Receipts (ADRs) over the counter.
- Forbes Advisor Rating: 4.4
- Trading Commissions: $0 for stocks, ETFs and options
- Account Minimum: $0
Our best overall online broker platform is Fidelity Investments. Fidelity offers an excellent platform for long-term investors and active traders. In addition, the platform is quite beginner-friendly.
Fidelity offers exceptionally low fees, fractional share trading, and relatively fast order execution speeds, which can help active traders lock in the best prices for their trades.
The Fidelity platform has excellent educational and research materials for seasoned traders and beginning investors alike. This is in contrast to Robinhood where educational materials exist but remain slim.
With an array of managed portfolios and coaching from financial advisors, Fidelity offers a robust support system, far beyond anything Robinhood has the ability to provide.
Like Schwab, Fidelity offers nearly every type of account an individual may need, including Solo 401(k)s for the self-employed and 529 accounts for college savings. Robinhood is only now branching into the world of traditional retirement offerings with its IRA offering.
Robinhood Alternatives: Crypto Exchanges
Robinhood’s cryptocurrency features are limited compared to most exchanges. Investors who are looking for a deeper dive into the cryptosphere may want to check out our listing of the best crypto exchanges.
- Forbes Advisor Rating: 4.6
- Fees: 1.5% flat fee / 0.9% flat fee for stablecoins
- Cryptocurrencies: 120+
Kraken earns the title of our best overall crypto exchange platform.
Although its “instant buy” program charges users a flat fee of 1.5% for cryptocurrencies and 0.9% for stablecoins, users can easily lower those costs by trading on Kraken Pro.
Small volume trades on Kraken Pro can run as little as 0.16% for makers and 0.26% for takers, which is comparable to other exchanges. Some users may find these fees worth it compared to Robinhood when taking Kraken’s more robust offerings into consideration.
Kraken is one of the few U.S. platforms that provides advanced options like margin trading. With margin, customers use leverage to fund their purchases. Robinhood does not offer this feature for cryptocurrency.
Kraken also offers staking, which Robinhood lacks. Staking is a great way for crypto traders to generate passive income on their coins.
Finally, the site contains a wide range of cryptocurrency educational materials, far beyond Robinhood’s offerings, and the company has excellent customer service from its chatbot and phone support.
- Forbes Advisor Rating: 4.5
- Fees: 0.2% maker fee / 0.4% taker fee
- Cryptocurrencies: 120+
Our top crypto exchange for beginners, Gemini, is another good choice for crypto traders.
Gemini offers trading in a similar amount of cryptocurrencies as industry-leader Kraken, more than 120 different coins. This is significantly more than the 18 coins available on Robinhood.
Like Robinhood, Gemini has an easy-to-use interface. However, Gemini’s educational materials are far superior.
Starting at 0.2% for makers and 0.4% for takers, Gemini’s fees are a little higher than other crypto platforms, but Gemini makes up for this with its convenience and ease of use.
Gemini Staking also offers plenty of opportunities for crypto traders to earn passive income on the coins they’re already holding.
The only real disadvantage to the platform are the convoluted, higher-than-average fee structures, which could be difficult to navigate.
Should You Choose Robinhood or an Alternative?
Since it offers the features of both an online broker and a crypto exchange, Robinhood could be a one-stop shop for some investors. However, despite its advantages, the platform has shortcomings.
Who Should Choose Robinhood
The Robinhood app features a user-friendly interface that is intuitive and straightforward. Combine this with the platform’s $0 fees, and users with little to no experience can start trading whenever they’d like.
The cryptocurrency trading features of Robinhood benefit from this simplicity as well, which makes it easy for users to get started with crypto. The platform also supports its own crypto wallet, which is an important part of safe coin storage for crypto investors.
Who Should Choose an Alternative
More advanced traders might not find the tools and products they want on Robinhood, such as commodities futures trading and OTC equities. They also can’t short stocks on the Robinhood platform. Short selling is when trader’s aim to benefit from the decline in an asset’s price.
On the other hand, beginning traders may want more than Robinhood’s very basic educational or research materials. In addition, the company’s customer support options are lacking. This can be detrimental for beginning users.
Investing can be difficult to grasp. Success requires a great deal of knowledge. Robinhood may not provide users with the tools they need.
How to Choose: Online Broker vs. Crypto Exchange
There are many factors stock and crypto investors should take into consideration when choosing platforms.
With cryptocurrencies, the first thing a trader may want to look at are the platform’s fees. For example, fees can vary as significantly as from $0 in the case of Robinhood to 1.5% for Kraken’s instant buy program.
Since most online brokers now offer $0 commissions on simple trades, fees are no longer a consideration for those interested in trading more traditional assets.
Instead, more advanced investors will want to make sure the platform they’re choosing offers the tools they want. These can be features such as commodities and OTC trading in the case of brokers or staking in the case of crypto.
A platform’s educational and support offerings are also something to take into consideration. Robinhood is lacking in both these departments. Those who want more robust offerings here might be better served looking elsewhere.
- TD Ameritrade.
- M1 Finance.
Robinhood provides a bare-bones trading experience, making it a poor choice for investors seeking the best trading platform. Also, Robinhood's stock research tools are lacking when compared to $0 commission brokers such as E*TRADE, Charles Schwab, and Fidelity.Why won't Robinhood approve me for options? ›
Robinhood does not support market orders for options contracts due to greater volatility in the options market relative to equities markets. Placing limit orders will give your order a better chance of being executed at the price you want. This way, you'll know how much you're going to pay to buy a contract.Why is TD Ameritrade better than Robinhood? ›
TD Ameritrade has a wider variety of account types and offers a full-service brokerage. Whereas Robinhood enables investors to purchase fractional shares of stocks, commission-free ETFs, and other investments without a large financial commitment.Should I still trust Robinhood? ›
Robinhood is regulated by the U.S. Securities and Exchange Commission (SEC) and maintains membership in the Financial Industry Regulatory Authority (FINRA). Investment accounts with Robinhood are covered beyond just standard Securities Investor Protection Corp. (SIPC) coverage.Is Moomoo better than Robinhood? ›
Both Moomoo and Robinhood offer commission-free trading for stocks, ETFs, and options. Additionally, both platforms make trading and investing accessible to many people. Although Moomoo might be better suited for those at the intermediate and advanced levels, even beginners can use the app with relative ease.What does Warren Buffett think of Robinhood? ›
Fractional trading brokerages like Robinhood, meanwhile, are “a fly in the ointment,” to Buffett, Robert Bartlett, a professor at the University of California, Berkeley School of Law and co-author of the study. “Buffett wants to keep the price of his Class A shares high to attract long-term value investors,” he said.Is Robinhood available in Canada? ›
There is no Robinhood trading Canada, as it's only available to American citizens for now. Regulators accused Robinhood of “game-ifying” investing and trading, exposing investors to higher trading risks. On some sale orders, regulatory or trading activity fees may still apply.What broker does Warren Buffett use? ›
To summarize, Warren Buffett mostly doesn't use regular brokers like the majority of retail traders around the world. Instead, he prefers to make trades through a private stockbroker like John Freund in order to ensure that his movement is discreet and won't cause huge price swings in the market.Why won t Robinhood let me withdraw my money? ›
If your Robinhood account has a restriction, you may be unable to withdraw funds. Contact us if you want help resolving the issue and removing the restriction.
If your option is in the money, Robinhood will typically exercise it for you at expiration automatically. You can also exercise your options contract early in the app: Navigate to the options position detail screen. Select Exercise.What is level 3 Robinhood? ›
A level III quote allows a person to enter into best execution trades as prices are being updated in real-time. All publicly traded equities have a bid price and an ask price when they are bought and sold. The bid is the highest price an investor is willing to purchase a stock.Do millionaires use TD Ameritrade? ›
What brokerage firms do billionaires use? Many very wealthy individuals use the top brokerage firms, such as Fidelity, Schwab, Vanguard, and TD Ameritrade, among others. They invest in private equity and hedge funds.Why is Fidelity better than Robinhood? ›
Fidelity suits most types of traders since it offers several self-directed and automated account options. However, Robinhood is a better choice for low fees, and it makes more sense for active traders, day traders, options traders, and crypto traders. Is Fidelity or Robinhood better for beginners?Is Charles Schwab better than Robinhood? ›
Charles Schwab is a more traditional brokerage firm that offers multiple account types and a solid mix of traditional asset classes to invest in. Robinhood offers fewer account types, caters to beginner investors, and allows crypto trading, but is missing some more traditional investments.How do I get out of Robinhood? ›
- Select Account (person) → Settings.
- Select Account Information → Deactivate Account.
- Follow the steps to close all your brokerage positions and withdraw your outstanding balance.
- After your balance is $0 and your positions are closed, you can confirm your deactivation request.
Debunking misinformation: Yes, you own the shares you buy through Robinhood.How much debt does Robinhood have? ›
Robinhood Markets net long-term debt for the twelve months ending March 31, 2023 was $0M, a 100% decline year-over-year. Robinhood Markets annual net long-term debt for 2022 was $0B, a 100% decline from 2021. Robinhood Markets annual net long-term debt for 2021 was $3.552B, a INF% increase from 2020.Is Moomoo owned by China? ›
Moomoo is a newer entrant into the U.S. discount brokerage industry, and is owned by a Chinese parent company. That ownership structure shows through in some features of the brokerage's services, such as access to the Hong Kong stock market and China A-shares, both unusual features for American brokers.Is Webull or Robinhood better? ›
18 Webull doesn't provide third party research but does provide more advanced and customizable charting than Robinhood. For technical and day traders seeking advanced and customizable charting, Webull is best. For everyone else, either platform is adequate for basic research.
Moomoo is an online trading platform by the Tencent-backed Chinese parent company, Futu, that allows you to trade on SG, HK, and US markets.Are there any Robinhood millionaires? ›
Robinhood co-founders, Vlad Tenev and Baiju Bhatt, became the world's newest billionaires after the popular, commission-free stock trading app went public last week. And they are now worth $2.1 billion and $2.4 billion, respectively, according to Forbes.What 4 stocks is Warren Buffett investing in? ›
|Apple (AAPL)||Information Technology||1|
|Bank of America (BAC)||Finance||2|
|Cola-Cola (KO)||Consumer Staples||4|
|Nikko Asset Management Americas, Inc.||24,312,135||Mar 30, 2023|
|Blackrock Inc.||23,038,099||Mar 30, 2023|
|Thrive Capital Management, LLC||20,410,961||Mar 30, 2023|
|FMR, LLC||17,592,492||Mar 30, 2023|
Alternatives to the Robinhood App in Canada
Three Canadian alternatives are Qtrade, Wealthsimple Trade and Questrade. We specifically recommend 2 of the three, but the best choice for you depends on your needs and your investing strategy.
That said, Robinhood offers options, IPOs, and ADRs to Americans, which Wealthsimple doesn't offer to Canadians. Plus, the Robinhood trading app offers more advanced trading features and market research tools than the Wealthsimple Trade app.Why do day traders need 25k? ›
In most circumstances, without a minimum balance of $25,000 in your account, you will be limited to making only three-day trades within five business days.Who is the famous stock trader buffet? ›
Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway.What stocks does Warren Buffett own personally? ›
|Stock||Number of Shares Owned||Share Count Increase Over Q4 2022|
|Diageo (NYSE:DEO)||227,750||New position|
|Vitasse Energy (NYSE:VTS)||51,026||New position|
|Bank of America (NYSE:BAC)||1,055,603,406||+2.25%|
Share of Berkshire's Portfolio
Apple is the world's most valuable public company and Warren Buffet's largest stock holding.
Reversals may happen for a few reasons: Insufficient Funds. Wrong Type of Account (doesn't support ACH transactions)When I sell on Robinhood Where is my money? ›
Although you get instant access to your money, the bank withdrawal could happen within 5 business days after you initiate the transfer. To prevent a possible reversal, make sure you have the necessary funds in your bank account for 5 business days after you initiate the bank transfer.How much does Robinhood charge to withdraw? ›
Bank account: No fee for withdrawals. External debit card account: Withdrawals have a 1.5% fee based on the amount being transferred out.What is the most profitable option strategy? ›
A Bull Call Spread is made by purchasing one call option and concurrently selling another call option with a lower cost and a higher strike price, both of which have the same expiration date. Furthermore, this is considered the best option selling strategy.Can Robinhood sell your stock without consent? ›
Your broker cannot sell your securities without getting permission from you. A financial advisor needs the proper authorization to execute any transaction on your brokerage account. Whether it is buying a stock, selling securities, or moving money around, unauthorized trading is a very serious legal violation.Do Robinhood options expire worthless? ›
If the value of the stock stays below your strike price, your options contract will expire worthless. Remember, you're not actually buying shares of the stock unless you exercise your contract. This is because the contract gives you the option to buy the actual shares of the stock at the strike price.What happens when you have 25,000 in Robinhood? ›
This means you can't place any day trades for 90 days unless you bring your portfolio value (excluding any crypto positions) above $25,000.Is Robinhood overpriced? ›
Costs: Robinhood is a true discount broker — although its offerings may not be as robust as some other brokerages, Robinhood has some of the lowest costs in the industry. This includes options trades, which don't carry a contract fee (although options are not currently available in Robinhood's IRAs).What is level 4 options trading? ›
Option approval level 4 involves the sale of short calls and short puts, which are options sold on margin where the potential settlement cost is unlimited.Can I use Robinhood outside US? ›
Can I access my account while I travel overseas? You can access your Robinhood account in almost all countries, with the exception of Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine.
When it comes to overall investment selection, Robinhood is the better choice. You'll be able to trade stocks, ETFs, options, ADRs, and cryptocurrencies. You'll only have access to ETFs at Acorns. Acorns, however, is the stronger choice for socially responsible investing and custodial accounts.Can a non US citizen open a Robinhood account? ›
Be 18 years or older. Have a valid Social Security Number (not a Taxpayer Identification Number) Have a legal U.S. residential address within the 50 states or Puerto Rico (exceptions may apply for active U.S. military personnel stationed abroad) Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa*Do billionaires use Fidelity? ›
What brokerage firms do billionaires use? Many very wealthy individuals use the top brokerage firms, such as Fidelity, Schwab, Vanguard, and TD Ameritrade, among others. They invest in private equity and hedge funds.Do millionaires use Fidelity? ›
The number of 401(k) millionaires in Fidelity-managed plans is relatively small, just shy of 1.4 percent out of 21.5 million accounts. That segment peaked in 2021, at 442,000, with a median balance of $1.3 million, according to Mike Shamrell, vice president for workplace thought leadership for Fidelity.Why is Vanguard better than Robinhood? ›
Vanguard may not be as flashy as Robinhood, but buy-and-hold investors will value the broker's simplicity and reliability. Vanguard is also a better fit for investors who want access to more asset classes, including some of the best (and lowest cost) funds in the business.Can you use Robinhood in Canada? ›
There is no Robinhood trading Canada, as it's only available to American citizens for now. Regulators accused Robinhood of “game-ifying” investing and trading, exposing investors to higher trading risks. On some sale orders, regulatory or trading activity fees may still apply.Can non US citizens use Fidelity? ›
No. Unfortunately, we do not open accounts for any new customers residing outside the United States.Can you use Robinhood with a VPN? ›
Connect to a VPN server in any location suitable for you. Make your first deposit and enjoy Robinhood app!Is Robinhood or Etrade better? ›
E*TRADE is a better option for more active traders, while Robinhood is a satisfying option for new and passive investors.Why is Acorns popular? ›
One feature Acorns is known for is its automated savings tool. Acorns sweeps excess change from every purchase using a linked account into an investment portfolio. You can connect as many cards as you want, though all roundups are taken from the same linked checking account.
So has anyone made money on Acorns? Well, Leora Wexler of Mamaroneck, New York, tells The Krazy Coupon Lady she has seen a 5.38% all-time ROI (return on investment) from using Acorns.Can a Canadian open a US brokerage account? ›
You don't need to be a U.S. citizen to trade in the U.S. stock market. You can open an online trading account with a U.S. broker, even as a foreigner, but more documentation is needed. Alternatively, you can make use of local financial institutions that have access to the U.S stock market.Can a Canadian open a Charles Schwab account? ›
Is Charles Schwab available in Canada? Nope, Charles Schwab is not available in Canada.Can you invest in the US if you are not a citizen? ›
There is no citizenship requirement for owning stocks of American companies. While U.S. investment securities are regulated by U.S. law, there are no specific provisions that forbid individuals who are not citizens of the U.S. from participating in the U.S. stock market.