With all of the destructive buzz round Robinhood following their resolution to freeze GameStop buying and selling in early 2021, many traders 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 overview the most effective Robinhood options and investing platforms so you could find an acceptable alternative for you and begin buying and selling.
Overview of the Greatest Robinhood 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 wanting 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 elements
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 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 straight away in firms with a excessive value per share (assume, Tesla, Google/Alphabet, Apple). You may also preserve 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 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 traders in addition to your folks. That is the place the social facet is available in.
On prime of that, Public contains (verified) public figures (therefore the title) inside the app. It is a lot like how Twitter and Instagram confirm celebrities and high-profile people. You’ll be able to then see what these persons are investing in, watch their buying and selling exercise, and both pull concepts from their strikes or copy their portfolios fully.
Proper now, Public is providing a $10 bonus for signing up and making an preliminary deposit. You may also reward fractional shares to others you check with the app.
Be taught extra about Public or learn our full Public overview.
Greatest for Frequent Merchants: E*TRADE
- 250 fee-free ETFs
- Hybrid funding choices
- Entry to E*TRADE financial institution
E*TRADE is without doubt 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 additionally choices and mutual funds. You’ll have the flexibility to do in depth analysis if you wish to or just use an ETF screener to discover a match in your funding wants.
These choices make this app nice for novices and extra superior traders alike. Talking of superior traders, you’ll be able to improve to the Energy E*TRADE app, which provides you entry to extra intricate buying and selling methods, in addition to the flexibility to commerce futures.
I additionally actually like the tutorial info E*TRADE supplies at no cost. Should you’re a brand new investor, these sources will assist train you the right way 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’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 overview.
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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 widely known free funding service in addition to an fascinating rival to Robinhood. With M1, you will get each conventional funding companies {and professional} funding steering. 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 standard brokerage and a robo-advisor. Nevertheless, versus another apps or robo-advisors that make investments your cash routinely and let you know the small print, this app makes use of its cutting-edge “pie” system to elucidate your whole funding choices intimately and show you how to 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 an alternative of requiring you to purchase the total share, you should purchase a fractional share for every. That approach, you’ll be able to diversify your funding portfolio and put money into a wide selection of investments with out performing any grueling analysis.
After that, M1 will rebalance your portfolio each time you make an funding, retaining the odds of every slice on monitor with what you set. So if in case you have 4 investments (4 slices) every at 25% allocation, M1 will ensure that 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 through the day the place M1 purchases shares. You’ll be able to improve your account to get two time home windows, but it surely’s nonetheless restricted. Nonetheless, 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 overview.
Associated: M1 vs. Robinhood: Which Is Higher for You?
Greatest for These Keen To Be taught: Webull
- Plenty of evaluation sources
- No commissions
- No minimal steadiness
Webull is an funding platform, designed for each new and seasoned traders. It has no charges – together with commissions – excluding some minor wire transfers and SEC charges. This makes it a viable various to Robinhood.
There are a variety 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 state of affairs, to assist decide which investments are the most effective selections for you. This manner, you don’t spend all day deciding on every funding and might as an alternative make fast, knowledgeable selections.
Webull additionally works laborious to make sure its clients 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 manner, you’ll be able to observe sure funding methods earlier than you’re 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 overview.
Greatest for Intermediate-Stage Merchants: TD Ameritrade
- Nice for brand spanking new or skilled traders
- Complete buying and selling choices
- No commissions
I discover TD Ameritrade to be top-of-the-line general brokerages on the market – not simply in comparison with Robinhood. That stated, TD Ameritrade is a superb various 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 novices) and E*TRADE (the place novices can make investments, but it surely’s most likely a bit too highly effective and sophisticated). TD Ameritrade finds a pleasant steadiness between usability and analysis choices so you’ll be able to shortly select shares to put money into.
The platform is simple 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 on the lookout for and make investments straight away.
Be taught extra about TD Ameritrade or learn our full overview.
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 totally different than some others on this listing. That stated, they’re a superb alternative for Robinhood purely due to the simplicity they provide. Betterment is without doubt one of the solely robo-advisors that has no minimal deposit – so folks 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. Once you join, you’ll undergo a collection of questions that assist Betterment perceive your objectives and general danger 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 fees a 0.25% administration charge). However this platform is rather a lot simpler to make use of than Robinhood.
Be taught extra about Betterment or learn our full overview.
Associated: Are Robo-Advisors Price It? A Full Information
Greatest for Self-Directed Buyers: Ally Make investments
- No commissions
- Easy dashboard
- Robo portfolios possibility
Ally Make investments’s simplified funding platform makes it a viable various to Robinhood. Whilst you don’t have to be an Ally Financial institution buyer to enroll, having a number of accounts with this financial institution permits for full integration.
There aren’t any charges with Ally Make investments and it has most of the options that Robinhood doesn’t have. First is the flexibility to have both a self-directed account or a managed account. If you wish to select your personal 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 possibility, which provides 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 purchase not solely shares and ETFs but additionally mutual funds, bonds, and choices with Ally Make investments. All are fully commission-free, although choices contracts do have a small charge for executing.
Be taught extra about Ally Make investments or learn our full overview.
Greatest for Non-Savers: Stash
- Full banking options
- Automated choices
- Useful steering
Stash isn’t completely free like a few of the others on this listing. Its entry-level plan is $3 per 30 days, and also you’ll want not less than $5 to start out 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 a variety of Robinhood in the way in which it’s designed. You should purchase shares and ETFs with Stash and make the most of fractional shares for higher diversification at a decrease value.
Stash has two sorts of accounts – Progress ($3/month) and Plus ($9/month). Every has extra options which will or could not apply to you (like investing for kids with the Plus stage). Nevertheless in case you’re simply on the lookout for a Robinhood alternative, the $3 Progress stage ought to greater than suffice.
Stash is superb for novices 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 overview.
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 provided by Stash Investments LLC, an SEC registered funding adviser. This materials has been distributed for informational and academic functions solely, and isn’t supposed as funding, authorized, accounting, or tax recommendation. Investing entails 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 Might 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 companies charged by Stash and the custodian.
⁴Other charges apply to the debit account. Please see Deposit Account Agreement for particulars.
⁵Stock-Again® shouldn’t 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 accountability 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 will help 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 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 in a different way than Robinhood. Reasonably 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’ll be able to both go along with this one or select one other.
Like Robinhood, Acorns permits you to put money into fractional shares. This makes it potential to have a well-diversified portfolio even in case you solely have a bit cash to speculate, with greater than 7,000 totally 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 fitting funding account for superior merchants who wish to select particular person investments for themselves, but it surely’s an awesome 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 overview.
Greatest for Full-Service Investing: Constancy
- No commissions on U.S. shares, ETFs, and choices
- Instructional sources
- Advisory companies (for a further value)
Constancy provides self-directed investing and commission-free inventory, ETF, and possibility buying and selling. This platform is good for folks trying to do extra than simply commerce shares because it provides extra account sorts than many on-line brokers, superior buying and selling choices, and loads of analysis instruments.
In contrast to Robinhood, Constancy additionally permits you to put money into bonds, CDs, and mutual funds. A few of these include buying and selling charges, however there are a selection of ZERO expense ratio index mutual funds out there.
Should you like the thought of fractional share buying and selling, you’ll like Constancy. Plus, there aren’t 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 may not 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 generally is a little intimidating. However in case you’re a DIY investor with some expertise beneath your belt, you’ll most likely admire Constancy’s depth and big selection of companies.
Be taught extra about Constancy or learn our full overview.
Associated: Constancy vs. Robinhood: Is One a Clear Winner?
How I Got here up With This Record
To search out the most effective Robinhood options, there have been a number of major elements I thought of:
Commissions
Since Robinhood actually opened the door for $0 commissions, I needed to search out brokerages that provided buying and selling at no 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 purpose they acquired so fashionable so quick – their cellular app gamifies the funding expertise. I appeared for brokerages that had a clear and easy-to-use cellular app in addition to a helpful desktop possibility if you wish to make investments from residence.
Further Options
Robinhood has further options like the flexibility to put money into crypto or utilizing Robinhood Snacks – their information feed that I completely love. When on the lookout for appropriate replacements, I needed to ensure every possibility had a novel function or two so you might have choices.
What Is Robinhood?
Earlier than we get into why you may not 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 needed to create a platform that may make it potential for anybody to start out investing, irrespective of how a lot cash or expertise that they had.
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 find out about investing and entry real-time market knowledge. This was all new and novel again in 2013, however now there are a variety 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 persons 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 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 (nearly to the moon), buoyed by a meme and a bunch of enthusiastic newbie merchants, Robinhood traders have been shopping for shares as quick as they may. With its low buying and selling charges and simple breezy interface, this platform was the primary alternative for lots of retail traders making an attempt 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 have been extremely risky they usually needed 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 worth, and a variety of traders misplaced some huge cash. Many individuals felt that Robinhood was performing in Wall Avenue’s greatest curiosity and giving market makers an opportunity to scramble their approach out of the squeeze. There have been calls for sophistication motion lawsuits and the corporate claiming to “democratize finance” was broadly accused of market manipulation.
Since this incident, many of us 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 could possibly be argued that they haven’t at all times acted ethically, and you might favor one other platform.
What Is a Robinhood Various Platform?
Regardless of a rocky historical past, Robinhood remains to be a preferred funding platform. However many individuals are contemplating leaving since they blocked their clients.
So a Robinhood various 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 enable former Robinhood customers to modify with ease and possibly get a bit extra out of their buying and selling expertise.
Who Ought to Use a Robinhood Various?
Should you’re shifting off of Robinhood, or identical to what they often stand for however wish to look elsewhere, you must look into an alternate. Robinhood could have been one of many solely ones providing commission-free buying and selling once they launched, however there have since been a lot 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 greatest 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 forth. 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, a Robinhood various platform that I’ve listed above will begin you off in the fitting route (and prevent some cash).
Simply notice that the caveat to that is extra restricted choices. A number of easy platforms restrict free buying and selling to a small subset of belongings comparable to shares and ETFs.
Individuals In search of Straightforward Buying and selling
Whether or not you’re on the lookout for an easy-to-use app otherwise you need one thing fully hands-off like a robo-advisor, those that are looking for a substitute for 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 Various?
Platforms like Robinhood don’t cowl each sort of investing and could also be lacking sure options and selections. There are some individuals who may not discover what they’re on the lookout for in the event that they restrict themselves to Robinhood-like on-line brokers. As an alternative, you may must look into a distinct kind of investing platform altogether.
Discover different sorts 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 provide crypto (like Webull) your crypto has to stick with the platform. Should you use an trade, you might have extra possession over your coin.
Associated: Investing in Bitcoin: The whole lot You Want To Know Earlier than You Purchase
Superior Buyers and These Who Like To Analysis
Except E*TRADE, none of those platforms actually dominate with superior analysis and charting. So in case you’re a day dealer or somebody who needs to do deep, deep analysis, you’ll wish to look elsewhere.
Individuals Who Plan To Make investments a Lot
If for some purpose you might have some huge cash to speculate (I’d say $300,000 and up) you may wish to look right into a wealth administration resolution, which offers you extra tailor-made recommendation and dedication to your cash.
Most Essential Options of a Robinhood Various
Listed here are the important thing belongings you wish to search for in a Robinhood various platform.
Charges
Ensure you discover a platform that has little to no charges. Often, there’s going to be some sort of charge for issues like wire transfers and commonplace SEC charges (like on choices contracts), however for probably the most half, you could find 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 situations 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 sooner or later sooner or later.
Cell App
Everyone seems to be on their telephones these days. Make sure that whichever dealer you employ has an awesome cellular app expertise. The app doesn’t should be loaded with options, but it surely ought to be simple to navigate, simple to make investments, and have some kind of reports part so you’ll be able to shortly get nuggets on the happenings within the markets.
In-app buyer help can also 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 further account choices, comparable 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 which you can preserve your whole cash, theoretically, with one brokerage/app. As an alternative of getting a checking account someplace, a web based financial savings someplace else, and an investment account on an app.