Many investors are interested in new brokerages. Robinhood is facing a lot of criticism over its influence on meme stocks. The retail investors of Robinhood missed out on making money because of the company’s outages and restrictions. That is why here are some of the alternatives to Robinhood. These are the platforms that are accepting new users. Know what is Robinhood and also about Robinhood Alternatives.
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What is Robinhood?
Robinhood Markets, Inc is a well-known American financial services company located in Menlo Park, California. It is known for the commission-free trades of stocks, exchange-traded funds, and cryptocurrencies through the mobile app. It was introduced in 2015. Further, Robinhood is a FINRA-regulated broker-dealer. The revenues of the company come from three major sources, interest earned on customers’ cash balances, selling order information to high-frequency traders. Over 1.6 million users are on the waitlist to use its cryptocurrency wallet.
Robinhood is founded in April 2013 by Vladimir Tenev and Baiju Bhatt. The company is named Robinhood because its mission is to provide everyone with access to the financial markets. Over the years the company has got stuck in many controversies.
On January 28, 2021, Robinhood and other retailers such as Wedbull restricted the trading of certain stocks after the users of the r/wallstreetbets subreddit drove up its price. Robinhood restricted trading in the stocks to meet collateral requirements at their clearinghouse. But this decision was condemned by the internet users on subreddit and Twitter.
After this controversy, the Robinhood app suffered an influx of one-star reviews. Google deleted over 100,000 such reviews and described them as “coordinated or inorganic”. Many protestors also showed up at the Robinhood headquarters in Menlo Park, California.
9 Robinhood Alternatives You can check
One of the best Robinhood alternatives E*TRADE is one of the best and powerful discount traders. This platform works well and is most suitable for active day traders, derivatives traders, and people saving for retirement. The investors can trade on mobile, use the website and also contact the 24/7 support line. You can try E*TRADE’s range of trading tools, charts, or indicators. This app also keeps the fees low. It offers free stock, ETF, and mutual fund trades. Besides, there is $0.65 per contract on options and users can get a discount of $0.50. Free treasuries also are available.
Webull is useful to intermediate and experienced investors. The short-term and the active traders will be able to save a considerable amount on commissions. The intuitive feature of Webull is advanced for novice traders. But you can still learn from the platform. It provides a series of trading courses and a trading simulator that has real-time data and advanced charting capabilities. The features can suit beginning traders who prefer to learn many details about the market.
Further, these features are suitable for amateur investors. The platform is available as a mobile web-based and desktop app. The tools available in this platform offer information and insights to make trades profitable.
TradeStation Robinhood alternative provides commission-free stock with an easy-to-use platform. So in every way the TradeStation is a great Robinhood alternative. Along with the stocks and options, the users can trade futures, bonds, and mutual funds. It offers two benefits, one is TS GO and the second is TS Select. That is why many are rating TradeStation as the best platform. Further, it also offers a plethora of educational materials to make its investors smart investors.
3. SoFi Active Investing
SoFi Active Investing is specifically designed for young investors. This platform offers free trades of stocks and exchange-traded funds. In this platform, the investors can buy and sell Bitcoin and Ethereum. There are also fractional shares of big-time companies like Amazon and Netflix. The young investors can also receive member benefits such as free educational seminars and meetings. There is no account minimum so it is easy to begin.
5. TD Ameritrade
TD Ameritrade is a well-known online brokerage. It went commission-free in 2019 but it quickly became a robust platform. It offers more trading options than Robinhood. Also, TD Armitage is one of the easy-to-use platforms. The users can benefit from both mobile and desktop. You can research stocks and get the opportunity to make use of many tools. It helps you to become a better investor.
This platform is created for smart trading. You can benefit from the low fees. The mobile platform has built its tools properly. It is free and effortless to use so it is suitable for new and seasoned Moomoo. There is a host of research tools that helps to make smart investment decisions. There is a paper trading feature that contains real-time data. It stimulates the investment experience before you go deep.
Moomoo also helps investors to invest at a time convenient for them. You will be able to initiate the trades on the go. Also, a customized set-up can sync with different devices. There is no minimum deposit to open the account.
7. M1 Finance
This is a free automated investing service. It presents a hybrid platform that is a mix between traditional investment management services and Robo-advisor. It is not like the other Robo-advisors but offers you full control of your investment options. It makes use of a unique pie system. After signing up, you will be asked to finish an interview about your financial goals and savings. Then you will get a suggested “pie”.
Each of the pie has 100 different investment slices. It makes it easy to create a diverse portfolio without the need for research. You will be able to add stocks to the trade on New York Stock Exchange or NASDAQ.
M1 Finance adds great emphasis on regular and consistent investing. In this way, you can set up automatic contributions. It takes care of the distribution and rebalancing. But M1 is not suitable for day traders. The platform does not permit you to buy and sell stocks as quickly as you wish. But it offers a clean and simple way to start long-term investments. By using the IRA options the M1 Finance offers an easy solution to long-time savings.
Public has a social network that helps you to earn fractional shares of the stocks and ETFs. You can follow others and share ideas with the community of investors. It also makes it easy for you to understand the stock market. It is inclusive so it offers ease of use. Build a portfolio of your terms by investing in the stocks.
9. Interactive brokers
For frequent traders, the Interactive broker is the best platform. It offers research tools and functionality for investors. They offer some of the lowest fees on the market. The investors can be expected to pay $0.005 per share when selling or buying. It is lower than the other brokerage firms. The trader workstation in Interactive Brokers is an in-depth and comprehensive trading platform. Its charts are easy to view and examine. Besides their mobile app is great and designed with the frequent professional trader in mind. If you are looking forward to taking your career to the next level then this is the best option.
These are the best Robinhood alternatives you can try. Enjoy your investing career and get profits.
Also read: Best Bitcoin Trading Platforms