Top 10 Online Brokers Comparable to Robinhood

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Back in the day, traditional online brokerages were pretty intimidating for newbie investors. That’s why so many people flocked to Robinhood when it came out in late 2014. The mobile-only brokerage introduced cool features that drew young investors with its easy-to-use app and commission-free trades. Plus, Robinhood didn’t require any account minimums, so even those with just a little money could start investing. This was a big deal since many platforms required high account minimums and charged hefty trading fees.

Robinhood’s popularity surged during the COVID-19 pandemic, but the meme stock rallies changed things. While the app brought in millions of new users, many felt let down when the company restricted meme stock trading. People who saw investing as a movement felt betrayed, and Robinhood ended up losing $3.69 billion in 2021. The backlash didn’t stop there; FINRA fined Robinhood $70 million for misleading customers and experiencing system outages. Critics also accused the company of encouraging risky marginal trading and treating investing like a game.

In response, Robinhood ramped up its educational resources and customer service, but many thought these changes came too late. Although it remains a solid option for new investors, plenty of other platforms have emerged as great alternatives.

Over the years, lots of competitors have popped up offering similar benefits. Here are ten top Robinhood alternatives if you’re in the market for a new online broker:

1. Fidelity: One of the biggest US brokerages, Fidelity offers a range of IRA accounts and research tools that Robinhood lacks. There are no commission fees for stocks and ETFs, no account minimums, and they have a well-rated mobile app. However, unlike Robinhood, Fidelity charges for options contracts and currently doesn’t support cryptocurrency trading.

2. Charles Schwab: With the ability to manage all your finances in one place, Schwab offers $0 commission stock and ETF trades and no account minimums. They provide extensive educational resources, traditional financial advisors, and 24/7 customer service. Though they don’t support cryptocurrency trading, their retirement accounts could be a better fit for long-term planners.

3. Public: This app launched in 2019 and focuses on social trading. Like Robinhood, it offers free stock trades, fractional shares, and cryptocurrency trading. Public stands out with its community features, allowing users to follow other investors and join group discussions. They also avoid the controversial Payment for Order Flow model.

4. M1 Finance: Combining traditional investment services with robo-advising, M1 Finance offers customizable portfolios and automation. You can even access banking services, a high-interest checking account, and the M1 Borrow feature for margin loans. M1 Finance isn’t ideal for day trading but works well for long-term investors.

5. Q.ai: For a hands-off approach, Q.ai uses AI to manage your investments. Their “kits” are customized with stocks and ETFs based on different themes. It’s free to use and continually updated to keep up with market trends. Q.ai’s AI-powered approach ensures your portfolio matches your risk tolerance and preferences.

6. Ally Invest: Allied with a bank, Ally Invest is a full-featured brokerage offering $0 stock and ETF commissions and no account minimums. They also have a robo-advisor service and a wide selection of mutual funds. However, they don’t support cryptocurrency trading.

7. Webull: Aimed at more advanced investors, Webull offers commission-free trades, options, and crypto. It has detailed analysis tools and a simulator for practice trading. Unlike Robinhood, Webull supports short selling for those with margin accounts.

8. Stash: Great for beginners planning long-term investments, Stash provides stock and ETF options without the complexity of day trading or options contracts. It even offers a unique debit card that gives stock rewards from your purchases.

9. Stockpile: Known for fractional shares and gifting stock, Stockpile is perfect for introducing kids to investing. You can buy gift cards representing shares in popular companies and give them to friends and family.

10. SoFi Invest: With both DIY and automated investing options, SoFi Invest caters to novice investors. Fractional shares are traded daily, and their robo-advisor helps set up automated investment plans based on your goals.

To sum it up, these are our favorite alternatives to Robinhood. Many platforms have matched or exceeded the features that once made Robinhood so appealing. With the fallouts from the GameStop stock events, many investors are hunting for new platforms, especially those focusing on educational resources. It’s important to weigh the pros and cons of each option to find the one that fits your current financial needs.