12 Investing App Alternatives to Robinhood
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Robinhood is one of the best investing apps for beginners who want a friendly and approachable platform with free stock trading and other investment options such as cryptocurrency.
Experienced investors can also be perfectly happy using Robinhood, with options trading and in-depth stock research reports with a Robinhood Gold account for $5 per month.
But sooner or later, you may want to try a different trading platform that’s more robust and offers an investment account that meets more of your needs. These can include buying bonds and funding a retirement account (which Robinhood doesn’t offer) or paying more for an account with more features.
New investors don’t stay newbies forever, right?
Related: Best Acorns Alternatives – Other Investing Apps to Help You Grow Your Finances
In this article
Robinhood alternatives
There are plenty of investing service options. We’ll give quick reviews of 12 of them, highlighting the best parts of each and how they can offer functionality different from Robinhood.
We’ll also go over what to look for in such online brokerages so that you can compare apples to apples and find the best mobile app that fits your needs.
What Robinhood lacks
We don’t mean to pile on Robinhood, but there are some areas where it falls short. That may be what you get for commission-free trading, no account maintenance fees, and no minimum deposit.
But the grass may be greener elsewhere, so Robinhood’s shortcomings could be another trading platform’s selling point. Here are some to consider when shopping for another investing service.
Different accounts
Joint accounts, trusts, and custodial accounts are some types of accounts Robinhood doesn’t offer. These may be important to you if you have a child or spouse.
Retirement accounts, bonds and mutual funds
It also doesn’t offer retirement accounts or IRA products, which help plan for retirement.
Bonds and mutual funds may be a part of your investment strategy, whether planning for retirement or not, and Robinhood doesn’t offer either.
Detailed reports, for a price
The Robinhood Gold account is a good option for more detailed reporting and research at $5 per month. Some sites charge less, and some more, so try out a few sites to see what works best for you. Robinhood’s Gold account includes Level II Market Data, which shows the full depth of orders on the Nasdaq stock market. It also has in-depth stock research reports from Morningstar.
Fees
Robinhood passes on some fees to consumers that it and other online brokers are charged when making sell orders. This isn’t unusual, but you should be aware of these:
- Regulatory transaction fees to cover costs incurred by the government for supervising and regulating the securities market. These include a Securities and Exchange Commission fee of $27.80 per $1 million of principal (sells only). Robinhood doesn’t charge sales with a notional value of $500 or less this fee.
- Trading activity fee of $0.000166 per share for equity shares and $0.00279 per contract for options sells. There’s no fee for buying 50 shares or less.
- American depositary receipt fees of $0.01 to $0.03 per share of foreign stocks.
Goals
Robinhood doesn’t have a goal-based strategy that some of its competitors do, such as preset portfolios to help you retire, fund a home purchase or pay for college, or enact your risky investment goals.
Phone customer support
Robinhood has FAQs and an email link on its website for customer support, whether iOS or Android, but it doesn’t have a phone number to call.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Alternatives to Robinhood
Here are 12 investing apps that are alternatives to Robinhood.
Webull
Experienced, active investors may like Webull for its commitment to day traders with in-depth analysis tools such as Level II Advance analysis of Nasdaq companies. Webull’s desktop platform is customizable, which can help beginners and advanced traders alike. It also sells fractional shares (as Robinhood does) and has retirement accounts. Webull doesn’t charge commissions for trading stocks, options, exchange-traded funds, or ETFs.
E*TRADE
Beginners can get a lot out of E*TRADE, either by managing their finances alone or with help from a robo-advisor. Its robo-advisor platform can create and manage a portfolio for you, which Robinhood doesn’t offer. Along with free trades in the stock market, E*TRADE also offers bonds, CDs, mutual funds, and retirement accounts such as an IRA. Trading options and mutual funds can get expensive, and the site charges for setting up an account through its robo-advisor platform.
Acorns
Acorns is more than a brokerage account. It also has retirement and checking accounts. One feature we especially like is its debit card and the automated investing that comes with it by rounding up purchases. You can increase the roundup amount by up to 10 times, turning a 30-cent transfer from a $2.70 purchase when rounded up to $3 into a $3.30 purchase with 60 cents going toward investing. This type of automated investing can buy fractional shares for you without considering it. Acorns charges $3 to $12 per month for its plans.
Read a full review on Acorns.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Fidelity
Fidelity is another way to manage your finances in one investing service. You can buy stocks, ETFs, mutual funds, open retirement accounts, savings accounts, credit cards, and bill-paying services. Fidelity has a $1 account minimum and doesn’t charge commission fees for trading.
Stash
Stash charges $3 to $9 per month for its services. Beginners can receive an investment account, life insurance, and a bank account with a stock-back debit card. Other plans provide retirement accounts, double stock rewards, and a monthly market insights report. Stash has investment strategies for different risk tolerance levels and will direct you to portfolio options aimed at diversity. Members of one of its top tiers, Stash+, get custodial accounts for up to two children.
M1 Finance
M1 Finance offers a range of services beyond investing. These include loans, free digital checking, and a credit card with up to 10% cash back. It also stands out for its investing options, such as prebuilt investment portfolios it calls “expert portfolios.” Users can also create their investment portfolios by getting stock recommendations based on their goals and investment styles. If you want to earn more dividends, invest in cannabis companies, or invest in companies responsible for the environment, M1 Finance can help you set up your investments that way. It doesn’t charge commission fees on ETFs and stocks but requires a $100 minimum account.
Read a full review on M1 Finance.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Betterment
Betterment says its robo-advisor outperforms financial advisors by 88%. Using your goals, risk tolerance, and other factors, Betterment makes portfolio recommendations, or you can create one on your own using its advice. Betterment offers five portfolios with different risk levels and goals, such as lowering your risk as retirement nears or with socially responsible investing in mind. Betterment has three types of plans at different prices. A checking account with advice and goal-setting tools is free. A digital investing plan has a 0.25% annual fee based on your account balance, equaling $2.50 yearly for every $1,000. The premium investing plan adds in-depth advice on investments from financial professionals for a 0.65% fee for a minimum balance of $100,000.
Ally Invest
Ally Invest has managed portfolios that new investors can use for a hands-off approach. Advanced traders may also benefit from Ally Invest’s diversity of securities and options with low fees on most types of trades. Ally Invest has no account minimums and $0 commissions. It doesn’t offer a cryptocurrency such as Bitcoin for sale.
Coinbase
We’ve called Coinbase the leader in crypto trading and for good reason. From Bitcoin to more than 250 other digital currencies, Coinbase is one of the most popular and largest cryptocurrency exchanges. Users can buy, sell and trade digital assets through Coinbase. FDIC insurance is provided on up to $250,000 in assets. Opening a Coinbase account is free. A transaction fee is 1% on all cryptocurrency transactions. A spread margin of 2% is charged for cryptocurrency conversions.
eToro
Another cryptocurrency trading site is eToro, though it recently started selling stocks and ETFs. It sells 80 types of cryptocurrencies. Digital assets can’t be kept in a digital wallet, however. Users must transfer them to an eToro Money wallet for payments to asset them. The FDIC insures funds for up to $250,000. Users can make trades like eToro’s top crypto traders make through its CopyTrader technology. The site doesn’t charge withdrawal fees, but trading crypto will attract a 1% fee per trade.
SoFi
SoFi was once mostly known for loans and student loan refinancing. It’s now also an investing platform offering many common investment strategies and options, including retirement accounts, ETFs, and fractional shares. It also offers investments in initial public offerings, or IPOs, which is rare among online brokerages. SoFi doesn’t charge trading commission fees.
Charles Schwab
Charles Schwab is a full-featured brokerage for many types of investors. For beginners, it has more than 4,000 no-loan mutual funds with no transaction fee for online trading. It has many analysis tools, phone support and live webchats, and automated investing through a robo-advisor. Charles Schwab has been working since 2019 to make a brokerage account as inexpensive as possible. It has low expense ratios on many of its securities and doesn’t charge commissions for online trades of ETFs, equity, and OTCBB trades. Options trades cost at least $0.65 per contract.
Costs
Many of the investing services we reviewed offer commission-free trading. That’s great if you just want to buy stocks, ETFs, and options, but other investments will likely cost at least a few dollars a month to trade. Cryptocurrency often has the highest costs. We’ve listed some of the costs under each company review above, and you should check a company’s website for updated information on its fees.
Regulatory fees are usually passed on to consumers, and many trading platforms charge service fees of $30 or so for moving your money around.
The extra costs can add up and wipe away the benefits of zero commission fees for trading unless you make enough money from your investments to cover the extra costs.
- Commission free stock trading.
- No account minimum.
- Trade stocks, options, ETFs, and more.
- First stock free.
Pros and cons
Pros
- Using an alternative investment platform to Robinhood can save you money, but the biggest advantage may be finding one with retirement accounts, mutual funds and other investment options that Robinhood doesn’t offer.
- Many other platforms offer preset portfolios based on your goals and risk tolerance, making it easier to diversify your investments and hopefully reach your goals.
- Day traders seeking more in-depth reports and analysis tools are likely to find online brokerages that meet their needs.
Cons
- Watch out for fees. They can eat into your profits. Even a 0.25% annual fee that Betterment charges based on your account balance adds up, as can the $3 to $9 each month that Stash charges.
- Robo-advisors focus on your investments and retirement, not if you have an emergency fund or should focus on getting out of debt before investing in the stock market. If you need the assistance of a human advisor, it can cost extra but may be worth it in the long run.
- Don’t expect a cryptocurrency trading website to ask about how much risk you’re willing to take in investing in crypto.
FAQs
How to choose an investing app?
Choosing the right investing app involves considering several key factors to ensure it meets your needs. First, prioritize apps with a user-friendly interface and easy navigation to make your investing experience smooth and efficient. Look for a wide range of investment options, such as stocks, ETFs, bonds, mutual funds, and cryptocurrencies, and consider if the app allows fractional share investing. Additionally, pay close attention to the fee structure, including trading fees, commissions, and any other hidden charges, to ensure you're not losing significant returns to costs.
Which investing app is ideal for beginners?
Fidelity and Charles Schwab are often recommended for beginners due to their extensive educational resources, user-friendly interfaces, and comprehensive customer support. They also offer a wide range of investment options and research tools.
Do these alternatives offer fractional shares?
Yes, several alternatives, including Fidelity, Schwab, and M1 Finance, offer the ability to purchase fractional shares, allowing investors to buy portions of a stock rather than whole shares.
The bottom line
There are plenty of alternatives to Robinhood if you’re looking beyond commission-free trades. Many other platforms also offer services that Robinhood doesn’t, such as mutual funds, retirement accounts, bonds, and custodial accounts for your children. Some also offer checking accounts and credit cards in an attempt to meet all of your financial needs.
Whatever your needs are, be sure to shop around for the best trading app that has low-cost services and plenty of real-time and educational information to learn about your potential investments.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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