Robinhood is a free brokerage firm and desktop platform that offers commission-free stock, ETF, and crypto trades. The company was established in 2013 by Baiju Bhatt and Vlad Tenev, Stanford Graduate School of Business classmates. Robinhood has also partnered with prominent investors like Andreessen Horowitz and Google Ventures. Unlike most major brokerage firms, this company lacks a full-service stock trading platform. Instead, it offers a straightforward and aesthetically pleasing option to other larger brokerage companies.
The main objective of creating Robinhood is to make investing more straightforward and convenient by providing an online service that allows investors to invest in the stock market without the need for high transaction fees and minimum account balances. Robinhood Gold, which is Robinhood's paid account subscription, offers you unlimited access to pre-and post-market trading. Here, we will take a closer look at the 10 companies that are similar to Robinhood:
Coinbase is one of the main competitors of Dashboard and is often preferred as it allows you to monitor your assets' current prices and net value. This trading platform also keeps you well-informed on what is happening in the stock market to make the most out of each available investing opportunity. According to Guru99, signing up for a new Coinbase account automatically qualifies you for a Coinbase Visa debit card to invest in cryptocurrency anywhere.
9. Interactive Brokers
Interactive Brokers is a comprehensive trading platform that combines Robinhood's coat-saving nature and provides more research tools and functionality. This brokerage firm is known for offering some of the lowest trading fees on the stock market, where you can expect to pay $0.005 per share when trading. This is significantly lower than most other brokerage companies today.
According to cbinsights, Interactive Brokers offers an equally intuitive and excellent mobile app, which can be set to mimic the outstanding functionality of the original platform. There are also plenty of investment options that include; futures contracts, options, stocks, forex, mutual funds, and bonds. While this firm offers several platforms, its highly advanced trading platform is best suited for day or active traders who can fully utilize the wide range of research tools available.
Betterment is considered one of the best alternatives to Robinhood, which offers you a free savings and checking account, also known as a Cash account. Like Robinhood, they have no minimum account deposit and are best-known for the simplicity they offer. When you sign up for the Betterment app, you will go through a series of questions to help the firm understand your overall risk tolerance and savings goals.
E*TRADE is a stock trading app like Robinhood, that is best for active day traders, those saving for retirement, advanced traders, and derivatives traders. It is also for small investors who prefer buying only a few trades yearly. Overall, E*TRADE is the most advanced and intuitive trading platform currently available. The firm has launched mobile apps and online platforms that enable you to trade mutual funds, ETFs, stocks, and options simultaneously.
E*TRADE also has one of the best research tools that offer you the ability to do thorough investment research via an ETF screener to help meet your investment needs. You can opt to upgrade to Power E*TRADE to gain unrestricted access to more complex trading strategies and trade futures. Apart from the company's wide range of trading tools, they also have a 24/7 customer contact helpline, where you can receive answers to any investment inquiries.
Webull is a relatively newer investment best suited for new, intermediate, and experienced self-directed traders and investors. According to Well Kept Wallet, the Webull trading platform mainly focuses on the idea that innovative technology can be effectively utilized to help improve your profits in the cryptocurrency and stock market. This platform is also available as a desktop and a mobile web-based app with updated features useful for amateur and experienced traders. The more than 50 analytic tools in the Webull platform provide valuable insights and information to help increase your returns after trading.
Apart from providing technical and fundamental analysis, the Webull platform has a practice account that allows you to make trades with fake money. This brokerage firm also offers several trading courses and a demo trading account or trading simulator with accurate real-time data and enhanced charting capabilities for trade stocks. The trading courses are well designed to suit beginning investors who want to earn more about the stock market and develop an effective trading strategy. The only downside with the Webull brokerage firm is that they do not allow direct bond purchases.
5. TD Ameritrade
TD Ameritrade is considered one of the best online brokerage firms and a great alternative to Robinhood. After becoming commission-free in 2019, the firm instantly grew and began offering more investing options than Robinhood. According to Similar Web, TD Ameritrade has one of the most specific features available on both desktop and mobile. The platform features a wide array of tools that makes trading opportunities and researching stocks easier, allowing you to become a better trader. This brokerage firm can set custom alerts to help you remain updated with the current stock trends. The only downside with the TD Ameritrade platform is that sometimes the app crashes.
4. M1 Finance
M1 Finance is a free investing platform that is a crossbreed between a Robo-advisor and a traditional investment management service. However, unlike most Robo-advisors who upon taking your money automatically decides where you spend it, M1 Finance grants you total control over your cash. It allows you to choose where you would like to invest it. M1 Finance mainly encourages its clients to invest regularly and consistently, allowing for automatic contributions. This is best for day traders who can buy and sell stocks quickly. M1 Finance provides a clean and straightforward way to help you start. This is possible with no commission or fee charges and IRA options. These provide simple solutions to long-term savings.
Furthermore, by downloading the M1 Finance investment app, you will receive professional investment guidance and traditional investment services. It also provides a more straightforward way to access your money and transfer it seamlessly between your investments. According to Moneymint, when you sign up for this brokerage firm, you will be asked to complete an interview about your financial situation and long-term saving goals.
Public is an ETF and stock trading app established in 2017. This investing platform uses Apex Cleaning, which is a third party that helps manage the background administrative role of handling public user accounts. Like Robinhood, you can use the app to buy fractional shares, allowing you to follow specific companies. Moreover, Public.com makes your portfolio public to other app users. This allows you to browse other traders' portfolios and share your ideas with the community of traders.
You can also create a portfolio based on your terms by trading in fractional shares. As a result, Public makes the stock trade market more inclusive and relatable. This helps quickly build your confidence when you start investing. The main downside with Public.com is they only provide a limited number of asset types.
2. SoFi Active Investing
SoFi Active Investing is an online discount brokerage firm. Like Robinhood, SoFi boasts free stock trades and exchange-traded funds, as well as the ability to buy and sell cryptocurrencies like Ethereum, Bitcoin, and fractional shares of major companies like Netflix and Amazon. This brokerage firm allows you to begin trading with as low as $1. Then, trade ETFs and stocks with zero commission. Young traders can also benefit from its members, including free educational meetings and seminars with well-knowledgeable financial advisors. It is also one of the best alternative brokerage firms to Robinhood. This is mainly because they offer student refinancing, loans, insurance, and personal loans. Additionally, a cash management account for members with a debit card, and many more amazing offers.
Like Robinhood, Acorns is a smartphone-oriented micro-investing platform that has become increasingly popular over the past few years. This brokerage firm mainly focuses on the hands-off approach to trading. Thismeans that its members do not need to spend time researching and creating their portfolios. Acorns are best suited for persons who are looking for long-term investments; their platform is one-half investments and one-half savings accounts with a wide array of services. It is free to open your account, but you do pay a fee of $5 to invest. The main downside with the Acorns brokerage firms is that checking your account involves additional costs.
Written by Allen Lee
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