Robinhood is a cryptocurrency brokerage and trading app that has been in the news for its free stock trading. But, there are many other options available to investors who want to trade cryptocurrencies without paying fees.
The robinhood alternatives for non u.s. citizens are 12 options that are available to people who are not in the United States.
When it initially launched in 2013, Robinhood caused quite a stir in the brokerage business. Robinhood swept Wall Street by making all stock and ETF transactions commission-free and creating a tech-savvy platform that appealed to younger investors.
However, by 2021, a slew of rival online brokerages have begun to give Robinhood a run for its money. There are hundreds of different trading platforms to select from, so the odds are good that you’ll find a fantastic Robinhood alternative.
Don’t worry if you’re having trouble deciding which online brokerage is ideal for your investment requirements; we’re here to assist.
We’ll introduce you to 12 of the finest Robinhood alternatives in this post. We’ll go through the benefits and drawbacks of each brokerage, as well as how they compare to Robinhood, so you can become a better informed investor.
Alternatives to Robinhood in 2021
Are you unsure whether Robinhood is the appropriate brokerage for you to use to help you invest your money? Before you create your next Robinhood account, here are some of the finest options to consider:
TradeStation is an online brokerage that prioritizes you, the trader, in everything that they do. TradeStation, like Robinhood, provides commission-free stock and ETF trading, as well as $0 transactions on options for good measure.
While TradeStation’s pricing structure may be a little perplexing at first, their comprehensive trading platform has a lot to offer. All account users get access to a number of the company’s sophisticated charting and analysis tools, as well as some excellent market research.
Plus, when it comes to the kinds of financial products you may trade on TradeStation, it blows Robinhood out of the water. You may trade stocks, ETFs, options, futures, futures options, bonds, and restricted mutual funds with the business. You may also purchase, sell, and withdraw cryptocurrency, which for some investors is a significant benefit over Robinhood. To discover more, read our complete TradeStation review.
Firstrade is a good Robinhood alternative for investors looking for a cheap brokerage. It was one of the first trading platforms to go completely online. Firstrade is one of the only platforms that has reduced costs on almost all investment classes, offering commission-free trading on stocks, ETFs, options, and even mutual funds.
Firstrade, like Robinhood, has no minimum balance requirement for opening an account, making it a good choice for first-time investors. Traders from roughly 60 different countries may open accounts with Firstrade, which is ideal if you’re a non-US person seeking to trade in US markets.
Additionally, the firm provides both taxable brokerage and tax-advantaged retirement accounts, making it an excellent option for clients with a variety of financial objectives. To discover more, read our complete Firstrade review.
SoFi Invest is a company that invests in small businesses.
SoFi Invest is a user-friendly brokerage for both active and passive investors. It is a complete online financial institution that provides everything from investing to banking solutions.
SoFi, a cheap brokerage aimed at tech-savvy traders, provides commission-free stock, ETF, and cryptocurrency trading in both taxable and tax-advantaged accounts. SoFi Invest, like Robinhood, allows you to purchase fractional shares, which is extremely helpful if you want to access high-priced stocks.
But it’s SoFi Invest’s automatic investing function that sets it different from Robinhood. SoFi’s robo-advisor service, which automatically rebalances and is fee-free for accounts with balances under $10,000, is available to passive investors. To discover more, read our entire SoFi Invest review.
Webull is a popular Robinhood alternative for anybody seeking for a low-cost brokerage with excellent access to real-time market data. It is designed to appeal to both novice and seasoned investors. They also provide extended-hours trading, similar to Robinhood.
Weibull, unlike Robinhood, enables investors to establish a taxable brokerage account or a number of individual retirement accounts. Webull, like Robinhood, allows you to buy and sell stocks, ETFs, and limited options without paying a charge.
Webull differs from Robinhood in terms of its trading platforms, in addition to the fact that the business has extended its bitcoin capabilities. Webull’s stock screeners, virtual trading pool, and overall user-friendly interface are superior to what Robinhood presently has to offer for active investors. To learn more, read our complete Webull review or compare Webull to Robinhood in our Webull vs. Robinhood comparison.
TD Ameritrade is a brokerage firm based in New York City.
TD Ameritrade, one of the world’s biggest brokerages (particularly after its merger with Charles Schwab), is a full-service investing platform offering something for everyone. TD Ameritrade allows you to establish a normal brokerage account or a variety of retirement accounts, depending on your investment objectives.
TD Ameritrade, like Robinhood, does not charge commissions on stock and ETF transactions, but there is a contract fee on options trades. TD Ameritrade, on the other hand, allows you to purchase a variety of mutual funds, bonds, CDs, futures, and other securities, which is useful if you want a well-diversified portfolio.
TD Ameritrade’s award-winning trading systems and market research tools are another area where it outperforms Robinhood. The business offers four distinct platforms, including its highly configurable thinkorswim interface, which is favored by experienced traders. To understand more, read our whole TD Ameritrade review.
Public.com is a commission-free brokerage for no-frills investors. It is a simple and easy-to-use platform that leverages the power of social networking. Public.com is a website that allows anybody to trade stocks and ETFs for free. It was created with the goal of making the stock market more accessible to everyone.
Surprisingly, the brokerage avoids paying for order flow (PFOF) methods, which has been a source of contention for Robinhood in the past. Instead, if you’d want to thank your Public.com broker for making your transaction, you may tip them.
Like Robinhood, your account choices with Public.com are restricted (taxable accounts only), but you do have access to fractional share trading. Public.com also offers a huge social media community where you can talk about your investment ideas with other like-minded people. To discover more, read our entire Public.com review.
E*TRADE may be the answer if you enjoy Robinhood’s commission-free trading but want a more sophisticated trading platform.
E*TRADE presently offers no commissions on stocks, ETFs, and options, as well as fair commissions on mutual funds, futures, FX, and bonds. So, if you want to have access to a variety of various investing instruments, they’re fantastic.
E*TRADE also enables you to establish a variety of account types, many of which may take use of the company’s robo-advice capabilities. Oh, and you can trade on the company’s web and desktop platforms, both of which have advanced analytical capabilities that Robinhood’s platforms lack. To discover more, read our whole E*TRADE review.
Ally Invest is a company that invests in companies.
Ally Invest is a popular Robinhood alternative for both passive and active traders. It’s your one-stop shop for self-directed and automated trading. Ally Invest is part of the Ally Financial Group, which is one of the most popular online banks in the United States.
Their investing platform offers both self-directed taxable and tax-advantaged accounts, as well as a variety of robo-advice options. Ally Invest is a cheap brokerage that does not charge commissions on stocks, options, or ETFs, although there are costs for mutual fund investments.
Ally Invest, on the other hand, has a wider range of investment options than Robinhood, including FX, futures, and bonds. Plus, if you believe a managed portfolio is a better fit for you, Ally is one of the most cost-effective choices available. This is due to the fact that there are no administration fees and just a $100 minimum balance requirement. To discover more, read our entire Ally Invest review.
M1 Finance is a company that specializes in financial services
M1 Finance, a hybrid robo-advisor and brokerage service, provides all clients with complete money management and investing choices.
M1 Finance, like Robinhood, specializes on commission-free trades and fractional shares trading in stocks and ETFs. Depending on your objectives, M1 Finance allows you to establish a taxable brokerage account or a tax-advantaged retirement or trust account.
M1 Finance’s automatic investing system, which uses their “pies” method to distribute deposits to stocks and ETFs of your choice, is one of the most distinctive features of the company. M1 Finance also gives investors access to a checking and lending account, enabling them to handle all of their money in one location. To understand more, read our complete M1 Finance review, as well as our M1 Finance vs. Robinhood comparison.
Fidelity Investments is one of the most well-known and well-respected online brokerage firms. Individual and joint brokerage accounts, corporate accounts, individual retirement accounts, and 529s are all available via the firm.
While Fidelity does not provide crypto trading like Robinhood, it does enable you to invest in a variety of assets like stocks, ETFs, options, bonds, CDs, and mutual funds. One of the company’s greatest benefits over Robinhood for those looking to diversify their portfolio is its selection of no-minimum-investment, fee-free mutual funds.
Furthermore, Fidelity’s desktop software has powerful financial research features that you won’t find with Robinhood. Alternatively, if you want a more hands-off approach to investing, Fidelity offers a wide range of managed portfolio choices. To discover more, read our entire Fidelity review.
Interactive Brokers is a brokerage firm that specializes in trading
Interactive Brokers should be at the top of your Robinhood alternatives list for foreign investors or anybody who wants access to global markets.
Interactive Brokers is a good option for experienced traders since it provides various price options, one of which includes commission-free (or extremely low cost) equities transactions. With the business, you may trade options, bonds, and futures in more than 20 currencies on more than 125 foreign marketplaces.
Interactive Brokers is ideal for experienced traders with large account balances since its platforms and services are a little more complicated than Robinhood’s. Interactive Brokers is worth considering if Robinhood’s limited analytical tools and investing offerings are holding you back. To discover more, read our complete Interactive Brokers review.
Stash is a subscription-based platform for novice traders who seek a long-term investing instrument with minimal minimum deposits. Stash does not provide free accounts, however its monthly subscriptions range from $1 to $9.
Stock and ETF transactions are free with Stash, and you may invest in fractional shares. Stash, on the other hand, provides more extensive savings options than Robinhood. This includes their Stock-Back rewards debit card (which may be used with their integrated checking account) and their extensive instructional materials.
If that wasn’t enough, Stash also gives you the option of selecting from a variety of account types depending on your membership plan. Individual brokerage accounts, conventional and Roth IRAs, and custodial accounts are all available via Stash+, which are not available through Robinhood. To understand more, read our entire Stash review.
Why You Might Not Be a Good Fit for Robinhood
Whether you’re reading this, you’re undoubtedly wondering if Robinhood is the perfect platform for you to invest your money.
While there are many advantages to investing via the site (there’s a reason it has more than 10 million members), there are also a number of reasons why it isn’t appropriate for all investors.
Here are a few reasons why choosing one of our Robinhood alternatives may be a wise decision:
There are no retirement accounts.
First and foremost, know this before investing with Robinhood: As of 2021, Robinhood does not provide retirement accounts. This implies they don’t provide Roth or conventional IRAs, SEP IRAs, 401(k)s, or any other kind of retirement account.
Instead, a Robinhood customer can only open one kind of account: a normal individual brokerage account (joint accounts aren’t available, either).
While brokerage accounts are great for those who want to create wealth or invest for a short-term objective, they aren’t the best option when it comes to taxes. This is because in a normal brokerage account, all realized dividends and capital gains are taxed. Earnings in retirement funds, on the other hand, are either tax-free or tax-deferred.
If you’re seeking to grow your retirement savings, one of our Robinhood alternatives, such as E*TRADE or Fidelity, may be a better fit.
Crypto Features are Limited
After dipping its toes into the crypto realm in 2018, Robinhood was one of the first big online brokerages to provide cryptocurrency trading capabilities to its customers.
It’s still a popular location to trade crypto these days, since the platform’s partner Robinhood Crypto enables you to buy and sell currencies like Bitcoin, Litecoin, and Ethereum. Robinhood’s existing crypto features, on the other hand, are beginning to fall behind the competition.
One of the main drawbacks of Robinhood Crypto is that you can’t move your cryptocurrency into or out of your account. That implies you can’t take your coins and store them in a separate wallet.
What is the significance of this?
Because the FDIC and SIPC do not cover cryptocurrencies, your cryptocurrency assets aren’t as well protected as your normal cash and securities.
As a result, many cryptocurrency investors choose to withdraw their funds from online wallets and store them in physical wallets for safety. That isn’t an option with Robinhood, however.
If you want to trade cryptocurrency, a platform like TradeStation, which allows withdrawals, may be a better option.
Trading Assets Can Be Blocked Due to Extreme Market Volatility
If you were paying attention to the news in early 2021, you were undoubtedly aware of the controversy surrounding Robinhood and “meme” stocks like Gamestop (GME) and AMC Entertainment (AMC) (AMC).
Of course, Robinhood wasn’t the only brokerage engaged in this scandal. However, they were one of the few firms that forbade its traders from purchasing Gamestop and other stocks for an extended length of time. As a consequence, when it comes to customer trust in Robinhood’s ability to execute transactions correctly, it has lost some reputation among traders.
Furthermore, this isn’t the first time Robinhood has fallen short of expectations. Over the years, the platform has had a number of technical issues, the most recent of which occurred in 2020 and 2019.
One of the most concerning events occurred in early March 2020, when the stock market saw a significant increase in trade activity. Due to some significant technical difficulties, Robinhood investors were unable to trade for about 17 hours.
Needless to say, this is not a good approach to gain investor trust.
PFOF (Payment for Order Flow) Practices Are Controversial
When Robinhood initially launched, it promised investors something previously unheard of: commission-free stock and ETF transactions.
While commission-free trading is rapidly becoming the standard on Wall Street, you may be wondering, “How can brokerages earn money if they don’t charge a commission?”
What is the solution? In the case of Robinhood, it’s mostly due to their payment for order flow (PFOF) policies.
During the second quarter of 2020, Robinhood made $180 million from transactions. They earned all of this money by using PFOF, a controversial technique that is gaining in popularity in the online brokerage industry.
PFOF operates by enabling brokerages to sell the rights to transactions that have been completed on their platform. In the case of Robinhood, they may work with market-makers like Citadel Securities. Instead of placing their transactions on the open market, Robinhood offers to route them to Citadel for execution in exchange for a modest charge (about $0.11 to $0.17 per 100 shares).
Market-makers and Robinhood may have certain conflicts of interest as a result of PFOF. This is especially true for millennial-focused platforms like Robinhood, where firms like Citadel can profit off the fact that many of the site’s retail clients are inexperienced to trading.
Is this PFOF practice having a direct impact on you as a retail investor? Probably not in a concrete manner, but it’s possible.
This is especially true when it comes to the bid-ask spread, which may increase as a consequence of PFOF. While the technical details of how it all works may be complex, the lesson of the tale is that PFOF can result in higher expenses for individual investors indirectly.
PFOF, on the other hand, will have little effect on the results of many individual traders. However, it’s a potentially dubious practice that you should be aware of before signing up for a Robinhood account. Public.com is an excellent Robinhood alternative if you wish to avoid brokers that utilize PFOF as an income source.
Active Traders Have Limited Analysis Tools
Robinhood’s analytical capabilities are very restricted for those who take an active approach to their investments, it’s worth noting.
Because Robinhood’s platform was created with novice investors in mind, the app and interface were intended to be as easy as possible. For those who don’t have a lot of time to study the ins and outs of the market, this simple method is ideal.
Robinhood, on the other hand, falls short of expectations for those who want to get down to the nitty-gritty of prospective investments. Stock screeners, heatmaps (like on TD Ameritrade’s thinkorswim platform), and comprehensive instructional features are not available on Robinhood.
Furthermore, the company’s candlestick charts are unsatisfactory. To be sure, Robinhood has candlestick charts, but they’re tough to read and don’t have nearly as many useful indications as platforms like Webull.
As a result, active investors may wish to seek elsewhere.
There are no mutual funds available.
Finally, it’s important to note that Robinhood does not provide mutual fund investment. This may not be a huge problem for those wanting to get their feet wet by trading stocks and ETFs, but it may be a pain for others who prefer a hands-off approach to investing.
Mutual funds are often regarded as a good investing tool for both novice and seasoned investors since they allow you to diversify your portfolio without having to buy hundreds of companies.
There are certain drawbacks to mutual fund investment, such as hefty fees. However, it’s great to have the option of investing in them if you so want. Mutual funds, on the other hand, are not presently available via Robinhood.
When it comes to online brokerages, there are a plethora of choices to choose. Of course, for new and tech-savvy investors, Robinhood has long been a popular trading tool. If you’re searching for a more comprehensive brokerage, there are lots of excellent Robinhood options available.
Finally, the goal is to select a brokerage that has the features and tools you need to make smart financial decisions, and we hope this article has assisted you in making that decision.
The robinhood for non u.s. citizens is a website that allows users to trade stocks without paying any fees. It also offers free stock trading tools and portfolio management services.
Frequently Asked Questions
What should I switch to from Robinhood?
We recommend you try out Robinhood Gold. This is a premium service that offers more features than the free version of Robinhood, such as faster trading and access to advanced order types like stop-loss orders.
Is my money safe in Robinhood 2021?
Yes, your money is safe in Robinhood 2021.
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