Robinhood Competitors

  • May 29, 2020

Since its inception in 2013, this Silicon Valley startup has been one of the most disruptive forces in online stock trading. At $0 commissions, this low-cost brokerage firm makes investments not only affordable but accessible. But who are the Robinhood competitors? 

However, this price doesn’t come without sacrifices in other areas. Before you sign up and get that free stock, here are some of the Robinhood competitors you might want to keep an eye on. 

Top Robinhood Competitors

  • I might be going out on a limb here, but in my personal opinion, Robinhood competitors include Firstrade, M1 Finance, WeBull, AllyInvest, and TD Ameritrade. All of these brokerage companies provide low-cost trading plus a host of benefits that Robinhood doesn't offer. Indirectly, Robinhood is competing with Robo-advisors like Betterment and Wealthfront. 
Robinhood Competitors

1. Firstrade 

As Robinhood competitors go, the biggest is Firstrade; without a doubt. Firstrade has the lowest commissions on all investment products in the industry. 

And unlike Robinhood, Firstrade offers mutual funds. With a pricing of $0 for stocks, ETFs and mutual funds and no account maintenance or inactivity fees, they are one of the best free brokerage firms. 

2. M1 Finance

If you’re looking for a unique way to invest in stocks and ETF’s look no further. M1 Finance is a new hybrid Robo/self-directed brokerage that is shaking up the investing world.

Customers can create “pies” or baskets of stock and ETF’s to trade as one unit. What’s more, there are no account maintenance or inactivity fees, and you can open an account with $0 down.

$0 down is a huge draw for Robinhood competitors. Therefore, make sure to check out our trading service so you can grow that $0.  

3. Webull

Robinhood competitors like WeBull is perhaps the least known. Webull clients get to trade equities and exchange-traded funds.  

Only penny stocks priced above $1 and trading on major exchanges are available; that's it—at least for now. For those wanting to trade options or mutual funds, you're out of luck.

Similar to Robinhood, you pay no commission on U.S. stocks, options and ETF's and there are no account fees or fees to open an account. Check out our Webull review.

4. Ally Invest 

Zero dollar commissions. That's right – with Ally Invest Self-Directed Trading, you can trade commission-free. What's more, there is no account minimum to get started.

Better yet, as of writing this, you can earn up to $3,500 in bonus cash when you open an Ally Invest Self-Directed account.

And if you're worried about account transfer fees - some brokerages charge up to $150, Ally Invest has you covered. When you move your account over, they'll credit you up to $150.

5. TD Ameritrade 

Like Robinhood, TD Ameritrade offers free stock and ETF trades and access to a large selection of mutual funds. Over 4,200 of them carry no transaction fees - they are commission-free.

What sets TD Ameritrade apart is that they offer a broad range of financial services that Robinhood doesn't. What’s more, you also have access to their free trading software, ThinkorSwim

Without a doubt, ThinkorSwim is one of our favorite platforms for charting. TD Ameritrade’s mobile platform far exceeds Robinhood’s simple app, which offers almost nothing except trading. We make our penny stocks list on ThinkorSwim as well. 

What Other Apps Are Like Robinhood?

  1. Ally
  2. Webull
  3. TD Ameritrade
  4. Charles Schwab 
  5. Firstrade
  6. M1 Finance

1. Pros of Robinhood

Compared to other top Robinhood competitors, like Ally Invest, Firstrade, and TD Ameritrade, Robinhood's most significant advantage is their lack of transaction fees.

The ability to make trades without losing profit to commissions makes Robinhood ideal for someone new to investing.

For seasoned traders, I'm sure you remember the first chart and software program you opened.

I know for me, my head was spinning faster than the final spin cycle of my washing machine. You can take a deep sigh of relief with Robinhood as their design is minimalist, modern, slick, and easy to navigate. 

Make sure to check out our live trading room where we teach you how to trade with many different brokers and strategies first hand.

Robinhood Review

2. Cons of Robinhood

If you are trading on a scale where transaction fees don't matter, Robinhood doesn't have much to offer you. To be honest, it lacks many features that would be considered industry-standard for any mainstream securities trading platform.

For the advanced trader crowd, the biggest turn-off will be that Robinhood has no advanced trading platform or tools.

Likewise, any trading strategy more complicated than buy low, sell high will simply not work on Robinhood. Serious traders who need more tools to make investing worth their time should take a look at TD Ameritrade.

Another big downside to consider is that you can only trade stocks, ETFs, and options. If you want to trade bonds, mutual funds, futures or securities registered on foreign markets, you will be disappointed.

For more serious traders looking to build their portfolios on their own, this can be a significant limitation. However, as a beginner investor, I wouldn't be too concerned because you will probably want to stick to the basics. Keep it simple right? 

If you're going to use Robinhood or one the Robinhood competitors, make sure to take our free online trading courses.

Robin Hood Competitors Summary

Robinhood has the advantage of always providing zero commissions on stock and ETF trades. So if limiting costs is your number one concern, Robinhood is a great way to get your feet wet. 

Cost aside, it’s essential to realize that plenty of online brokers have joined Robinhood in offering commission-free trades.

You can now afford to shop around for the broker that suits you best. Let's us help you, see our Bullish Bears blog for detailed broker reviews. And if opening a brokerage account is making your head spin, check out our post on the process of opening a brokerage account.

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