Robinhood vs. 4 Alternatives

For some, Robinhood is synonymous with “investment app.” When the company started offering free trades in 2015, it had an enormous advantage over most major brokerages that were charging customers for every trade. However, Robinhood’s competitors quickly followed suit, and today commission-free trading of stocks and ETFs is standard, not special.

» Curious about other choices? View the best stock apps

When it comes to finding a broker that’s right for you, the key is identifying what your investment goals are and finding a broker that will help you meet them.

• Overview of Robinhood

• Alternative for beginners: Fidelity

• Alternative investment app: Acorns

• Alternative for cryptocurrencies: Crypto.com

• Alternative that's similar overall: Webull

Robinhood overview

Robinhood has been credited for bringing about an enormous change in the brokerage industry: doing away with trade commissions. The app offers a sleek, easy way to trade stocks, options, exchange-traded funds (ETFs) and cryptocurrency, and has been regularly unveiling new products. Most recently, Robinhood added IRAs with a 1% to 3% match on contributions, launched a new trading platform geared toward active traders and introduced futures.

However, Robinhood has also been the focus of complaints from the Securities and Exchange Commission, lawsuits and public outrage over some of its practices. In June 2021, the company paid nearly $70 million in fines and restitution — the largest financial penalty ever levied by the Financial Industry Regulatory Authority.

Below are five comparisons discussing how Robinhood’s competitors stack up in various categories.

Alternatives to Robinhood

For beginners: Fidelity

Fidelity may be one of the largest brokerages in the country — it manages trillions of dollars in assets — but that doesn't mean it’s too big for beginner investors. The brokerage regularly tops our list of the best brokerages for beginners because it offers a comprehensive brokerage service that grows with you as your investment needs evolve. Like Robinhood, Fidelity offers a small selection of cryptocurrencies.

» Explore your options: See the best brokerages for beginners

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Among investment apps: Acorns

If you want a sleek platform but don't want to manage your investments yourself, you may want to consider a robo-advisor like Acorns. Acorns is a very different product from Robinhood; it’s mostly geared toward long-term savers. It’s part robo-advisor, part savings account, part full-service brokerage.

One of its signature offerings is its round ups: Use an Acorns debit card (or another linked card) for everyday purchases, and Acorns will “round up” the change and automatically invest it for you.

If you’re looking to invest in individual stocks, though, Robinhood may be the better choice. With Acorns, you can customize your portfolio with some individual stocks, but you'll mostly be invested in preset portfolios, which the app will help you choose based on your risk tolerance. To be sure, these diversified portfolios are a responsible way to invest long-term, but you won’t have the same investing experience and freedom as you have with Robinhood.

» See the list: Review our picks for the best investment apps

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For crypto: Crypto.com

If you’re using Robinhood to trade cryptocurrencies, it’s important to understand that at this time, the app has very limited functionality and supports a limited number of coins. The app’s primary focus is still easy, free stock trading, not cryptocurrencies.

Crypto.com, on the other hand, has so far proven itself in a difficult environment. The platform offers a huge selection of crypto assets, staking functionality, DeFi web browsing, a discount-enabling stablecoin and low fees.

However, if it’s only price appreciation you’re looking for in crypto — and you’re OK choosing from a limited selection — Robinhood still may be the better choice, given how simple its interface is and that crypto trading is completely free. You'll just miss out on some of the more advanced featured crypto.com offers.

» Ready to get started? See our picks for best crypto platforms and exchanges.

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For overall similarity: Webull

Webull is a relative newcomer, but has quickly earned a spot as an alternative to Robinhood because of how similar the two are. Webull is easy to use, sleek on mobile and offers free trades on stocks, options, ETFs and cryptocurrency, much like Robinhood. In fact, it’s hard to find a brokerage that beats either Robinhood or Webull on cost. However, Webull offers tools intermediate and advanced traders may appreciate, but won’t find on Robinhood.