Robinhood vs. 4 Alternatives
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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 is standard, not special.
And while Robinhood remains the face of the individual investor movement — and it continues to score well on user experience and low costs in our analysis of online brokerages — other brokers and investment apps like Robinhood surpass the first-mover in other areas, and may fit as an alternative or supplemental investment account.
» Open a second brokerage account? Learn when it makes sense and how to do it
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.
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% match on contributions.
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.
Robinhood is best for:
Mobile users.
Individual taxable accounts and IRAs.
Margin accounts.
Robinhood at a glance
Account minimum | $0 for brokerage accounts, Robinhood Gold accounts and IRAs. |
Stock trading costs | $0. |
Options trades | $0. |
Account fees (annual, transfer, closing, inactivity) | No annual, inactivity or ACH transfer fees. $100 ACAT outgoing transfer fee. (Robinhood Gold costs $5 a month.). Matching funds in IRAs may be taken back if money is withdrawn after less than five years. |
Interest rate on uninvested cash | 1.5% for free accounts, 5% for Gold accounts. |
Tradable securities | • Stocks. • ETFs. • Options. • Cryptocurrency. • American Depositary Receipts for over 650 global companies. • Fractional shares. • Bonds only available in the form of bond ETFs. |
Number of no-transaction-fee mutual funds | Not rated. |
Trading platform | Robinhood's mobile and web platforms are known for their smooth sign-up, funding and trading processes. However, the constant pop-up notifications can be exhausting. |
Mobile app | Mobile trading platform includes customizable alerts, news feed, advanced charting and ability to listen live to earnings calls for some companies. |
Research and data | Access to professional research from Morningstar and Level II market data from the Nasdaq Stock Exchange (with Gold subscription). |
Customer support options (includes how easy it is to find key details on the website) | 24/7 chat support. Phone support available from 7:00 a.m. ET to 9:00 p.m. ET. |
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 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.
However, you won’t find cryptocurrencies at Fidelity, nor the trimmed-down, sleek user experience Robinhood users have come to love.
» Explore your options: See the best brokerages for beginners
Fidelity is best for:
Frequent traders.
Beginner investors.
Research and data.
Retirement planning assistance.
Fidelity at a glance
Account minimum | $0. |
Stock trading costs | $0. |
Options trades | $0.65 per contract. |
Account fees (annual, transfer, closing, inactivity) | None. |
Interest rate on uninvested cash | 4.97%. |
Number of no-transaction-fee mutual funds | More than 3,300 no-transaction-fee mutual funds. |
Tradable securities | • Stocks. • Corporate, municipal and government bonds. • Mutual funds. • ETFs. • Fractional shares. • Options. • FOREX. • Precious metals. • Bitcoin and Ethereum. |
Trading platform | Fidelity.com and Active Trader Pro. Both free for all customers. |
Mobile app | Available for iOS and Android; advanced features. |
Research and data | Free and extensive. |
Customer support options (includes how easy it is to find key details on the website) | Phone, email and live chat 24/7; more than 200 local branches. |
» Curious about other choices? View the best stock apps
Among investment apps: Acorns
If you’re committed to using a mobile-first investment app like Robinhood but are wondering what else is out there, Acorns also ranks on our list of the best investment apps. However, 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, and offers three tiers of service for three different flat monthly fees.
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, your only option is to invest 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 fore the best investment apps
Acorns is best for:
Hands-off investors.
People who struggle to save.
Earning cash-back rewards.
Acorns at a glance
Reviewed: Oct. 2023
Period considered: Aug. - Oct. 2023
Account minimum | $0 to open account; $5 required to start investing. |
Account management fee | $3, $5 or $9 per month. |
Investment expense ratios | 0.05% to 0.18%. |
Account fees (annual, transfer, closing) | $35 per ETF to have them transferred to another broker when you close your taxable Acorns account; no charge to sell your investments and have the resulting cash transferred. |
Portfolio mix | Well-diversified portfolio with exposure to domestic and international stocks, bonds, REITs and a Bitcoin-linked ETF. |
Socially responsible portfolio options | Sustainable portfolio built with ESG ETFs available for no extra cost. |
Accounts supported | Individual non-retirement accounts. Roth, traditional and SEP IRAs. UTMA/UGMA accounts available at the $9-per-month tier. |
Tax strategy | Not available. |
Automatic rebalancing | Free on all accounts. |
Human advisor option | Not available. |
Bank account/cash management account | Acorns offers impressive high-yield checking and savings accounts. The checking account earns 3% APY and the savings account earns 5% APY, with no minimum balance to receive the interest rate. The checking account has no overdraft fees and access to 55,000+ fee-free ATMs. |
Customer support options (includes how easy it is to find key details on the website) | Customer support is available 7 days/week from 5:00 a.m. to 7:00 p.m. PT via live chat, phone and email. |
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. To get some of the functionality offered by pure-play crypto platforms, you'll need to use the separate Robinhood Wallet. Cryptocurrency trading on Robinhood is not available in IRAs, and even in taxable accounts it still feels like an afterthought. 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, more or less continuing its service unchanged even as the crypto world started to implode in late 2022. In fact, crypto.com was the only crypto platform to receive 5 stars on our roundup of the best crypto platforms and exchanges. 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.
Crypto.com is best for:
Mobile-first users.
Transactions with fiat, or traditional, currency.
DeFi, or decentralized finance, tokens.
Crypto.com at a glance
Minimum trade | $1 or less for Bitcoin; other cryptocurrencies vary. |
Trading and transaction fees | No trading fee, but transactions using credit/debit cards cost up to 2.99%. |
Number of cryptocurrencies | More than 250. |
Crypto-to-crypto trading pairs | Crypto.com doesn't offer an official list, but Bitcoin and other major assets have dozens. |
Website transparency | Crypto.com's website is helpful, but sometimes fails to distinguish effectively between services offered by its U.S. and overseas services. |
Storage and security | Crypto.com has a handful of features such as insurance for assets. It did suffer a breach in 2022. |
Staking and rewards | Rewards can range up to 12.5% for high rollers, but earnings don't compound. |
Mobile app | Crypto.com's main app is available on iOS and Android, with a high average rating. |
Customer service | Crypto.com offers only chat-based help for most issues. |
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.
That said, Robinhood’s simplicity is a large part of its appeal. If you’re considering using Webull as an alternative, you may have a bit of a learning curve as you make your way around the new tools, charts and overall experience.
And, as of 2023, if you're looking to trade crypto on Webull, you'll have to download a separate app called Webull Pay. While you'll also need to download Robinhood Wallet for more advanced crypto functionality via Robinhood, you can at least still perform basic buy and sell functions within the main Robinhood app, which you can't do on Webull anymore.
What’s more, Robinhood gains an edge over Webull when it comes to IPOs. With its new IPO Access feature, retail investors have the chance to buy into IPOs before they start trading on the market.
Webull is best for
Intermediate investors.
Active traders.
Options traders.
Cryptocurrency traders.
Webull at a glance
Account minimum | $0. |
Stock trading costs | $0. |
Options trades | $0 per trade and $0 per contract on equity options. $0.55 per contract on non-equity options such as index options. |
Account fees (annual, transfer, closing, inactivity) | None. |
Interest rate on uninvested cash | 5%. |
Tradable securities |
|
Number of no-transaction-fee mutual funds | Not rated. |
Trading platform | Mobile, browser-based and downloadable desktop platforms available with advanced charts, indicators, screeners and customization. Not the most intuitive buy/sell interface, but it's usable. |
Mobile app | Mobile app offers advanced features including charts and indicators, paper trading, price alerts and voice command. |
Research and data | A handful of data providers including Bloomberg and Refinitiv. |
Customer support options (includes how easy it is to find key details on the website) | Customer support available by phone from 9:00 a.m. Eastern time to 4:15 p.m. Email and in-app help center available 24/7. |
NerdWallet rating 4.9 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 4.1 /5 |
Fees $0 per online equity trade | Fees $0 per trade | Fees $0 per trade |
Account minimum $0 | Account minimum $0 | Account minimum $0 |
Promotion None no promotion available at this time | Promotion None no promotion available at this time | Promotion Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money. |
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