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 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.

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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: Gemini

• 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% 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.

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.

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» Curious about other options? 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.

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For crypto: Gemini

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. 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.

Gemini, on the other hand, is all about cryptocurrencies, and you’ll find you have much more control over the coins you buy. For example, you can send and receive coins directly from your Gemini wallet, join liquidity pools that offer a fixed interest rate and explore other decentralized finance applications.

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. Crypto trading through Robinhood is completely free, whereas Gemini’s fees are relatively high.

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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.

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. 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.