Many people are migrating from popular investment app Robinhood after the Great Meme Stock Debacle of ’21. While Robinhood is still a great option for many newbie investors, it isn’t the only one out there and you might want to jump a ship.
Heads up if you’re a current customer looking to switch: There is a $ 75 fee to transfer your account to a new broker. If you’re okay with this or want to start over with another Robinhood alternative, check out our recommendations.
What made Robinhood so great?
It is difficult – and dare we say it boring – so the average Joe starts investing. You need to learn lots of new, abstract terms, deal with confusing and clunky interfaces, and have a large amount of money to properly allocate your portfolio.
Robinhood changed all that. It makes investments accessible to just about everyone and in a neat package. It does this in many different ways, starting with the capital cost. Free trades are offered at a time when the average trading fee is $ 9. It lets you buy fractional stocks so that you don’t need hundreds of dollars to buy a single high profile stock. And it has a clear user interface and plenty of explanations so you can learn on the go.
You might worry if you are worried about losing these things. The good news is that there are plenty of Robinhood alternatives out there that offer these features and more, as long as you are willing to use the noise to figure out what you really need.
What are the best Robinhood alternatives?
Here are our top recommendations if you want to switch investment platforms:
|Robin Hood||Hide||Publicity||stock||SoFi Invest||M1 finance||Webull|
|Monthly fees?||$ 0||$ 1- $ 9||$ 0||$ 0||$ 0||$ 0||$ 0|
|Trading fees?||$ 0||$ 0||$ 0||$ 0.99 to $ 3.99 plus a 3% processing fee for debit / credit cards||$ 0 for stocks and ETFs. 1.25% for crypto trades.||$ 0||$ 0|
Stash is more geared towards newer investors looking to hold onto their investments for the long term rather than seasoned stock professionals trying to do complicated things like day-to-day trades or options contracts. It offers stocks and ETFs to invest in, but don’t expect to get wild: there are only 250 options. However, you will be provided with assistance in choosing the most suitable options for you. That is why it is better suited for people who are looking for a simple experience.
It also offers a really unique feature that we haven’t seen with other Robinhood alternatives: a debit card that actually offers shares as a reward. It’s like rewards cashback cards, but it’s a debit card, and it rewards you 0.125% – 5,000% back in stock from the big companies you buy from.
The GameStop Meme Stock Craze started on an obscure subreddit forum, but it’s not the only social media site that offers investment advice. The investing app Public invests in the … well …Publicity by providing a place where you can connect with other investors (even your friends and family) to discuss stocks together.
You can also create your portfolio directly from the app. Public lets you invest in fractions of shares in stocks and ETFs, and even offers free stocks to sign up and refer friends like Robinhood to the platform.
Fractions of stocks are all the rage right now, but Stockpile was actually one of the first investing companies to introduce this. While you can use Stockpile for most of your newbies’ investment needs, it is more likely to be marketed as a gift card service of all things.
You can buy gift cards and “gift” fractions of stocks for interesting companies like Disney – or even GameStop – and give them to friends and family. That way, it’s also a handy way to get kids interested in the stock market and investing.
SoFi Invest offers two different types of investment options: Active Investing, for people who want to do everything themselves, and Automated Investing, which acts more like a robo-advisor.
Active investing is aimed at inexperienced investors who want to play around with buying and selling a little, but are not yet big investors. For example, partial shares are only traded once a day. During this time the price can change. With Automated Investing, SoFi Invest supports you in creating and implementing an automated investment plan based on your goals.
If you’re more of a set-it-and-forget approach, consider M1 Finance. It has another well-designed app that revolves around pies: simple pie charts that show your portfolio for each account type. You can create your own pies with a custom mix of stocks and funds, or use one of M1 Finance’s preset Expert Pies, much like a robo-advisor would recommend a portfolio for you.
To invest, all you have to do is deposit money into your M1 Finance account and it will automatically be split among the investments in your pie. It will also rebalance your portfolio for you, leaving essentially no work other than adding money and updating your pie if necessary. As such, it’s not a great choice for active day traders, but it’s a perfect choice for buy-and-hold investors.
If, as an active investor, you’ve already taken the first steps and don’t need that much manual labor, Webull is likely one of the next Robinhood alternatives. It has everything you’d expect from Robinhood, including advanced margin trading and options. It also offers extended trading hours, making it perfect for day (or night) traders.
The only drawbacks are that the margins are a bit more expensive (3.99% – 6.99% versus 2.50%) and no fractions are offered. It also offers fewer opportunities to learn the ropes, so you either already know them or need to look for other sources of learning.
The investing world is your oyster
If you’re like a lot of people, chances are you could get into the robinhood frenzy without actually doing a full scan of the types of brokers for different investment styles. The reality is there are many types of brokers beyond what we’ve shown you here as the best Robinhood alternative.
But you asked yourself – a Robinhood style broker is what you are Really need? Make sure that you do your research to understand all types of online brokers so that you can ensure that you sign up for the solution that best suits your needs.