Robinhood Alternatives: Should You Quit Robinhood?

Daniel Penzing
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Robinhood was launched over 5 years ago and was one of the 1st free stock trading apps to enter the market. It also revolutionized the stock trading industry by being the 1st company to offer zero-commission trading and a user-friendly interface that was free to use.

Years have passed and although many are satisfied with the service, some would like something new. In this post, we’ll look at a few of the main reasons why some believe Robinhood should be discontinued as well as some alternatives that will help you find a suitable replacement.

Robinhood has been called a revolutionary trading platform and it is something that has been growing increasingly popular with investors in the United States in the last several years, especially amidst the rise of online trading.

So, to many investors, the decision to move away from their Robinhood platform is a big one.

For starters, it is important to point out that Robinhood is an app that works on most mobile devices, too.

Naturally, you do not need a specific mobile device to use Robinhood, but it is important to note that Robinhood does have access to hundreds of financial products, providing you with a fairly large variety of choices for stocks, bonds, options, and more.

So, you can see why it would be difficult to move away from a trading platform like this, but if you are having issues, it is best to know what you can do to solve them.

What's Wrong With Robinhood?

Angry Investors Abound

Robinhood Alternatives to Consider

I’m a Robinhood user for quite a while now, and I must say that it’s been a pretty good experience. They’ve simplified the process of buying and selling stocks significantly, and it’s been working great for me. However, I know that most of you are going to ask the same question: What are Robinhood Alternatives? Are you going to get give up Robinhood and drive yourself to a different platform?

E*TRADE

If you want a Robinhood alternative with low or no-minimum account opening, E-Trade Mobile is definitely worth checking out.

The E-Trade app is user-friendly and utilizes smart screen technology. The app also works with Google Assistant for voice-activated access to your accounts as well as the ability to make purchases via voice commands. If you use E*TRADE on your iPhone, you can even have information read from the app, which can be a huge help to the visually impaired.

One of the biggest reasons for leaving Robinhood was that there were no commission-free ETFs beyond those offered by Robinhood.

That might have been true a couple of years ago but not anymore.

Although ETFs will remain a part of the E-Trade app going forward, there are now more commission-free ETFs available on E-Trade than on Robinhood.

However, if you’re interested in stocks, you’ll find that E-Trade has a smaller selection of commission-free stocks than Robinhood does.

But if ETFs are your thing, E-Trade has a better selection of them than Robinhood.

Ally Invest

Vs. TD Ameritrade

If you’re looking for a Robinhood alternative, there’s a good chance you’ve turned your attention to another free trading app, one with no setup fee and no maintenance fee … no account minimums.

That’s why we’re here to explain why Robinhood is well worth the few bucks a month. Robinhood does have fees, but they’re more reasonable than most players its size. In this article, we’ll compare fees across some of the biggest brokerages and explain why Robinhood is still the better choice, fee and all.

While they are basically 100% free broker, Robinhood and TD Ameritrade both offer commission-free options for buying and selling the 10 most popular ETFs on the market, but their benefits don’t stop there.

Here’s the rundown of what each brokerage offers their customers and why Robinhood’s commission-free deal is better than what’s offered by TD Ameritrade.

Robinhood vs. TD Ameritrade Commission-Free ETFs

Robinhood offers all 10 of the ETFs listed on the S&P 500 index for commission-free buying and selling.

WeBull

Review:

WeBull is a new app that will allow you to save on apps (no pun intended). They will be giving you cash back depending on the app you buy.

  • Why use WeBull?
  • Get free money with every purchase you make
  • Apple and Google products all on one mobile app
  • Whole app is FREE to install
  • No Gimmicks
  • Real cash back, on the spot.

Public

Financial markets are on a roller-coaster ride day by day. This is normal. One CEO stock can singlehandedly shift this market and this, too, is normal. So, when the stock market is doing its multidimensional roller-coaster ride, don’t be surprised when there are constant ups and downs.

Don’t be surprised when you login to your trading account and see nothing but red (or black) all-over your screen. Don’t be surprised when your trade is trading at a different price, and you are wondering whether to buy at the lower price than you originally planned. Don’t get discouraged when your portfolio is way below your expectation, and the only thing you are thinking is how to pull out of this stock market madness. These are all normal occurrences.

When you are surrounded by these kinds of events in the stock market world, it’s likely that you will make mistakes. Here’s what these mistakes will do to your account:

You will make impulsive decisions.

You will sell something when it doesn’t deserve to be sold.

You will buy something when it doesn’t deserve to be bought.

You will take on excessive risk.

TD Ameritrade

Vs. Robinhood, Which One is Better?

Two of the most prominent names in the online stock brokerage game are TD Ameritrade and Robinhood, and many investors are considering trying both out.

I already praised Robinhood in a recent post, and the company has a lot of good things going for it, including its simple interface, its commission-free trades, and the large number of free tools provided.

Robinhood has also improved in other areas recently, such as the addition of cryptocurrency trading and allowing users to buy products like Apple stock.

But TD Ameritrade does have several selling points of its own.

Is TD Ameritrade’s stock trading app better than Robinhood? TD Ameritrade and Robinhood share a lot of similarities, as both are web-based brokerages providing retail investors with access to a variety of financial products.

Traditional brokerage firms fall into two categories – a full-service brokerage, or an online broker. TD Ameritrade is an online broker, meaning it doesn’t provide any investment advisory or investment management services.

TD Ameritrade’s retail trading platforms include both web-based trading and mobile trading. However, while Robinhood is available on phones and tablets, it isn’t available on personal computers.

Charles Schwab

When it comes to an online brokerage firm, it doesn’t get any more traditional than Schwab. Schwab has been around for decades and is a well-established leader in the industry. They offer a solid selection of investments and hold your money in a trust rather than in a separate company account, which is advantageous if you’re interested in the firm’s banking services. Schwab is one of the only online brokerages that offer a web version of their platform, and they even have both free and paid services. The basis for Schwab’s strength and success is the fact that they’re a conventional brokerage that doesn’t sell its own financial products.

If traditional is your thing, Schwab is a great option. If you don’t want to invest in products created by a firm that also services clients, Schwab may not be for you.

Conclusion

Robinhood is actually a great platform to trade and invest in stocks.

If You Are Looking For…

  • An alternative to Stocks.
  • A way to invest in stocks with zero fee.
  • A zero-fee trading app…

Then Robinhood is not a fraud.

Although there is a number of Robinhood alternatives, none of these will provide with all the features that Robinhood offers. Mind you, Robinhood is the only zero-fee platform in the market that allows you to trade stocks and commission-free ETFs. Robinhood also offers trading options for cryptocurrencies.

Robinhood brags about its simplicity, and feels that with all these extras, some of them might become a distraction for its users. This is why Robinhood choose to charge no trading fees.

Some would argue that charging no trading fee could prove to be quite easy; after all, Robinhood earns their revenue from interest rates of MONEY LOANS.

This is where Robinhood’s biggest competitor comes in.

Fidelity is the second most popular stock trading app.

Unlike Robinhood, Fidelity offers no-fee trades but charges an annual interest rate of 5% to maintain its accounts for investment gains.

Robinhood has been able to cover this interest rate by roping in other fund-raising channels.