Top rated Robin Hood competitor brokerage companies alternatives offering free or low priced trades.

Top Robinhood Competitors

Brokerage Firm Rating Stock & ETF Options Cost Mutual Funds Min To Open Review
Firstrade Firstrade rating $0 $0 $0 $0 Review
M1 Finance 4.5-star brokerage firm rating $0 na na $0 Review
WeBull Webull Rating $0 $0 na na Review
Ally Invest Ally Invest rating $0 $0 + $0.50 per contract $9.95 $0 Review
TD Ameritrade 4.5-star brokerage firm rating $0 $0 + $0.65 per contract $49.99 $0 Review

Best Free Brokerage Firms

Let's review the top Robin Hood competitor companies in 2020:

-  Firstrade offers the lowest commissions on all investment products in the industry. Their pricing is $0 for stock or ETF trades, and for mutual funds transactions. One of the main reasons it is THE BEST free brokerage firm is that unlike its competitors it does offer investing in mutual funds and bonds. There are no account maintenance or inactivity fees. Learn more ...

Promotion link: $0 commissions + up to $200 in transfer fee rebates.

Open Firstrade Account

-  M1 Finance offers a unique investing way for stocks and ETF's - customers create "pies" - the basket of stocks and ETF's that can be traded as one unit. There are no account maintenance or inactivity fees with this broker. Investors can open this top free brokerage account with $0 down. Learn more ...

Promotion link: Pay $0 broker commissions or fees when you open account at M1 Finance.

Open M1 Finance Account

-  WeBull is perhaps the least known among the top Robin Hood competitors. It offers no commission investing in U.S. stocks, options and ETF's. Unlike the other two competitors, almost all services are located on the smartphone app; website has very little functionality at this broker. Learn more ...

Promotion link: Get up to $1,500 Amazon gift card and 2 FREE stocks between $8 and $1000.

Open WeBull Account

Robinhood Pros

As far as trading individual securities goes, Robinhood has a lot of advantages over its competition. Mainly, the ability to make trades without losing any profitability to trading fees or commissions means that users can make small stock purchases without running up losses to trading fees. This makes Robinhood as well as a higher rated commission-free broker, Firstrade, is ideal for someone who is new to investing, or someone who wants to open an account separate from their other accounts to manage a completely separate risk profile without mingling their Robinhood portfolio with a more balanced one.

Compared to other top Robinnhood competitors, like Fidelity Investments, E-Trade, TD Ameritrade, and other more mainstream securities trading apps, Robinhood's biggest real advantage is the lack of transaction fees. While users are somewhat limited in their buying power (capped at the value of their portfolio plus a small cushion allowing for new traders to start trading right away before funding their account), Robinhood allows users to purchase increased buying power with its monthly paid subscription program Robinhood Gold. Robinhood Gold costs between $6.00 and $10.00 per month depending on the amount of extra buying power the user wishes to purchase.

Robinhood Cons

If you are investing on a scale where transaction fees are insignificant compared to your overall balance, Robinhood does not have much to offer you, especially because it lacks many features that would be considered industry-standard for any mainstream securities trading platform.

Robinhood Investments Review

For advanced traders, the biggest turn-off will be that Robinhood has no advanced trading platform or tools. Any trading strategy more complex than buy low, sell high (or buy low, and hold until you retire) will simply not work on Robinhood. Serious traders who need more tools in order to make investing worth their time should take a look at TD Ameritrade.

Another big downside is that Robinhood is not a great tool for investing in foreign markets. Some international ETFs can be purchased on Robinhood, but most individual securities initially registered on foreign markets will not be accessible. The unavailability of these markets on Robinhood is not advertised to the user until after the user has already made a search for that security and decided to purchase or sell it. For more serious traders, or even for amateurs or people looking to build their portfolios on their own, this can be a significant limitation.

Robinhood also lacks useful investment research tools. For traders who have access to free research tools at other brokers, this is not a major issue because any security the user wishes to purchase can be researched elsewhere.

Continue Reading


Robinhood Competitors reviewed by Rating: 5