If You Are Looking for An Alternatives To Robinhood After The Broker Restricted Trading Services, Look At These
For a few years now, more and more people are deciding to enter the stock market, options and even the crypto market. Their popularization is due to the number of brokers that exist on the web and that have greatly facilitated this investment task. Of these, the most famous in recent months is undoubtedly Robinhood, a platform that offers many advantages and is simple even for newcomers.
However, the latest movements of this broker have caused many users to look for alternatives to Robinhood (we will explain why). Are you one of them? Then we at Noticias Diarias 24 will introduce you to the best alternatives to Robinhood investment apps.
Why did Robinhood become famous and why did they start abandoning it?
One of the things that made Robinhood great was that it eliminated most of the complicated tasks of stock trading. With this platform anyone can start trading in a matter of minutes, as its learning curve is low, plus it has a very intuitive charting system.
However, this is a double-edged sword, because many users begin to believe that investing is like a game and there is nothing further from that. As we recommend in all our articles on these topics: read a lot, educate yourself and practice before you start trading.
Going back to Robinhood, another reason that made this broker famous is the variety of assets you can trade. There are many and they are separated into three major groups: fractional shares, cryptocurrencies and options. Finally, the other great attraction of the platform is its 0 commission policy when trading, something that breaks a lot with other platforms.
But, if it is so good, why are people looking for alternatives to Robinhood? In January 2021, Robinhood took the unprecedented step of preventing its users from buying many stocks that were rising, such as GME and AMC. This left users furious and looking for alternative platforms to do their trading.
How to find good alternatives to Robinhood.
The best strategy to follow to find the best alternatives to Robinhood is to compare your options. Start by figuring out what you are looking for in a broker: do you simply want to find a platform that allows you to trade today’s most popular stocks freely, or are you looking for a long-term replacement broker that offers better overall service?
Answering this question will help you refine your search, as there are a variety of advantages and disadvantages to any online broker. We will now present a brief list of some of the brokers you can opt for instead of Robinhood.
Webull, the closest alternative to Robinhood’s experience
If you are looking for a broker as alternatives to Robinhood, then Webull is what you need. Its interface is just a little more complicated to understand, but it has: real-time quotes, instant settlement of funds to trade immediately after making a deposit, trading cryptocurrencies, stocks, options and more. In fact, it even includes a premium subscription (Level 2) that allows access to insights on some assets, as well as a 0-commission system when trading.
A weakness compared to Robinhood? Although you can trade stocks, unfortunately Webull does not have fractional shares, which can be an impediment to acquiring certain assets if your capital is not large enough. Mind you, Webull also blocked trading in GameStop and other assets at the time.
Revolut, an app that will revolutionize the way you manage your money.
Although it is not a broker itself but rather a kind of payment processor, the truth is that Revolut has a little bit of everything to be considered an excellent alternatives to Robinhood.
You can use it solely as a digital wallet to store your money and make payments to other people on and off the platform. However, you can also apply for your own Visa or MasterCard debit card compatible with over 120 currencies, switch between them quickly and invest in some fractional shares or cryptocurrencies.
Most transactions have zero fees (depending on the plan you have). And, although it does not have very specialized technical analysis tools, the truth is that it is an effective way to get started in this investment thing. It is a fairly new Fintech that is worth keeping an eye on and even allows you to buy fractions of shares.
TD Ameritrade, a broker full of amazing investment tools.
Although its mobile app is a bit limited compared to the desktop version, TD Ameritrade deserves to be on this list. It allows you to trade stocks, ETFs, futures, options, mutual funds and even bonds, something few brokers do. Its platform is ideal for beginners.
However, the best thing about TD Ameritrade and what makes it a suitable alternative to Robinhood is not what we mentioned above, but its Thinkorswim platform. Unlike other tools, Thinkorswim offers lots and lots of features for very comprehensive technical analysis. It also has small investment courses that are very useful and are offered in synchronous format with instructors or asynchronous. Anything else? It has a personalized training system and they hold group workshops from time to time.
Coinbase, a secure broker
Although there are more complete platforms that allow you to buy Bitcoin and other cryptocurrencies for trading, none of them beats Coinbase in one thing: security. What is so special about this broker? It is a regulated platform that works closely with institutions so that the crypto market grows in accordance with the law.
You can deposit funds through a wire transfer or with your credit card and it is an extremely easy to use platform. They constantly have promotions and airdrops that help you earn some free cryptocurrencies and tokens, in addition to their own savings program (staking). Apart from that, it is one of the best alternatives to Robinhood as their app is so secure that you can’t trade without verifying your identity.
Degiro
It is a Dutch broker with a strong presence in the European market. Here you can trade stocks, funds, ETFs, options, bonds and futures in a simple way. In fact, its application is quite interactive, to the point of winning a couple of awards as best stock trading app from the Financial Times and Investors Chronicle.
Does it have commissions? Unfortunately, yes, but they are quite low compared to other alternatives to Robinhood and they do not charge on everything. A couple of examples of this is that Degiro does not charge maintenance or dividend collection fees (except for a small 0.1% commission if you switch to a currency other than the euro). Also, the Spanish market is exempt from custody fees. Something we do not like. Although other fees are exceptionally low, the portfolio transfer is quite expensive and sometimes hangs up.
What to look for in an alternative broker
Here are the core things to consider when looking for an alternatives to Robinhood broker to place your trades with.
- Variety of trading options. The first thing to check is whether the broker you chose allows you to trade the assets you are looking for. This is particularly important when looking for alternatives to Robinhood as you might be especially interested in trading certain stocks, such as GameStop.
- Ease of use. A broker should help you trade effortlessly, without getting in your way with a confusing or difficult-to-understand layout. Make sure your chosen broker’s website or mobile app is intuitive so you can spend more time trading and less time figuring out how to navigate the broker.
- Low fees. When trading, you want to make sure that as little money as possible is siphoned off in the form of trading fees. Especially if you trade regularly, even small fees can add up over time to reduce your profits or increase your losses unnecessarily.
- Account limits. Check the deposit/withdrawal, trading, and daily limits of any platform before you sign up. You want to be able to trade exactly as much and as often as you want, so don’t settle for less.
Why would I want to find a broker other than Robinhood?
Many people are looking for alternatives to Robinhood because the platform prevented people from buying specific stocks. We at Noticias Diarias 24 will tell you why this happened:
After the Reddit community r/WallStreetBets started targeting specific stocks that were being shorted by major hedge funds, trading volumes on retail investment platforms like Robinhood exploded. Stocks such as GME, AMC and SPCE experienced large increases in value. However, just at the moment when it looked like Wall Streeters were about to lose a fortune, Robinhood prevented users from being able to buy more of these stocks.
This move angered many people, especially since the broker did not prevent users from selling their shares. Many users decided to pull their funds out of Robinhood and transfer them to a broker that still supports these trades.
