The Robinhood app has made a big splash in the investment world.
With this app, you can invest in stocks and a variety of other assets from your smartphone, and you don’t need any investment experience to get started.
However, Robinhood isn’t the only app for people who want to invest via their smartphone. There are a variety of other apps on the market that are designed to make investing more convenient and fun.
While Robinhood is great for beginners, it can be limiting for those who want to dive deeper into investing. In this article, we will compare a variety of investment options, all of which you can access from your smartphone.
These options offer many of the same benefits as Robinhood, such as limited fees and user-friendly features, but might be a better fit for you if you don’t find success with Robinhood, or just want to try something different.
What is Robinhood? Pros and Cons
Robinhood has quickly become one of the most notable investment apps available because it offers completely commission-free stock trading.
For those who have never invested before, Robinhood provides a very easy point of entry, because all of its features are very user-friendly and don’t overcomplicate the investment process. Robinhood also doesn’t require any account minimums to get started.
While most of Robinhood features are designed for the total investing beginner, you can access more advanced investment tools by signing up for their paid subscription, Robinhood Gold.
Learn how to get $100s in free Robinhood stocks!
Although Robinhood provides many unique advantages for investors, there are some downsides to using this platform. The biggest disadvantage of using Robinhood is that they do not offer advanced analytics.
This makes it very difficult to trade actively, because you don’t have access to the most current and detailed information about stocks and other potential assets. They also do not offer mutual funds, and you cannot start an IRA or other retirement savings account through this free trading app.
Luckily, there are many other platforms out there that provide similar benefits to Robinhood, while also offering more advanced investment tools. When looking for an alternative to Robinhood, keep an eye out for low fees and a platform that is easy to use on both mobile phone and desktop.
Regardless of which investment platform you ultimately choose, the entire experience should be convenient and stress free, and should give you the resources to achieve your long-term financial goals.
Commissions: Webull is one of the only services that offers commission free stock trading for intermediate level investors. However, there are some SEC fees and wire transfer fees.
- Webull features advanced analytics tools you can use to make up-to-the-minute trades.
- They also have tools that will teach you a new investing strategies and allow you to practice before implementing them with real money.
- You can access after hours trading, and it’s also one of the only Robinhood alternatives that will allow you to short sell.
While there are many apps right now that target total beginners and passive investors, there are very few tools available for young active investors who want to grow their wealth.
Webull bridges the gap between professional investing platforms and beginner tools, so it’s truly appropriate for intermediate level investing.
Webull has incredibly detailed data charts, and all data is completely in real time.
They have a financial calendar feature notifying you of important dates, and you can set notifications for certain stocks that you have your eye on. There is also a detailed search feature to help you find new potential investments, and you can read data analyst reports about each stock.
If you want to try out a new investment strategy, you can test it out on their unique trading simulator before putting it into practice.
You can trade stocks and ETFs with Webull, and you can also opt to trade on margin. There are no commission fees for trades on this platform, and there are no minimum balances for most trades. However, if you want to trade on margin, you need a balance of at least $2,000.
Webull also offers after hours trading from 4am to 8pm.
When compared with other investment apps, they have incredibly responsive customer service.
The sheer number of features on this platform makes it very appealing to investors looking to improve their skills and make active trades. However, for the total beginner, this platform can be a bit overwhelming.
You may want to start somewhere else to get the basics down, and then switch to Webull when you are ready for more advanced active trading, but still want the convenience of no fees and app based trading.
Learn how to get $100s in free Webull stocks!
Note: when you open a Webull account, you will get 2 free stocks! (Potential value of $1,500)
Commissions: Matador is another free stock trading app that charges no commission fees, and they don’t have deposit or withdrawal fees either.
- Matador is a very unique platform that takes investing and makes it fun with a social media approach. It’s aimed at ambitious millennials who want to get started with investing.
- Although it is not intended for day trading, Matador has some of the analytics features you need to make informed active trades.
- Matador’s clean, simple design makes it easy to make quick trades at the touch of a button.
Matador is one of the newest alternatives to Robinhood, and it stands out because of its social media features.
On this app, you can share your trades with your friends, and you can see what stocks other people have been trading too.
This is a fun way to find new potential investments, and can make investing fun even if it’s not something you are normally interested in.
Matador is completely free and has no account minimums, so it is very easy to get started.
The app caters to millennials, and provides a fun point of entry into stock trading. Making trades is very easy; however, there are limited trading features, and you can’t use the app to open any retirement accounts.
Some investors may find this app limiting. However, as one of the newest low-fee investment apps out there, we can expect Matador to change over the next few years to compete with Robinhood and similar platforms.
3- M1 Finance
Commissions: M1 Finance offers free automated investment services that are perfect for passive investors.
- M1 Finance is perfect if you’re interested in investing, but don’t want to spend money on firms with huge investment fees.
- They also provide features that are appropriate for beginner investors, but the analytics are detailed enough for those at the intermediate level as well.
- If you prefer to trade passively instead of constantly monitoring your investments, M1 Finance is going to be an incredible Robinhood alternative for you.
M1 Finance is a unique automated investment service that gives you more control over your money then traditional robo advisors.
When you sign up, you will fill out several questions about your savings goals and your current finances.
Then, you will be asked to allocate an amount to your potential investments in percentages. You can choose from investment categories or pick specific stocks, depending on your preferences and investment knowledge.
This is displayed in an easy-to-read pie chart. You can add stocks and trade on the New York Stock Exchange or NASDAQ on your profile, but M1 Finance also makes it easy to build a portfolio even if you’re not sure what stocks you want to invest in.
They have 80 different expert portfolios to choose from, which makes the process simple and stress-free.
If you are looking to invest in a retirement fund, M1 Finance is a good option for you.
They allow you to set up an IRA using their platform, and they will encourage you to make regular contributions to your account, so you can continue to grow your wealth. You can also set up automatic contributions to your account, regardless of what type of investments you are making, so that you don’t have to do it manually every time.
When compared with Robinhood, M1 Finance is more for passive investors.
They do not allow you to trade stocks quickly, and the platform is not designed for active day trading. Although they say there are no account minimums, you really need at least $100 to start your investment account.
However, they are one of the few robo advising companies that offer zero commission stock trading and investments.
Commissions: Betterment offers low-fee trading, with rates ranging from 0.25% annually to 0.4% for premium users with larger accounts
- Betterment is designed to be simple for passive investors, with 12 ETF classes to choose from when creating your portfolio.
- It’s also one of the only robo advisors that does not have a minimum account requirement. This makes it ideal for young people or those who are completely new to investing and don’t want to take a huge financial risk.
- Betterment is very goal-oriented. The program will create your portfolio for you based on your financial goals and preferences, which you will provide during the sign-up process.
If your main goal of investing is to save for retirement, then Betterment is a very viable alternative to Robinhood for you.
When you sign up, you will choose your preferred risk level, and then answer some questions about your long-term financial goals and current financial situation.
You have the ability to set up taxable investment accounts, but you can also set up IRAs and trusts.
Based on this information, betterment will help you create a diversified portfolio. The goal is to balance the risk level with the potential reward. You can always go back into your portfolio and customize it at any time.
One of Betterment’s most helpful features is there are automatic portfolio rebalancing, which will adjust your portfolio based on your preferences automatically to reflect the conditions of the market, so you’ll make more money in the long run and don’t have to stress about adjusting it manually.
You can also set up automatic deposits so that you continue investing long-term.
Betterment is very simple to use even for beginner investors, and has a very appealing and intuitive layout.
However, it may not be the best choice for active investors, because there are no functions for day trading. Instead, they take a long-term approach to growing your wealth.
Commissions: Acorn charges a fee ranging from $1 to $3 per month.
- Acorns is intended for those who are new to investing or are reluctant to invest. It rounds up your purchases to the next dollar and then invests the spare change.
- Acorns also has cash-back partners, and you will get more money to invest when you shop with those partners.
- Acorns gives you the option to choose your portfolio based on your risk tolerance. However, you only have access to low cost ETFs from BlackRock and Vanguard.
Acorns was one of the first apps to offer simplified investing for beginners.
Their concept is unique, because you are investing small amounts of change rounded up from your purchases. If you don’t want to think much about your investments, this is a good option for you, because the app does most of the heavy lifting for you.
However, if you want more control or choice over where your money goes, this may not be the best Robinhood alternative for you.
Acorns only allows you to choose portfolios of ETFs, so you don’t have many options when it comes to where your money is going.
They also don’t offer any advanced insight or analytics that you can use to make investing decisions.
If you are a total beginner, this could be an advantage, but if you are looking to really grow your wealth, it’s more likely to be a downside.
For total beginners, the small fees and lack of minimum balance requirements makes it easy to get started.
However, it’s important to keep in mind that since you are investing very small amounts, the fees actually add up to a decent percentage of what you are investing.
You may get a better deal using one of the other Robinhood alternatives mentioned here, which don’t have fees at all, and also don’t require a minimum account balance.
Robinhood Alternatives Conclusion
If you want to invest via a stock trading app, you have several options besides Robinhood to choose from.
Whether you want to save for retirement with an IRA, or you want to invest actively and learn more about the stock market, you can now do so through your smartphone.
There isn’t one best app for investing – it really depends on your personal financial preferences and goals.