5 Best Robinhood Alternatives [2021]

If you’re ready to delete the Robinhood app and move on from their shady practices then keep reading to find the best Robinhood alternative for your money.

In this article, I’ll break down the many reasons to leave Robinhood then suggest a few solid alternatives that won’t treat you like crap.

What is Robinhood?

Robinhood was one of the first stock trading apps to offer commission free trading in 2021. Many younger investors (millenials) trade using the app and it has become an extremely popular investing app.

However, Robinhood took a turn for the worst after the Gamestop short squeeze when Robinhood stabbed traders in the back with ridiculous trading restrictions and forced selling positions to protect the pockets of their greedy short selling clients.

Why Switch From Robinhood?

Millions of investors are looking for a good Robinhood alternative after Robinhood restricted on 50 stocks due to high buying volume.

The truth is Robinhood wants to protect its biggest customer, Citadel, who is a notorious short seller and profits from Robinhood’s order flow data.

Robinhood also forced traders to sell positions in Gamestop (GME) for massive losses to protect the pockets of these corrupt short sellers.

As a long time Robinhood user, I deleted the app and withdrew all my funds from Robinhood.

Why You Shouldn’t Use Robinhood Anymore

Not only does Robinhood steal from the poor and give to the rich, but they are a terrible brokerage all around. Here’s a few reasons why:

  • No IRA/retirements accounts
  • No beneficiary in case of death
  • Poor customer support
  • Restricting buying on heavily shorted stocks to protect short sellers
  • Forced selling people’s stocks without their permission

Bottom line: Robinhood makes money by selling your data to short sellers like Citadel who profit from the order flow. They are loyal to their true customers (short sllers) not you.

Robinhood treats you like crap because YOU are the product they sell to rich short sellers. They will do any and everything to protect them instead of you.

What to Look for an a Robinhood Alternative

  1. Integrity
  2. Commission free trading
  3. Stocks, Options, and Crypto
  4. No trading limitations
  5. No forced Selling
  6. Same day customer service response times
  7. Instant deposits that allow you to trade intraday

What Can You Do Next?

If you own stocks in Robinhood then you can simply transfer your account to another brokerage or sell all your positions and withdrawal your funds.

Many brokerages offer account transfer and the process is super simple.

Best Robinhood Alternatives

Below is an in-depth breakdown of each recommendation.

1. Webull – Our Top Pick

We choose Webull as our over favorite Robinhood alternative because of its app design & layout, commission free trades, crypto trading, and 2 free stocks promotion.

Many former Robinhood users want a simple to use trading app that supports stocks, options, and cryptocurrencies.

Trade Stocks, Options & Crypto for Free

You can trade all 3 of these commission free on Webull plus the Webull app offers much better trading charts and market wide information than Robinhood does.

Webull supports NASDAQ, NYSE, AMEX, and foreign ADRs listed on major US stock exchanges. OTC stocks are not supported.

Tradable cryptos on Webull are:

Margin Trading & Short Selling

You can also trade on margin and short sell stocks too.

Margin accounts require $2,000 or more to qualify. Balances from $2,000 to $25,000 have a 6.99% margin rate and the rate decreases as your balance gets bigger.

Webull margin rates

Full Extended Hours Trading

Another benefit is Webull’s full extended hours trading for premarket (4am to 9:30am EST) and afterhours (4pm to 8pm EST). This is a huge upgrade from Robinhood’s 9am to 9:30am premarket trading hours. You can catch a lot of hot stocks much earlier than the rest of the market on Webull.

Things Missing from Webull

  • No DRIP (dividend reinvestment plans)
  • 24/7 Phone Customer Support

Overall, Webull is the best Robinhood alternative in my option and I simply moved my funds to Webull and deleted the Robinhood app.

2. Fidelity – My Top Full Service Brokerage Pick

If you want Robinhood features like fractional share trading and DRIP (dividend reinvestment) then Fidelity is my recommended choice.

Fidelity was one of the few trading apps that placed zero buying restrictions during the Gamestop short squeeze and I highly respect them for that.

I’ve been loyal to Fidelity since I opened an account with them in 2006.

Many ex-Robinhooders will enjoy Fidelity although you cannot trade cryptocurrencies there right now.

Commission Free Stock Trading (Small fee per options contract)

Fidelity is a legit stock trading app with 24/7 phone customer support so it’s not 100% free like Robinhood.

Fidelity supports stocks on major US stock exchanges as well as OTC stocks.

If you want to invest in OTC stocks & ADRs not listed on the NYSE or NASDAQ then Fidelity is a solid choice.

Stocks, ETFs, and Options are commission free but you have to pay 65 cents per options contract. You have to apply for options trading and Fidelity may reject your application for a number of reasons.

If you’re an options trader then switch to Webull instead.

Fidelity does offer fractional share trading (online app only) and automatic DRIP for dividend stocks. Remember to turn on DRIP inside account seetings because it’s not setup automatically.

Marging Trading & Short Selling

Fidelity supports margin trading starting at 8.325% rates for balances under $25,000. You must apply for a margin account to short sell stocks.

Exteneded Hours Trading

Fidelity’s extended hours trading ranges from premarket (7am to 9:30am EST) and afterhours (4pm to 8pm EST).

You must call Fidelity first to unlock extended hours trading on your account.

3. SoFi – Best App for Millenials

Facebook revolutionized social networking while SoFI plans to revolutionize finance for everyone.

SoFI (short for Social Finance) is a finance app that offers banking, credit, investing, and loans all under 1 app.

SoFi is backed by billionaire investor Chamath Pilihapitiya under his spac Social Capital Hedosophia Holdings VCorp (NYSEL IPOE).

Trade Stocks & Crypto commission free

SoFI supports US stocks only on major US exchanges (NYSE & NASDAQ), ETFs, and cryptocurrency.

Fractional share trading is supported on the app but you cannot DRIP automatically.

Tradable cryptocurrencies are:

  • Bitcoin
  • Ethereum
  • Litecoin
  • Bitcoin Cash
  • Ethereum Classic

Follow Other Investors & Track Top Performing Portfolios

One of the nice features about SOFI is the ability to track other top performing investors on the platform.

You can follow other investors and track their performance & portfolio holdings.

Everytime someone you follow makes a trade, you will see a notification on their profile page.

Things Missing from SoFI

Other members can comment on your activity and you can interact with your followers like Facebook or Twitter.

  • No options trading, margin trading, or short selling
  • No DRIP (dividend reinvestment plans)

Overall, I like SoFI and knowing Chamath is behind this company makes me trust it more.

Get $50 in free stock when you join SoFI

Deposit $1,000 or more in an active investing account a get $50 in free stock (choose from many stocks like Tesla, Amazon, Gamestop, or AMC)

4. M1 Finance

This revolutionary investing ap is critical for someone looking to build a free portfolio for long-term use.

It is not for people who are day traders, and it does not allow you to buy and sell stocks as quickly as Robinhood.

Instead, this app offers commission-free investing, the ability to invest in fractional shares, and automatic deposits. It offers a hybrid platform, which acts as a traditional investment management service and also a Robo-advisor. Making it one of the best Robinhood alternatives.

5. Firstrade – Best for Non-US Investors

Other Robinhood Alternatives Worth Mentioning

TD Ameritrade

Cashapp

Ally Invest
This investing option acts as a discount brokerage firm and a partner of Ally Bank. You do not need to be an Ally Bank customer to use Ally Invest, but it makes the initial setup process seamless and stressfree. It offers a host of trading analysis tools on their built-in desktop platform, also called their “dashboard.” On the dashboard, you can regularly check on a list of stocks of your choice. Ally Invest allows you to buy and sell stocks, bonds, and mutual funds plus more.

Betterment
This investing application makes investing simple, beautiful, and free. One of the best Robinhood alternatives, they are known as the smart money manager. This company has over 13 billion dollars in assets on this online investing tool. Betterment is essential for intermediate investments, retired investors, and college students wanting to invest.

Interactive Brokers
Interactive brokers are essential for professional traders or people who trade frequently. They offer some of the lowest trading fees; users pay $0.005 per share when buying and selling stocks. This application comes with a mobile app that has the same functionality of the desktop version. This particular investing option is not good for beginners.


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Tarik Pierce

Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website. He studied Economics at Dartmouth College and invests in a mix of dividend stocks, high CAGR tech stocks & cryptocurrencies.

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