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Robinhood alternative platforms and apps for discount online investment
The Robinhood platform is a trading App you can use to buy fractional shares of stocks, don’t need account minimum and you can trade in options.
This platform is for the do-it-yourself trader/investor.
Robinhood was among the first group of Apps not to charge fees to buy and to sell stocks and index funds. This is one of the features account holders really like about the App.
For small investors, it’s also important to place funds where they can buy and sell at any time. Also, where they can have access to their funds without restrictions, liquidity.
If you’re reading this, chances are you’re a DIY investor who knows what’s going on with Robinhood and perhaps are looking for alternatives.
A quick summary for why now many are looking elsewhere to invest/trade, instead of with the Robinhood App.
There was an uprising by rebel investors (mainly retail small investors) over at the Reddit platform.
They bet against hedge funds on Wall street who were shorting (betting against) the stock of GameStop, among others.
Some of the hedge funds lost billions when the rebel investors drove the price of GameStop up by buying it.
Robinhood and other Apps like it placed trading restrictions on these stocks. These restrictions came about mainly after the rebellion over at Reddit.
What are investors to do when they can’t do whatever they want and whenever they want with their money?
Apparently many are looking for other options.
Before Robinhood and the likes came on board, there were the online discount brokers who charged affordable fees for buying and selling stocks.
Most of these discount brokers modified their fee schedules and other features to be more competitive with the new investment Apps.
So, if you’re looking for Robinhood alternatives, discount brokers may be your best place. Some of these have actually eliminated trading fees for investors who don’t need a broker assistance.
Related Content for DIY Investors:
- 6 DIY Investment platforms
- Investing in a DRIP
- Simple ways to invest in index funds
- Setting up passive income investments
Before moving on from Robinhood understand;
- Why are you trading or investing – your goals
- What is your risk tolerance – how much can you afford to lose
- How are you going to trade or invest – read and absorb investing related information. What are the products available to meet your goals?
Here are 6 Online Discount Brokers with comparable features.
These brokers offer basic features such as;
- User friendly mobile Apps and website
- Stock research
- Options trading (some only)
- Some customer service
- Some with no account minimum
Public
This platform calls itself an investing social network. Members can buy fractional shares of stocks and ETFs, follow other investors (creators) and share tips and ideas on the creators’ community.
So, a feature of this investment platform is the “social” part, where investment themes are discussed.
The main goal of Public is to open up the stock market to people who traditionally don’t participate in it.
The company tries to address this lack of participation by; having no minimum required and by including people who traditionally don’t take part in the market.
This platform offers basic stocks investing services.
Charles Schwab
Schwab was one of the early brokers to offer online discount services. The platform was a disruptor to the more traditional full service brokers. Its commission were lower than the full service brokers.
After Robinhood and similar Apps opened up for business, Charles Schwab, began to offer online commission-free stocks trades. Note that if you use a broker assistance there is a fee to buy and sell stocks.
This platform offers basic and some more advanced stock trading. You can trade in stocks, bonds, options, over the counter stocks, ETFs and mutual funds.
Webull
This is a newer platform and it’s best for active stock traders who are also able to do their own analysis.
Webull is first a mobile platform with compatibility for Androids and iPhones. It also offers a web based platform.
This platform offers commission free trades for stock, ETFs and options.
Webull is a basic broker and doesn’t offer more advanced investment products.
Vanguard
Vanguard is a good choice for longer term investors, not so much for active traders.
Vanguard is a leader for investing in ETFs and mutual funds across many industries. Most of these funds have low administrative fees.
If you are a long term investor like one saving for retirement, Vanguard has many low cost options. However, if you’re an active trader this platform may not be ideal for you.
In addition to fund investing, Vanguard offers no commission on stocks and option trades.
This platform is for active traders able to do their own research and use the company’s tools. You can trade in stocks, bonds, ETFs, options and mutual funds.
Zacks offers low trading fees, starting at .01 per trade and it does have a minimum account opening of $2,500. Traders have a number of analysis tools available.
This platform is a robot adviser (auto pilot) unlike Robinhood. One of the objectives is investing in the stocks of socially responsible companies thru ETFs.
If you’re into social responsibility and also want to invest in basic financial products, Wealthsimple may be right for you. It offers low cost ETFs and saving accounts.
The platform’s slogan is “Get rich slow” in reference to the tools it offers to invest your spare change in the stock market.
Final Thoughts
People are looking for alternatives to Robinhood, a low cost and easy way to invest with small sums of money.
The reasons for the outflow from Robinhood are a few, the latest one the way the platform handled trade restrictions after the Reddit investors ran up GameStop stock’s price.
However, Robinhood like other stock brokers, has faced other ethical inquiries by the SEC (Securities and Exchange Commission) in the past.
The 6 stock platforms above are alternatives to start investing or to upgrade your stock brokerage account without incurring high fees. They also represent choices for active traders and for longer term investors.
