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In January 2021, Robinhood took the unprecedented step of preventing its users from buying many stocks that were surging – such as GME and AMC. This left users furious and searching for alternative platforms to place their trades. We can help with that – keep reading to learn about the different brokers that offer alternatives to Robinhood.
Compare the best alternatives to Robinhood
So, what are the best Robinhood alternatives? Each of the platforms below represents a good alternative to Robinhood in both the UK and USA – and you can compare them quickly in our table to find the best broker for you. If you need more information and direct comparisons, keep reading below.
Robinhood vs other top brokers
Let’s take a look at how Robinhood performs in a head-to-head matchup against some of the other options available for users on the hunt for a reliable broker platform.
Robinhood vs Capital.com
Capital.com is a prominent CFD trading platform that, unlike Robinhood, has applied no trading restrictions on recently high-flying stocks such as GME and AMC. It charges no fees for trades, instead making its money through small spreads applied between the bid and ask prices of different assets.
The platform also has an extensive range of educational materials and a user-friendly mobile app you can use to place trades.
Robinhood vs Fidelity
Fidelity is another prominent online broker that has been associated with the surge in orders for Gamestop, AMC Entertainment, and BB stock. Unlike Robinhood, it has continued to allow its users to trade these assets as their prices rose and the platform has therefore made itself one of the leading Robinhood alternatives.
In general, Fidelity charges slightly more in fees than Robinhood – particularly when it comes to options contracts – but many investors see the range of different assets available to trade as worth this small extra payment.
Robinhood vs eToro
Israeli-based broker eToro is one of the biggest names in CFD trading. Widely liked for its wide range of tradeable assets and low fees, eToro also allows trading of certain cryptocurrencies – a market Robinhood currently doesn’t give access to.
Our full review of eToro can be found here, but it’s worth bearing in mind that the platform also placed certain restrictions on trades of GME shares as the price was soaring. If your reason for seeking an alternative to Robinhood is exclusively to trade these shares, then check our latest news to see if eToro has removed these restrictions.
How to find good alternatives to Robinhood
The best strategy to follow in order to find the best Robinhood alternative is to compare your options. Start by figuring out what you’re looking for in a broker: do you simply want to find a platform that lets you trade today’s hottest stocks freely, or are you searching for a long-term replacement broker that offers a better overall service?
Answering this question will help you refine your search, as there are a variety of pros and cons to any online broker. We can help you find your ideal broker in seconds with our helpful comparison tables, and below are some factors you should consider when weighing up your choice.
What to look for in an alternative stock broker
Here are the central things to consider when looking for an alternative stock broker with which to place your trades.
- Variety of trading options. The first thing you need to check is whether your chosen broker allows trading of the assets you’re looking for. This is particularly important when looking for an alternative to Robinhood as you might be particularly interested in trading certain stocks, such as Gamestop.
- Ease of use. A broker should help you trade effortlessly, not get in your way with a confusing or hard to understand design. Make sure the website or mobile app of your chosen broker is intuitive so you can spend more time trading and less time working out how to navigate around the broker.
- Low fees. When trading you want to make sure as little of your money as possible is being siphoned off in the form of trading fees. Especially if you’re making regular trades, even small fees can add up over time to cut into your profits or increase your losses unnecessarily.
- Account limits. Check the deposit/withdrawal, trading, and daily limits of any platform before signing up. You want to be able to trade exactly as much and as often as you would like, so don’t settle for less.
Why would I want to find an alternative to Robinhood?
Many people are currently looking for Robinhood alternatives because the platform controversially stopped people buying specific stocks.
After the Reddit community r/WallStreetBets started targeting specific stocks that were being shorted by prominent hedge funds, trading volumes on retail investing platforms such as Robinhood exploded. Stocks such as GME, AMC, and SPCE all saw big rises in value. However, just at the point that it looked like the Wall Streeters might be about to lose a fortune, Robinhood stopped users from being able to buy more of these shares.
This move enraged a lot of people – especially as the broker did not stop users from selling their shares. Many users decided to take their funds out of Robinhood and transfer them to a broker that still supports these trades.
How to move your funds to an alternative broker
If you’ve had enough of Robinhood and want to move your money to an alternative trading platform then these are the steps you need to follow:
- Close your positions on Robinhood
- Wait two days for the funds to ‘settle’ in your account
- Go to the ‘Transfers’ section of the ‘Account’ tab in the bottom right corner
- Enter the amount you wish to transfer and your bank account details (you can withdraw a limit of $50,000 a day)
- Open an account with your preferred broker
- Deposit your funds into your new broker account
- Open positions within your account
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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