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Highlights
- Robinhood is a United States-based free trading platform that enables US investors to invest their money on a wide array of financial instruments like stocks, exchange-traded funds (ETFs), options, digital currencies etc.
- The trading platform has gained traction from millions investors since its inception in 2013.
- Its business model also appears to have influenced some of its peers to follow suit and explore low entry barrier for investments with no commission or minimum deposit requirements.
Robinhood is a United States-based free trading platform that enables U.S. investors to invest their money on a wide array of financial instruments like stocks, exchange-traded funds (ETFs), options, digital currencies etc.
One of the factors that makes this application unique is that it is said to allow commission-free investing without a requirement to maintain minimum deposits.
Co-founded by Vladmir Tenev and Baiju Bhatt, two graduates from the Stanford University, Robinhood reportedly aims to build a democratic platform which enables allowed people to trade without transactional charges.
The trading platform has gained traction from millions investors since its inception in 2013. Its business model also appears to have influenced some of its peers to follow suit and explore low entry barrier for investments with no commission or minimum deposit requirements.
Also read: What do Canadians need to know about crypto ETFs?
Robinhood has not branched out of the United States since its foundation. However, there have been some investment platforms that offer similar if not the same features in other geographies.
For instance, here are some of the best alternatives to Robinhood for Canadian investors to explore.
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1. Wealthsimple Trade
Wealthsimple Trade, which is said to be a part of the Canadian ShareOwner Investments Inc, allows Canadians to make commission-free investments with zero charges for account maintenance and minimum deposit requirements.
Founded in 2019, this Canadian trading app includes investments related to stocks, ETFs, and digital currencies.
Wealthsimple is said to enable users to avail tax benefits by opening registered retirement accounts. Plus, sign-up bonus for opening an account and depositing money makes it advantageous for investors.
However, trading in US stocks or ETFs involves foreign conversion fees of 1.5 per cent, which can be considered a drawback if you are investing in foreign stocks.
2. Qtrade
Qtrade is not a commission-free investment interface, but it simplifies investment experience for both newcomers and experienced traders.
The app is said to charge investors if one trades in over 100 ETFs. However, Qtrade is reportedly free if an investor trades in less than 100 ETFs, which can make it ideal for beginners.
However, Qtrade also charges quarterly account maintenance fees of $25, which can be waived off if certain requirements are met by investors.
3. Questrade
Questrade allows investors to invest in ETFs and options trades for low commission. The platform is said to charge one cent per scrip with charges ranging between $4.95 and $9.95.
Questrade is often said to be ideal for investors who are interested in risky investments like over-the-counter stocks or options.
Which Canadian platform is best for you?
While selecting a suitable investing platform, investors should ideally look at the fee structure, variety of investment options available, research and support solutions, user-friendly interface and account requirements interface.
Every investor has a different financial background, risk capacity and knowledge base, which means each person should select an investing platform that suits them the best based on their financial and risk profile.
Also read: 5 best Canadian crypto & blockchain stocks of 2021
