Picking a good Australian stock broker is vital. There are so many things that need to be considered and we will show you everything you need to know.
Here is a list with the best online trading platforms.
Robinhood is only available in the United States. However there are many good alternatives:
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|Info||Best for Social Trading||Lowest Minimum Deposit||Best For Options Trading|
We recommend real shares trading instead of CFDs. eToro Disclaimer: 67% of retail CFD accounts lose money.
Robinhood Australia Commissions
Robinhood is not available in Australia yet, but we hope that they will be available to Aussies one day.
Let’s see what the US customers pay.
Unfortunately, many online stockbrokers require users to pay a commission which can be very expensive, especially if the site is reputed.
Fortunately, you will not encounter expensive commission with Robinhood because they do not require a commission from customers. This is especially great because their interface is smooth and informative, which helps you invest wisely.
|US Shares, ETFs and Options||$0|
|Opening Cash Management Account||$0|
|Maintaining Cash Management Account||$0|
You may be wondering how Robinhood makes money if they do not charge commission. They do this by analyzing your data and selling it to tech firms. Even though this may seem worrying, it is standard practice that major companies such as Facebook and Instagram do as well.
Like Robinhood, an increasing amount of online brokers are letting users access their services without paying a commission.
Robinhood caters to American users and is, therefore, a US-based site. Trading can be more expensive for users that are located anywhere else because they have increased the trading rates for non-US users.
Robinhood Account Set-Up
If you want to set up a Robinhood account, you should know that you are not required to make a minimum deposit.
The process of creating an account is easy and quick so you can start trading almost immediately.
Unfortunately, your credit or debit card cannot be linked to the account because the site does not allow its users to trade with them.
Will You Be Penalized?
Some stockbrokers penalize their clients for various reasons. This is especially true of major names in the game.
There are numerous reasons why users of online trading platforms can be penalized. For example, backing out of purchases or account inactivity for extended periods of time, which would require payment to reactivate.
Fortunately, Robinhood Australia does not enforce such penalties and it is completely free to access.
What is the Membership Process Like?
If you have a Robinhood account, you will appreciate the fact that its services are free. However, it offers premium features that are hidden to normal users and they can only be accessed by becoming a Robinhood gold member.
In terms of the perks, users gain access to Morningstar reports, Level II streaming quotes and margin trading which is all available for $5 USD a month.
Many Robinhood users say that the gold membership is useless because you can get the paid features for free from other sites.
Of course, these sites do not offer reports that are as extensive as Robinhood.
Availability in Australia
Unfortunately, not everyone can open a Robinhood account because the site has restricted access in certain countries, including Australia.
This is unfortunate since a large number of traders reside in Australia. People living in Australia may not be able to use their services and work with them in the way they expect, despite appreciating the services they offer.
To invest in stocks, you need to be as informed as possible by reading the latest reports and becoming educated. Fortunately, most online brokers offer users the latest reports, including Robinhood.
Robinhood constantly updates you with the latest news on stocks to help you make the best purchase. On the other hand, the reports you’re getting won’t be extensive unless you pay for Robinhood Gold.
This is a shame as Robinhood’s competitors offer such services for free.
Be A Better Trader
Many online brokers offer users trading ideas that are based on research and reports which helps users invest smarter. Unfortunately, Robinhood does not offer trading ideas but it is important to work with such sites in the long run.
This factor might affect your decision to work with them or not. You could come up with trading ideas yourself by going through their news reports and research, but as mentioned, Robinhood doesn’t offer thorough reports unless you’re a gold member.
What Do You Want To Trade?
Robinhood allows you to trade several things in addition to stocks.
You can work with stocks as well as cryptocurrencies and exchange traded funds (ETFs) which means that you don’t have to switch between platforms for each.
Ease Of Use
In terms of availability, the fact that it is unavailable in certain countries might be a huge drawback. However, access is not restricted according to the type of device you are using. Robinhood is available on all computers and mobile devices, irrespective of their operating systems.
Furthermore, its interface is known to be very easy to use. On their website, you’ll see a minimalistic design with a lack of clutter which makes it easy for you to go through and make your decisions wisely. Of course, the simple design translates to its mobile version as well.
You can download Robinhood from the AppStore on IOS or Android. Many people have noted that the mobile app functions more smoothly and looks better than the web version. Thus, if you are using Robinhood on your computer, you may not trade as well than you would if you were using your phone.
If you were to compare the mobile and web versions, you would see that the app has more customizability so you can edit your account to your liking.
Customer support is vital when trading stocks. You may hit bump in the trading process, so adequate services are needed to resolve any issues you might run into.
Thankfully, Robinhood offers excellent customer support. If you have any questions, they are known to offer quick feedback via email. Robinhood’s site has a FAQ section with some common problems along with proper solutions.
Robinhood does not offer a direct communication services in the form of phone or live online chat. The only option to communicate with Robinhood would be through email. This is unfortunate because most of Robinhood’s major competitors offer live chats, especially etoro.
It is important to be careful when working with online broker because they may not be trustworthy and may even mishandle your cash. If an online broker is licensed, you can expect that they will be safe to work with.
Robinhood is safe for you to trade on because they are regulated by top tier financial authorities and they offer large levels of investor protection.
Although this is a major advantage, they are not listed on the stock exchange which might call into question their reputability. Robinhood is not as verified as its counterparts due to the fact that they are not on the stock exchange.
Overall, it is safe to say that trading through Robinhood offers a variety of pros and cons. To summarize:
- It offers investor protection
- It’s regulated by financial authorities
- Friendly and quick email support
- Simple interface
- Can trade stocks, cryptocurrency, and ETFs
- Provides free reports
- Easy to set up
- No commissions or minimum deposits
- It’s not on the stock exchange
- No call center or live chats for customer support
- Mobile version works better than PC counterpart
- Extensive research and reports are only accessible through a paid membership
- Not available in countries like Australia