Robinhood, a popular US trading platform, is a US-based broker that offers an intuitive trading and investing experience.
The platform, founded in 2013, focuses primarily on stocks and ETFs.
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 of the best online trading platforms.
Is Robinhood Available in Australia?
No, Robinhood is not available in Australia. The app has restricted access in certain countries, including Australia and many other countries.
This is unfortunate since a large number of traders are interested in trading with this online discount brokerage.
Robinhood is only available in the United States. However there are many good alternatives:
|AU License||ASIC #364264||ASIC #417727||ASIC #364264|
|AUD Forex Pairs|
|Info||Best for Social Trading||Lowest Minimum Deposit||Best For Options Trading|
For Australian investors looking to utilize a similar service, there are alternative options available.
In addition to the ones above, Webull is another such alternative. It is a digital broker that allows Australian investors to trade in US-listed stocks.
Webull, like Robinhood, offers free stocks to new users who open an account and fund their account. It also allows trading in options and ETFs.
However, potential users should keep in mind that even with a low currency conversion fee, trading on a US trading platform comes with its costs.
Each trade requires a currency conversion, and these fees can add up over time.
Furthermore, when choosing an online trading platform, investors should also consider the platform’s security measures, such as two-factor authentication, and whether it offers resources for investment advice to aid in their investment decisions.
This brokerage has garnered a significant following due to its user-friendly platform and the allure of no brokerage fees. However, it’s not without its pitfalls.
For instance, its business model of earning from order flows and other backend operations has been a subject of contention. Moreover, the lack of accessibility for non-US residents limits its global growth potential.
Lastly, while its interface is easy to navigate, it may not be suitable for more complex investment decisions or advanced wealth management.
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.
- 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
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.
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.
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 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 chat, for example eToro (here is my eToro review).
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.
It’s also worth considering the ‘target market determination’ for each platform. This is a provision under Australian law that requires product issuers to define who their product is suitable for.
Many investment platforms offer this information, and it’s a useful tool for investors when deciding which platform to use.
Before settling on a platform, always remember to read our review and other trusted sources, check the FAQs, and ensure you’re aware of all fees involved.
Investors could potentially save a significant amount by considering these factors before diving into the world of online trading.
This comprehensive approach to choosing a platform will not only help you avoid unpleasant surprises but also enable you to make the most out of your investment journey.
Personal Experience with Robinhood
As someone who has used Robinhood for several years, I can attest to the benefits and drawbacks of the platform. One of the most significant advantages is the absence of commissions and minimum deposits, which makes it accessible to a wider range of investors. In my experience, this has saved me a considerable amount of money that I would have otherwise spent on fees.
However, I have also noticed that the free reports provided by Robinhood are not as thorough as those offered by other online brokers. This has led me to consider upgrading to the Robinhood Gold membership, which provides access to more extensive research and reports, as well as other premium features.
In terms of customer support, I have found that Robinhood’s email service is efficient and helpful, but the lack of a direct communication option, such as live chat or phone support, can be frustrating at times.
In terms of numbers, according to a recent survey conducted by Robinhood, 50% of their users are millennials, and 35% of their users have never invested before using their platform. This shows the growing popularity of online trading platforms, especially among younger generations who are seeking more accessible and affordable ways to invest their money.
Additionally, Robinhood reported a 400% increase in new account openings in the past years.
My personal experience with Robinhood has been positive, and I believe it offers a great option for investors who are looking for a user-friendly and cost-effective platform.
As of 2023, Robinhood, the renowned trading app, is not available to Australian investors, despite its considerable appeal.
Known as a low-cost brokerage, Robinhood has revolutionized stock trading by offering a commission-free investing platform, allowing users to trade fractional shares of stocks listed on exchanges such as NASDAQ.
This innovative approach, coupled with an intuitive desktop interface, has made it a popular choice for investors worldwide.
While Robinhood’s absence in Australia might disappoint some, it’s crucial to remember that there are local alternatives which offer similar features.
The landscape of investing is constantly evolving, with the potential for Robinhood’s entry into the Australian market remaining a possibility.
Until then, Australian investors will need to leverage other platforms for their stock trading needs.