If you’ve been following cryptocurrency and stock market news recently, you’ve probably heard about Robinhood, a relatively new yet outstanding trading app for US investors. It is one of the greatest investment applications in the United States because of its unique features.
It may appear unjust that although US investors have access to such a great tool, it is simply inaccessible in Canada. That may sound awful, but Robinhood isn’t the only trading platform out there.
Other services are virtually as good as Robinhood if you’re prepared to look into them. This post will describe what makes Robinhood unique, as well as some of the top alternatives that provide similar services.
What Is the Meaning of Robinhood?
Robinhood is a free investment software that promises to make investing accessible to novice investors. Despite having a largely US-based user base, it is known for charging no fees for most services, giving it a user base of 21 million.
Robinhood is a popular app among cryptocurrency traders since it allows them to trade without paying any fees. Furthermore, you can create a free account at any moment and are not obliged to have any funds in your account.
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While the majority of Robinhood’s features are free, it’s worth noting that a Robinhood Gold subscription is available. If you’re new to trading and may benefit from some reports to help you learn how to trade better, this membership plan is for you.
Is there a Robinhood app for Canada?
If Robinhood appears to be a fantastic app, you’re right. There was no way it could gain 21 million members in eight years if its service wasn’t appealing.
However, if you’ve ever tried to use this service from Canada, you know what occurs. You just receive a notification stating that you are now unable to conduct deals from your current location. While the website is available, accessing the app and completing deals from Canada is difficult.
Robinhood is currently available in Canada, unless you’re willing to take risks. If you really like the platform and are prepared to take a chance to utilize it, you can sign up for a VPN. Prepare, though, to lose all of your money the first time you log in without a VPN by accident.
While using a VPN is a viable option for accessing this site from Canada, it is not required. There are other platforms, similar to Robinhood, that allow you to access no-fee transactions from Canada.
Alternatives to Robinhood for Canadians
While Robinhood has frequently stated that the service will be brought to Canada, it has been long enough to assume that they do not intend to do so. You also don’t have to wait for them to do so because there are free and low-cost alternatives to Robinhood for Canadians.
While some of these alternatives may not offer all Robinhood does, they are the closest offerings to Robinhood today due to regulatory monitoring. Here are some of the top Robinhood options for Canadians you should try right now.
1. Tradesimple Wealthsimple Wealthsimple Wealthsimple Wealths
While its name may not be as distinctive as Robinhood’s, it is unquestionably the most similar game to Robinhood that is also available in Canada. This service figured out a means to get around Canada’s regulatory restrictions and offer commission-free trading.
Wealthsimple Trade, like Robinhood, has a $0 minimum account balance to let you get started trading with anything you wish. It is a fascinating investment software for both American and Canadian investors because it allows you to trade in either USD or CAD.
If you’re switching from Robinhood to Wealthsimple Trade, you’ll find that it’s lacking a lot of features. If you routinely use the margin trading and fractional share options, you may wish to return to Robinhood, or at the very least, look for an alternative.
2. Interactive Brokers is number two.
Interactive Brokers is objectively superior to Robinhood, but it caters to more experienced investors, which runs counter to Robinhood’s core concept. Although this service does not provide commission-free trades, it is worthwhile if trading is your principal occupation.
Interactive Brokers is currently the only trading facility that allows Canadians to trade fractional shares. The fact that Interactive Brokers provides unique services to traders all around the world has won it the distinction of world’s best online broker time and time again.
Interactive Brokers also has the lowest commission rates in the business and allows you to open a $0 account. This service may be of interest to you if you desire an investing service that allows you to access your account from 135 different countries across the world.
On the negative side, this platform is not user-friendly for newcomers. Additionally, as long as your account is under $100,000, using the service costs $10 each month.
With the upcoming crypto explosion in 2020, more people are turning to Robinhood to trade cryptocurrency. If that’s the main reason you’re looking for an alternative, Newton might be worth a look.
Newton is a considerably superior crypto trading program to Robinhood, and it’s even better because it’s available in Canada. It offers over 25 cryptocurrencies that can be traded in all provinces of Canada. One disadvantage of Newton is that it only allows you to trade cryptocurrency.
Unlike most other Canadian crypto brokers, Newton does not charge a fee to deposit or withdraw cryptocurrency. Deposits are likewise lightning quick, and it has the lowest transaction fees of any competitive service.
However, Newton’s servers may use an upgrade, as trying to access your account during a spike will almost certainly result in outage. Most investors are put off by the fact that they can’t trade equities or bonds.
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