After testing 11 of the best online brokers over three months, Fidelity (99.36%) is better than Robinhood (62.62%). Fidelity is a value-driven online broker offering $0 trades, industry-leading research, excellent trading tools, an easy-to-use mobile app, and comprehensive retirement services.
For transferring stocks from Robinhood to Fidelity, select Robinhood Securities LLC. On the next screen, you need to provide your 9-digit Robinhood account number. You can find your Robinhood account number in the app and the top right-hand corner of an account statement.
Overview of the best Robinhood alternatives
| Brand | Best for |
|---|---|
| Webull | Those eager to learn |
| TD Ameritrade | Intermediate-level traders |
| Betterement | Hands-off investing |
| Ally Invest | Self-directed investors |
Robinhood isn't a scam. In order to use it do your research outside of the app. It is great for funding an account quickly. I use interactive brokers as my main account and do small trades until they get to a certain amount and cash them out.
Debunking misinformation: Yes, you own the shares you buy through Robinhood. The past few months have shown us the importance of transparency about how our business and our industry works.
Meanwhile, TD Ameritrade nudged out Fidelity in our Best for Beginners, Best Stock Trading Apps, and Best for Options rankings. Fidelity won Investopedia's Best Overall award for 2020 (just edging out Interactive Brokers), while TD Ameritrade took home top honors in Best for Beginners.
Day trading defined
Anytime you use your margin account to purchase and sell the same security on the same business day, it qualifies as a day trade. The same holds true if you execute a short sale and cover your position on the same day.
Robinhood doesn't charge commission fees. Any price difference you may see between the estimated buy/sell price and the execution price is due to market movement. The 3-minute newsletter with fresh takes on the financial news you need to start your day.
The bottom line: Robinhood provides free stock, options, ETF and cryptocurrency trades, and its account minimum is $0, too. Mutual funds and bonds aren't offered, and only taxable investment accounts are available. Still, if you're looking to limit costs or trade crypto, Robinhood is a solid choice.
Yet No Comments