Robinhood (or Robinhood Markets) is a financial services company in the US. The company provides its users with the ability to trade stocks and exchange-traded funds online. Most of its transactions are commission-free, allowing users to purchase and sell stocks at a low cost. Robinhood’s unique business model makes the company one of the best options for online trading.
Robinhood, founded in 2013, revolutionized the market for online trading. The company currently offers various services, primarily including stockbroker and electronic trading platforms. Apart from stocks and exchange-traded funds, users can also trade in other securities and cryptocurrencies. On top of that, it also provides banking services to its users.
Being one of the top names in the industry with over 13 million users, Robinhood also attracts competition. Many competitors provide similar services to users. These competitors are a great alternative to users seeking other options. Some of the top names that Robinhood currently competes with include the following.
WeBull is a Chinese electronic trading platform. It provides similar services as Robinhood through its mobile app and desktop computer. Like Robinhood, WeBull also allows users to trade online commission-free. Its primary services include stocks, exchange-traded funds, margins, cryptocurrencies, and options. Although primarily Chinese, the company headquarters are in New York, USA.
Established in 2017, WeBull has grown its users base to over 11 million registered users. In October 2020, the company reported 750,000 daily active users. There are several areas where WeBull excels and poses a serious threat to Robinhood’s business model. The company also started talks of an initial public offering, with experts valuing it at over $400 million.
Coinbase is another name in the industry that is competing with Robinhood. The company primarily operates a cryptocurrency exchange platform, allowing users to trade in various currencies. Its products include Bitcoin, Ethereum, Litecoin, etc. Coinbase has a market cap of about $65 billion and operates in more than 100 countries.
Coinbase is one of the top names in the cryptocurrency market. As of March 2021, the company was the largest cryptocurrency exchange in the US in terms of trading volume. The company has over 68 million users. Its userbase has grown substantially from when the company was established in 2012. In the cryptocurrency market, Coinbase is Robinhood’s biggest competitor.
3. M1 Finance
M1 Finance is an American financial services company. The company began its operations in 2015 and provides users with brokerage accounts, digital checking accounts, and lines of credit. Its primary service includes a robo-advisory investment platform, making use of AI to advise users. The company allows users to trade in financial assets, including stocks and exchange-traded funds.
M1 Finance provides unique services to over 500,000 clients and getting more popular among users. It is one of the top choices among online investors for its automated investing and customization features. Furthermore, the company is one of Robinhood’s primary competitors in the electronic trading industry. Although M1 Finance doesn’t provide commission-free trading, it has various other features that users prefer.
eToro is an Israeli social trading and multi-asset brokerage company. However, it provides services in many countries, including registered offices in the US, the UK, Australia, and Cyprus. The company provides users with financial and copy trading services. eToro is one of the older names in the market, being established in 2007. The company was also one of the first platforms to provide mobile trading services.
eToro, like Robinhood, provides commission-free trading. The company has accumulated over 20 million users in over 100 countries throughout the years. Its primary competitive market is the US, with millions of users. eToro also provides crypto trading features to its users. eToro is one of Robinhood’s top competitors in all the markets.
TradeStation Group is a fairly old competitor to Robinhood. The company, established in 1982, started as a business that provided tools to common users for customizable trading. Ever since then, the company has gone through many ups and downs. However, it is currently one of the top names in the trading market and a top competitor to Robinhood’s business.
TradeStation boasts one of the most well-known and awarded platforms for trading. The company provides users with the feature to trade securities, mutual funds, bonds, futures, and cryptocurrencies. TradeStation doesn’t currently disclose its user count. However, it is one of the most experienced competitors in the market.
Public.com is a social investing network company. The company allows its users the ability to trade in public stocks and exchange-traded funds. Currently headquartered in New York, US, Public.com provides similar services to Robinhood. The company is one of the newer names in the market, established in 2018. Initially, the company started as Matador. Later, however, it got renamed Public.com.
Public.com allows users to trade online with smaller budgets. It is an ideal platform for beginners to get started and learn the basics. The company currently doesn’t offer crypto trading services. However, it will add that feature in the future. Public.com has over 1 million users, which is rapidly growing.
7. Firstrade Securities
Another one of the oldest competitors in the market is Firstrade Securities. It is a stock brokerage firm and broker-dealer, with headquarters in New York, US. Although established in 1985, Firstrade has adopted its business model to cater to online users. The firm offers an electronic trading platform that allows users to trade financial assets. These include stocks, mutual funds, exchange-traded funds, bonds, and options.
Although not as big as some other names on the list, Firstrade still poses a threat to other businesses. Its vast amount of experience in the field is one of its primary competitive factors. On top of that, the company also allows users an easy-to-use platform. Like Robinhood, Firstrade also helps users to trade online commission-free.
8. TD Ameritrade
TD Ameritrade is the oldest competitor to Robinhood on the list. The company, founded in 1971 as Ameritrade, is a broker that provides an electronic trading platform. Its users can trade in financial assets, including stocks, futures, exchange-traded funds, options, forex, cryptocurrencies, mutual funds, margin, cash management services and fixed-income investments.
TD Ameritrade has gone through many business model changes throughout the years. It currently has over 11 million clients and is managing more than $1 trillion in assets. TD Ameritrade is one of the top names in the market. Its primary competitive advantages include its vast expertise, experience, easy-to-use platform, features, etc.
Tradier does not offer similar services as other names on this list. However, these services are in the same field. Tradier primarily focuses on providing developers, trading platform providers, and investors with an innovative trading platform. The company allows these users to use a rich set of real-time APIs to customize their trading through automated systems.
Founded in 2013, Tradier provides unique services. It doesn’t focus on the same market as Robinhood. However, it still poses a threat to Robinhood’s business model. With the rising focus on cloud computing, Tradier’s cloud-based financial services can significantly outperform the market in the future.
E-Trade (or E*Trade) is an electronic trading platform. The company offers users online trades in stocks, futures, exchange-traded funds, fixed income investments, options, and mutual funds. As of now, it does not have crypto trading features. Although not a commission-free trading platform, E-Trade is still one of Robinhood’s competitors in the market.
E-Trade is another experienced name on the list, founded in 1982. The company has gone through several changes to reach its current position. E-Trade has over 7 million users. In October 2020, the company got acquired by Morgan Stanley, an American multinational investment and financial services company.
Robinhood is an online trading services company. The company, established in 2013, has accumulated over 13 million users throughout the years. Due to its popularity, Robinhood attracts severe competition. Some of its competitors include WeBull, Coinbase, M1 Finance, eToro, TradeStation, Public.com, Firstrade Securities, TD Ameritrade, Tadier and E-Trade.