The Best Robinhood Alternatives in Australia

Robinhood is one of the most popular trading platforms in the U.S for retail investors. But unfortunately Robinhood isn't available in Australia. So I've put together a list of the best Robinhood alternatives in Australia for 2021.

Why is Robinhood so Popular in the U.S?

So why is Robinhood such a popular way to invest in shares in the U.S? Here are the three reasons that I believe are behind Robinhood's popularity:

  • Fee Free Investing – When you buy and sell shares on Robinhood they don't charge any brokerage fees. Traditionally you would pay anywhere from $5-$19 per trade. This made investing in shares unprofitable for those investing with less money.
  • Fractional Shares – On Robinhood you can buy just a fraction of a share. And because there are no fees, you can invest with very little money.
  • Easy to use Interface – Trading platforms used to be really poorly designed. They weren't easy to use and most didn't offer proper mobile apps. Robinhood changed the game by making their app easy to use. You don't even need a tutorial to starting investing.

So when looking for the best Robinhood alternatives in Australia, I'm going to recommend platforms that offer fee free investing, fractional shares and are easy to use.

The Best Robinhood Alternatives – 2021 List

eToro

eToro is an international trading platform with great support for Australian users. I use eToro to invest in a portfolio of international shares and ETFs (Like Apple, LVMH and ARKK). In my opinion, eToro's feature set makes it the closest Robinhood alternative for Australians.

Trade Stocks on eToro
Past performance does not indicate future performance

Why eToro makes a Good Robinhood Alternative

  • Buy Stocks with Zero Commissions – Just like on Robinhood, you can buy U.S stocks without paying any brokerage commissions. They have also recently fee free investing on U.K and EU stocks as well. Just like on Robinhood you own the underlying asset and you're not trading a CFD (For US, EU and UK Stocks).
  • Fractional Investing – You can invest in any stock with as little as $50. eToro supports fractional shares, just like Robinhood does.
  • Good Interface – eToro has one of the best designed trading platforms. They have been around since 2008 and have consistently improved the design and features.
  • Crypto Support – Robinhood recently added support to buy and sell crypto. You can now trade crypto through eToro as well.

Find out more about eToro here

Stake

Stake launched in Australia a few years ago as a way for Australians to trade U.S stocks without having to pay any brokerage fees. Stake is a very close alternative to Robinhood, although it doesn't offer support for crypto (eToro and Robinhood do). I think it's a great way to invest in U.S shares and I use it to invest in a portfolio of U.S based ETFs (Like $MGK, $VUG, $ARKK).

Stake Referral Code

Why is Stake a Good Robinhood Alternative

  • Commission Free Trading – Just like on eToro, you'll only pay an FX conversion fee. There are no commissions to buy and sell shares and ETFs.
  • Low Trade Minimums – Stake has the lowest trade minimum of any platform on this list. You can invest in shares with as little as $10 at a time. (There is a minimum deposit amount of $50).
  • Fractional Investing – Buy a fraction of a share.
  • Great app design – I find the Stake app to be really easy to use. Sometimes the app can feel a little sluggish compared to some of the others, but I don't see this as a major drawback.
  • Extra Features – I subscribe to Stake Black which gives me access to some extra features including research and the ability to use cash without a settlement period.

P.S – Get a free Stock when you sign up using this Stake referral code.

Superhero

Superhero is a relatively new Australian trading platform that has some of the most competitive fees for Australian shares and they now also support U.S share trading. I use Superhero to invest in a portfolio of Australian growth stocks.

The only downside of Superhero's U.S offering is the $100 minimum trade size. Other platforms have smaller minimums which make investing more accessible to more people.

What Makes Superhero a Good Robinhood Alternative

  • Low Fees – For ASX (Australian) stocks Superhero charges just $5 per trade (the lowest commission in Australia) and for U.S shares, Superhero is commission free.
  • Fractional Investing – Invest in a fraction of a stock.
  • Great App Design – Superhero is my favourite design of all the Australian stock trading apps. I find it really easy to deposit, buy stocks, and check my portfolio.

The Best Robinhood Alternatives for Crypto

On Robinhood you can invest in various cryptos. If you're looking to invest in Bitcoin, Ethereum or other cryptos in Australia then I believe the best platform is Coinspot. It's one of the only crypto exchanges I trust and it has the most competitive trading fees.

If you're looking to trade crypto alongside stocks then I would recommend eToro.

Your Robinhood Questions Answered…

Can Australians use Robinhood?

No. Robinhood is currently not available in Australia.

When will Robinhood be available in Australia?

Robinhood was originally planning to launch in Australia but since chosen to not enter the Australian market. Currently there is no release date.

Can you buy Robinhood Stock in Australia

Yes! Robinhood recently listed as a publicly traded company. You can invest in $HOOD stock through eToro, Stake and Superhero

Does Robinhood have ASX stocks

No. I can't see Robinhood adding ASX stocks. Due to the lack of competition in Australia between exchanges (we only have one major exchange) we don't have competitive fees. This wouldn't work with Robinhood's business model.

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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