Robinhood Australia | Alternatives for 2022

Stock Market

The volatility from the stock market just has no end in sight (2019 is a long way back! Good times!). Growth stocks are down more than 50% from all-time highs, Cathie Woods of ARKinvest goes from Hero to Zero in just one year, and the headlines in the major financial newspapers are trying to scare you from investing.

Whether you want to find opportunities in an upward or downward market, you must choose the broker to use. Robinhood is nowhere near Australia or any other country in the world for that matter (regulatory aspects still need to be sorted out in the US). 

To make your life easier, we have compiled the following investment platforms that will make you gain the market exposure you are looking for and make sure to check the referral link:

Website Description Products Fees Regulators
eToro With over 24 million users, eToro lets you buy stocks, ETFs,… And offers investors the ability to invest for themselves or copy other people’s trades. Stocks, ETFs, CDFs on Forex, Stocks, Indices, cryptocurrencies and commodities US stocks: $0

EU stocks: $0

ETFs: $0 (in most cases)
Inactivity fee: $10 (after 1 year login inactivity)
Withdrawal fee: $5

Australian Securities and Investments Commission (ASIC) – License nº: 491139

Plus: FCA, CySEC

XTB XTB is an online broker providing access to hundreds of markets worldwide. CFDs on Stocks, ETFs, Forex, Indices, Commodities and Cryptocurrencies S&P 500 CFD: 0.60%

EURUSD: 1.10%
(spreads vary according to market conditions)

Inactivity fee: $10/month (after 1-year login inactivity and if no deposit was made in the previous 90 days)

International Financial Services Commission in Belize. (IFSC) –  License Nº: 000302/185

Plus: FCA, CySEC

Plus500 Plus500 operates an online trading platform for retail investors to trade contracts for difference (CFDs) with competitive spreads and a broad product portfolio. CFDs on Stocks, ETFs, Forex, Indices, Commodities, Cryptocurrencies and Options S&P 500 CFD: 0.70%

EURUSD: 0.80%
(spreads vary according to market conditions)

Inactivity fee: $10/month (after 3 months of login inactivity)

Australian Securities and Investment Commission (ASIC) –  License nº: 417727

Plus: FCA, CySEC

 

Reviews Of Robinhood Alternatives in Australia – Brokers

1. eToro — Best Broker Overall

Etoro

Pros

  • Commission-free stock and ETFs trading
  • Social Trading and Investment Portfolios

A good community for crypto-traders

Cons

  • Withdraw and inactivity fees
  • Limited disclosed financial information
  • Only one currency account (USD)

Launched in 2007, eToro is well-positioned in the Social Trading space as well as in the world of “Do-it-yourself” (DIY) investments by allowing you to invest in Stocks, Forex, ETFs, Commodities, Cryptocurrencies and other markets.

eToro offers a unique social trading experience, making it the best social platform for traders. You can follow, copy, interact with your favorite traders, and create a custom news feed to keep tabs on your preferred assets and their news.

Besides, it offers plenty of educational materials, including a virtual portfolio for training and excellent customer support. If there’s an issue, you can reach eToro’s team via phone, live chat, and support ticket. The customer service is available Monday to Friday, 24 hours per day.

On the downside, the platform only operates in USD, meaning you will be charged currency conversion fees upon deposit and withdrawal if you do not deposit in USD. You must ensure “you are buying the underlying asset” to invest in real stocks. Otherwise, you will be investing in CFDs.

Read an in-depth dive eToro review for 2022!

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2. XTB — Best for CFDs

XTB

Pros

  • Highly customisable trading platform
  • Low Forex Spreads
  • Demo account


Cons

  • Complex trading platform for a beginner
  • High Stock CFD fees
  • Limited fundamental data

XTB is a well-established brokerage company. It was founded in 2002, and it successfully got through the 2007-08 financial crisis. The firm offers online trading services across the globe, with 1500+ financial instruments in CFDs, Forex, and Crypto.

The company presents two great trading platforms (xStation 5 and xStation Mobile), tight spreads, excellent customer support, and a lot of free education on trading. Besides, they are one of the highest-rated brokers regarding their clients’ feedback!

On the “not so great side”, fees charged for stock CFD trading are high. XTB has a limited product portfolio, mainly covering CFDs and FX, so there is no access to real stocks and ETFs.

Check out an in-depth dive XTB review for 2022!

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

3. Plus500 — Best for CFDs on Stocks and Indices

Plus500

Pros

  • Easy-to-use and responsive platform
  • No dealing commissions
  • Demo Account

Cons

  • Very little research and education provided
  • High overnight funding fees
  • Only CFDs

Plus500 was also launched in 2008, and it is considered one of the most reputable CFD brokers worldwide. The company is well known for attracting traders looking for competitive pricing and an easy-to-use platform.

The broker is available to traders in over 50 countries, provides trading services in over 30 languages and offers a wide range of financial products (2000+) such as forex, indices, shares, commodities, options, ETFs, and cryptocurrencies. It is full of user-friendly features, some of which are unique to Plus500, and it is accessible as a mobile app and in a PC version.

Some of the drawbacks include limited research and the lack of deep learning tools. Moreover, Plus 500 does not make the popular MetaTrader 4 (MT4) platform available, which can disadvantage experienced traders.

Check out an in-depth dive Plus 500 review for 2022!

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How Were The Online Brokers Selected?

Safety: Every time we select an online broker, our first requirement is how safe it is. We check if it is registered and regulated by top tier regulators like CySEC or ASIC. If we feel not 100% sure about the regulation entity, we simply do not include it in our lists. The regulation is pretty tight in Australia, so there should be no issues on this front.

Fees: Each penny you spend in commissions equals less money that reaches your pocket. Our analysis includes looking at spreads, currency conversion fees, withdrawal fees and hidden costs that can significantly impact your long term results. The idea is to find brokers with low fees without compromising your overall trading experience.

Investment platforms: The trading platform is also crucial when deciding to invest. That’s where you will set your price alerts, general notifications, analyze charts and give your orders. Investors value other aspects like having a demo account since it allows them to explore the platform’s interface with no compromise.

The range of markets and instruments available: Last but not least, you must match your needs with the brokerage firm. Are you focused on stocks only, or you are the kind of person who likes to try cryptocurrencies as well? We compile platforms that offer a wide range of financial products for most traders!

Which One Should I choose?

That’s the million-dollar question! It is impossible to give you a specific answer since people reading this article will have different goals, investment objectives, knowledge and interests.

Still, defining “base principles” is a significant step you should take. Aside from safety, fees are other crucial points, be aware of what other people are saying about the company. Read the reviews on Trustpilot and in the app stores (apple and google). Usually, you can get a pretty accurate assessment of those platforms.

We know it can be daunting to find a broker. Try to explore the ones we show you above to see if one catches your attention! If not, feel free to ask us for additional alternatives! We will be more than happy to help you!

LEAVE A REPLY

Please enter your comment!
Please enter your name here