Robinhood doesn't accept clients in Australia
Unfortunately, Robinhood is not available to local traders; as of April 2023, they only open trading accounts to Americans residing in the US.
However, if you need a discount broker, don't feel bad. Robinhood claims they do not charge commissions for stock, options, or cryptocurrency trading. Yet, they're no longer the only broker with a 0% commission on stock trading.
Robinhood's customer base is youngsters new to investing, drawn to the app by advertising "free" and "democratization." Robinhood offers low research capabilities and experiences outages during market surges.
In the following section, we present an alternative to Robinhood, which is more robust and has significantly more competitive features.
eToro: Your alternative to Robinhood
eToro (etoro.com) is a global multi-asset fintech group operating proprietary technology-based trading platforms.
eToro offers customers a range of trading products, including Contracts for Difference ('CFDs', a.k.a, leveraged financial derivatives) and Share dealing. eToro is considered an excellent alternative to Robinhood for several reasons:
Wide range of assets: eToro offers a broader range of assets to trade, including stocks, cryptocurrencies, commodities, and more, giving investors more options to diversify their portfolios.
Social trading: eToro allows traders to connect with and follow other traders, see their portfolios, and even copy their trades, which can be helpful for inexperienced traders.
Regulation: eToro is regulated by top-tier financial authorities such as the FCA and CySEC, providing a higher level of security for investors than Robinhood.
User-friendly platform: eToro has a user-friendly platform with a simple and intuitive design, making it easy for users to navigate and execute trades.
Availability in more countries: eToro is available in over 140 countries, whereas Robinhood is currently only available in a limited number of countries.
Some key facts about this financial services provider:
1250+ instruments available, including FX instruments, Cryptocurrencies, Stocks, Commodities
Desktop, tablet, mobile and Web-based trading
Competitive spread and leverage offering
Client funds are held in segregated accounts for increased protection
Regulated in Europe, Australia, UK and UAE
Trading platforms in +20 languages
It is indeed a great alternative to Robinhood.
Who are Robinhood's clients?
The Robinhood trading app best suits rookies who want to trade small quantities, including fractional shares and cryptos.
Robinhood's overall simplicity makes the app and website very easy to use, and to charge zero commissions appeals to extremely cost-conscious investors who trade ultra-low quantities. That said, their product offering is flawed in research and analysis, and there are serious questions about the quality of the trade executions.
Robinhood is one of the most well-known US discount brokers. It gained traction in 2020 during the GameStop Stock saga.
While checking out a trading blog, we found that a trader from Canberra wanted to open an account with Robinhood, but he couldn't succeed. So we decided to shed light on this. Is Robinhood available to Australian traders?