Over the past few years, several companies have made huge progress towards removing barriers involved with investing in the stock market. Robinhood, Stockpile, and Webull are online stock brokers that are making it easier than ever to start investing.
In this article, we’ll look at the details of each and see how they stack up against each other.
Although all three of these apps make it easier to invest in the stock market, they go about it in different ways. There are definitely some similarities, but there are also key differences.
Get Free Stock
Right now both Robinhood and Webull are offering free stock when you sign up and open a free account. To get the free stock you need to use the referral links below:
See more ways to get free stock here: 10 Legit Ways to Get Free Stocks
Comparison of Investing Apps Robinhood, Stockpile, and Webull
Let’s take a look at each app, one at a time. This chart gives a quick overview of how the apps compare, and there are plenty of details below it.
|Stock and ETF trade fees||free||$0.99||free|
|Buy fractional shares||yes||yes||no|
|Gift stocks to others||no||yes||no|
|Advanced tools and features||no||no||yes|
|Sign up and get free stock from Robinhood||Sign up for Stockpile||Sign up and get free stock from Webull|
→ Related reading: Living Off Dividends – How to Use Passive Income to Cover Your Expenses
Robinhood was started for the purpose of removing common barriers to investing, like fees and minimums. It has grown very quickly to become an extremely popular investing app and it’s offer of commission-free trades has had a ripple effect on the industry. The target market of Robinhood is millennials, but anyone who wants to make trading easy will enjoy it and see its value.
Users can manage their Robinhood accounts on the desktop website or through the mobile app (iOS or Android). Making trades on your phone or computer is quick and easy. The interface is well-designed and relatively easy to use on both desktop and mobile.
Robinhood has used free trading (no fees of any kind) to stand out and attract new users. You can trade stocks, ETFs, options, and cryptocurrencies with no fees. Free trading is what helped Robinhood to become a household name, but they have continued to evolve and offer more to users. The free trades are especially important when you consider that many trades made through Robinhood are for small amounts. Even a $0.99 fee can be significant if the value of the stock being bought or sold is low.
In addition to free trades, there are also no minimum investments required. The combination of no fees and no minimums makes investing in stocks a realistic option for anyone.
Because Robinhood takes the approach of simplifying the investing process, that does mean that you’ll make some sacrifices in the form of some advanced tools and features that are not included. Robinhood’s strength lies in its simplicity, but if you want more advanced tools, including research tools, Robinhood may not be your best option.
From the Robinhood dashboard, on both the desktop version and mobile app, you can view historical information on the stock, links to relevant news articles, analyst ratings, and some other basic info.
Robinhood also offers cash management and you can earn a small amount of interest for your uninvested cash.
One of the latest developments for Robinhood has been the ability to buy fractional shares of stock. That means that you don’t need to have $500 if you want to invest in a stock that has a share price of $500. Instead, you can buy a fractional share for as little as $1. For newer investors, this may be a very important feature.
Is Robinhood Safe?
Your personal data is protected by 256-bit encryption. Robinhood is a member of the Financial Industry Regulatory Authority (FINRA) and the Security Investor Protection Corporation (SIPC), which gives some security to investors by ensuring that Robinhood is meeting regulations. Of course, investing in the stock market always comes with the risk of losing your investment
How Does Robinhood Make Money?
The free trades and no fees of any kind are great, but it might leave you wondering how Robinhood makes money. Robinhood Gold is a fee-based service that allows you to borrow money to invest, so the company makes money on those fees.
Strengths of Robinhood:
- Free trades of stocks, ETFs, options, and cryptocurrencies
- Option to buy fractional shares
- No fees for opening or maintaining an account
- Extremely easy to use
- Great introduction to investing in the stock market
Weaknesses of Robinhood:
- No retirement accounts are available
- No joint accounts are available
- Limited tools and features
Stockpile has an interesting story about how and why the company was founded. Founder and CEO Avi Lele wanted to buy stocks as gifts for his nieces and nephews. After researching the options, he gave up and bought them toys instead. Originally, Stockpile was started for the purpose of gifting stocks to children. That functionality is still offered, but Stockpile has expanded as well.
Anyone can buy a Stockpile gift card and give the gift of stocks. The recipient can choose the stock that they want to buy, and either buy a full share or a fr