You have probably heard about the Robinhood app on YouTube and want to know if it’s available in Estonia, right?
Robinhood is a modern and easy-to-use investment app from the US, which has introduced the concept of commission-free trading in financial products such as stocks and ETFs.
Want to know if the Robinhood app is available in Estonia, its expansion plans, and the alternatives available? We’ve got you covered!
What is Robinhood?
Robinhood was founded in 2013. Since then, it has played a major role in disrupting the brokerage industry by allowing US retail investors to trade with no commissions, alongside its biggest rival, Webull. Robinhood is a commission-free online broker offering the possibility of trading stocks, ETFs, options, and cryptocurrencies.
The results are clear: over 23 million users! It has even been pressing some major well-established brokers in the US, such as E-Trade, TD Ameritrade, and Charles Schwab, to further reduce their fees, despite having already eradicated trading fees. Besides, Robinhood offers an easy-to-use mobile interface, fractional shares (for purchases and dividend reinvestment), and low-cost margin loans.
Is Robinhood Available in Estonia?
Unfortunately, Robinhood is not yet available outside the US. It had planned to open in the UK in 2020, but it was postponed indefinitely.
Most recently, in early 2022, Robinhood has set aggressive goals to “open their crypto platform to customers internationally”. With this in mind, Robinhood has signed an agreement to buy Ziglu, a London-based crypto trading app, to help accelerate their international expansion, both in the UK and across Europe.
But do not lose hope! Meantime, you can still find some Estonia Robinhood alternatives that have proven reliable (and perhaps even more reliable than Robinhood!). The covid-19 stock crash during the first quarter of 2020 showed some vulnerabilities of the Robinhood platform. The app collapsed several times, and investors could not trade during the most volatile markets in history. The company is facing some lawsuits due to these outages.
Besides, Robinhood has faced several security breaches in revealing sensitive information about its clients, and, at one point, it even allowed “infinite leverage” that was shortly corrected afterwards. Still, it did not avoid significant losses for some clients.
Can you use Robinhood from Estonia with a VPN?
Robinhood Alternatives in Estonia
To help us answer this question, we focused on reputable international brokers available in Estonia. Given that, here are our suggestions:
Commission-free stock and ETF trading. You can also copy other traders/investors. Slick, modern, and easy for anyone to use. It is trusted by over 25 million clients worldwide.
Disclaimer: 67% of retail CFD accounts lose money.
Recent commission-free broker with no currency conversion fees. Besides, you have access to “curated investing” (similar to social trading).
Disclaimer: 56.65% of retail CFD accounts lose money.
Founded in 1978, IBKR is one of the world’s most trustworthy brokers. It offers an enormous range of financial products (stocks, ETFs, Options,…), and low currency conversion fees (FX fees).
Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks and ETFs, ideal for novice investors.
One of the leading online brokers in Europe due to its low-cost structure. It offers commission-free stock and ETF trading and a wide product portfolio.
Disclaimer: Investing involves risk of loss.
A 0% commission platform that provides low overnight fees, tight spreads, and no currency conversion fees! With access to over 6,100 markets, It offers stocks and ETFs plus CFD trading in indices, shares, cryptos, commodities and Forex. Check out our full Capital.com review.
Disclaimer: 83.45% of retail CFD accounts lose money.
Free stock trading up to €100.000 monthly volumes in some countries (Portugal, Italy, Poland, Slovakia, Czech Republic, France, Spain, Romania and Germany). It also allows you to invest in CFDs, cryptocurrencies, and forex with low fees.
Disclaimer: 79% of retail CFD accounts lose money.
Founded in 2015, NAGA is a German fintech adopted by 1M+ investors and allows you to trade 1,000+ financial instruments worldwide, including real stocks, ETFs, Cryptocurrencies, Futures, Forex, and CFDs of Indices and stocks. It also offers social trading, a multi-currency account and a demo account.
eToro at a glance
Founded in 2006, eToro is a well-known worldwide fintech startup and the leader in the social trading field (follow other people’s trades), with over 25 million users worldwide. You can also invest in other products such as CFDs, ETFs, stocks, commodities, Forex, and cryptocurrencies through their platform, which is intuitive and simple to use, making it a good choice for beginners. Plus, they have started offering commission-free stock and ETFs trading (not all ETFs are commission-free).
Opening an account and depositing is easy, and you can even try it out with virtual money. On the downside, the only currency accepted is the USD, so you’ll pay currency conversion costs upon deposit and withdrawal if you another currency, and spreads can be high for some products, like cryptocurrencies. Full eToro review available here.
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.
# Interactive Brokers
Interactive Brokers at a glance
Founded in 1978 and publicly listed in NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker which surpassed major financial crises, showing resilience and a rigorous risk management process.
Interactive Brokers offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from +150 markets, solid trade execution (IB SmartRouting), and a set of technical and fundamental tools to help you in your investment decisions.
Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. That´s why we mainly endorse it to more advanced traders. However, IBKR recently launched the IBKR GlobalTrader, a modern mobile trading app to trade Stocks and ETFs, ideal for novice investors. Besides, the customer service gives crystal clear answers to your doubts, so there is no need to go back and forth.
On the downside, Interactive Brokers’ fee structure is quite complex, the registration process is lengthy (but fully online), and the broker doesn’t offer commission-free trading. However, when considering FX fees, narrower spreads, and the stock loan program, Interactive Brokers’ clients still get significant savings compared to most brokers.
Want to know more about Interactive Brokers? Check our Interactive Brokers Review.
Nextmarkets at a glance
Founded in 2014, Nextmarkets is an online broker well-tailored for those with a basic understanding of the financial markets. It has a very intuitive and hassle-free mobile app. You can invest in financial products such as shares, ETFs, and CFDs on shares, ETFs, indices, forex, bonds, cryptocurrencies, and commodities.
In addition to the “Do-it-yourself” segment, Nextmarkets sets itself apart from its competitors because it offers “curated investing”. You have probably heard about social trading, where you follow other peoples’ trades. Nextmarkets wants to take the idea of social trading further by allowing you to benefit from the experience of proven experts (called “coaches”) and stock market professionals.
The fee structure is also unique: you only pay spreads. So, there are no fees on deposit, withdrawal, inactivity, currency conversion fees, and even no overnight fees in CFDs (something not usual in most brokers). On the downside, the web platform is quite “buggy”, you have no educational materials, and there is a €1 commission for orders below €250.
Nextmarkets Trading Ltd, the legal name of Nextmarkets, is registered in Malta and, consequently, authorized and regulated by the Malta Financial Services Authority (MFSA). You are protected up to a maximum of €20,000 on your money and assets.
If you want to learn more, check our Nextmarkets Review.
Capital.com at a glance
Founded in 2016, Capital.com is a fintech group of companies committed to building the world’s best trading experience. They utilise AI-enabled technology and integrations with the likes of Trading view to offer a unique trading experience.
With 500,000+ active users, Capital.com is a commission-free broker in stocks, ETFs and CFDs in indices, shares, cryptos, commodities and Forex. The only charges you will notice are spreads (the difference between the buy and sell prices) and overnight fees (only if you have leveraged positions).
The trading platforms on desktop and mobile are highly customised to your individual trading preferences. You have access to news feeds, extended trading hours and a wide range of orders types. Investors also have lots of educational content to explore, the minimum deposit is only €20 (except for a wire transfer: €250), and the customer service is available 24/7 through different channels (live chat, e-mail, WhatsApp, Facebook Messenger,…).
Besides, Capital.com is supervised by top tier regulators such as FCA, CySEC, ASIC and NBRB. You are under Investment Protection Schemes, Negative Balance Protection, segregated funds, two-factor authentification and data protection.
On the downside, stock and ETF trading is not available in all countries, the platform does not offer Options or Bonds, and it may be overwhelming for beginners.
Want to know more about Capital.com? Check our Capital.com review.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.45% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
XTB at a glance
Founded in 2002, XTB presents itself as a market player with extensive worldwide experience, regulated by the Financial Conduct Authority (FCA) and listed on the Warsaw Stock Exchange. The platform offers 0% commissions on stocks. However, its software is more oriented to CFDs and forex trading with competitive costs.
XTB also offers other financial products such as commodities and cryptocurrencies. XTB charges high commissions on CFDs of cryptocurrencies but low costs for Forex. Besides, you will face an inactivity fee of €10/month after one year of non-trading and if you have not made any deposit in the last 90 days. Opening an account and transferring money is a quick and hassle-free process (demo account available).
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investors accounts lose money when trading CFDs with this broker. It is important to understand how CFDs work and the risks involved in trading, like losing all the invested capital.
NAGA at a glance
NAGA is a German fintech company, a subsidiary of NAGA Group AG (listed in the Frankfurt Stock Exchange). It gives you investment access through two subsidiaries: “NAGA Markets Europe Ltd” and “NAGA Global Ltd”.
Besides, the typical do-it-yourself brokerage services, NAGA presents the “Autocopy” which enables you to automatically follow other people’s trades, and even earn up to 0.30$ by having other people follow your trades!
Through their various platforms (MT4, MT5, web version, and mobiles apps), you have access to stocks, ETFs, indices, Forex, CFDs on stocks, cryptocurrencies, commodities, and futures. Besides, its academy produces useful insights on the NAGA platform and trading in general. From time to time, you may also watch webinars mainly on technical analysis.
NAGA Global is registered in St. Vincent and the Grenadines, which still gives you negative investment protection and segregated client funds but no investor compensation fund.
Want to know more about NAGA? Check our NAGA Review.
DEGIRO at a glance
Founded in 2013, Degiro is a low-cost brokerage firm that has become very popular due to its low rates! With over 2 million users, the innovative platform has become widely known for its “do-it-yourself” philosophy in the sense that you have everything at your disposal to start investing on your own. It offers a wide range of financial assets to trade, including stocks, ETFs, bonds, options, futures contracts, warrants, investment funds, and some leveraged products (not quite the same as CFDs. More info here).
For instance, you can trade some stocks and ETFs for free (a €0.50 flat handling fee – external costs – still applies). You also have a list of 200 ETFs where you may trade once a month completely free with no minimum amount required. The web trading platform is basic, but it is efficient and straightforward to use. In a matter of minutes, you get used to it. The same applies to its mobile app. On the downside, there is an absence of any significant fundamental research, a €2.50 connectivity fee applies and pricing alerts are missing.
Regarding security, Degiro is the Dutch branch of flatexDEGIRO Bank AG (a German regulated bank). In the unlikely event that the segregated assets cannot be returned to clients, Degiro falls under the German Investor Compensation Scheme, which compensates any losses from non-returned assets up to 90% (with a maximum of €20,000), so do bear this in mind if you are planning to invest much larger volumes. Furthermore, any money deposited on a DEGIRO Cash Account with flatexDEGIRO Bank AG will be guaranteed up to an amount of €100,000 under the German Deposit Guarantee Scheme.
Still any doubts? Go through our Degiro Review!
Which platform should you choose?
Some factors you should know when choosing an online broker are the fees charged if it is regulated by top-tier institutions such as the SEC in the US or the FCA in the UK, and the range of products it allows you to trade, among others.
The best online broker in your specific case will depend on your profile, preference, and objectives. Explore the websites above and decide for yourself!
A reminder that the above should not be seen as investment advice and should be considered information only. Investors should do their own research and due diligence about the services and opportunities best suited for their risk, returns, and impact strategy.
Hope we helped, and leave your comments below.
Other FAQs about Robinhood
How exactly does Robinhood make money?
The online broker earns money from interest earned on customers’ cash balances (money in your account not invested), by selling order information to third parties (high-frequency traders, for instance), and margin lending.
Regarding the selling of orders, the US Securities and Exchange Commission (SEC) is still investigating Robinhood for not fully disclosing its practice of selling clients’ orders to high-speed trading firms.
Until October 2018, Robinhood would not clearly state that it was receiving payments for order flows. By law, any financial company must reveal all the material facts an investor would want to know before making any investment decision.