You have probably heard about the Robinhood app on YouTube and want to know if it’s available in Turkey, 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 Turkey, its expansion plans, and the alternative available in Turkey? 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 defined as a commission-free online broker that offers the possibility of trading stocks, ETFs, options, and cryptocurrencies.
The results are clear: over 18 million users! The competitors of Robinhood have been monitoring this exponential growth closely, and, in October 2019, some major well-established brokers in the US, such as E-Trade, TD Ameritrade, and Charles Schwab, announced in quick succession that they were eradicating trading fees.
Is Robinhood Available in Turkey?
Unfortunately, Robinhood is not yet available in Turkey, nor any other country outside the US. It had planned to open in the UK in 2020, but it was postponed indefinitely due to Covid-19 (more info: here). So their global expansion has taken no step further since then.
But do not lose hope! You will find some alternatives in Turkey 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 major losses for some clients.
Robinhood Turkey Alternative
To help us answer this question, we focused on a low cost, reputable, US-based broker available in Turkey. The online brokers market is so tight that we just came with one solution:
1# Interactive Brokers
Interactive Brokers at a glance
If what you’re looking for is an online broker with a wide range of products from different markets, solid trade execution, and a sophisticated trading platform, then Interactive Brokers might be a good alternative to the Robinhood broker.
Founded in 1978 and publicly listed in NASDAQ since 2007, Interactive Brokers is a global online broker that offers access to dozens of markets worldwide, and not only US-listed assets. Besides the low costs, this is one of their main differentiators.
They also offer an educational area with free resources for financial education.
Which platform should you choose?
Despite resulting only one from our rigorous pre-selection, you might find others on your own.
As such, 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, the range of products it allows you to trade (not all platforms allow you to trade cryptocurrencies or companies listed in Turkey), 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 diligence about the services and opportunities best suited for their risk, returns, and impact strategy.
Hope we helped, and leave your comments below.
Is Webull available in Turkey? Can I use Webull in Turkey?
No, Webull (Robinhood’s biggest competitor in the US) is also not available in Turkey. Due to compliance rules, Webull is not able to do trading besides the USA and Hong Kong.
Does Etrade work in Turkey? Can foreigners use Etrade?
No, Etrade is not available in Turkey either. Only US citizens/Green Card holders can open an account on this platform (some exceptions apply).
What about other US-based investment platforms? Are Acorns or M1 Finance available in Turkey?
No, Acorns and M1 Finance are not available in Turkey either. Only US citizens/Green Card holders are eligible to open an account on these platforms.
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 selling 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.