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 best 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.
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 a good Robinhood Turkey alternative that has proven reliable (more reliable than Robinhood!). The covid-19 stock crash during the first quarter of 2020 showed some vulnerabilities in 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.
Best Robinhood Alternative in Turkey
To help us answer this question, we focused on low-cost, reputable online broker available in Turkey:
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, Options and ETFs, ideal for novice investors.
1# 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. 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.
Interactive Brokers launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks, Options and ETFs, ideal for beginner investors. Some of the features of IBKR GlobalTrader include automatic currency conversions, fractional shares, demo account, and more.
Want to know more about Interactive Brokers? Check our Interactive Brokers Review.
Should you go for Interactive Brokers?
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. Still, Interactive Brokers seems to meet most criteria used for this article.
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 United States, Hong Kong, China, Singapore, Japan, and Australia.
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.