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Can you trade Forex on Robinhood? Alternatives in 2024

Ricardo Fernandes| Updated January 23rd, 2024

Robinhood is a modern and user-friendly investment app from the US, founded in 2013. It has introduced the concept of commission-free trading in financial products such as stocks and ETFs, competing with its major rivals like Webull, E*TRADE, and TD Ameritrade.

Its 10+ million monthly active users can choose between investing in stocks, options, ETFs, and cryptocurrencies, all without trading fees. One drawback of Robinhood is the limited availability of investment options compared to its competitors, E*TRADE and TD Ameritrade.

Want to know if you can trade Forex on Robinhood? Wondering about alternative investment platforms to invest in Forex? We’ve got you covered!

Can you trade Forex on Robinhood?

Unfortunately, you are not able to trade Forex on Robinhood! As of this writing, Robinhood doesn’t offer Forex trading.

robinhood app

Source: Robinhood

When contacted, the support team was unable to provide relevant information regarding why Robinhood does not offer Forex. However, there is a potential for Robinhood to expand its offerings further, driven by ongoing market demand and the necessity to adapt to changing consumer needs.

Robinhood has a restricted product range, featuring only stocks, ETFs, options, and cryptocurrencies, primarily focusing on US markets.

Investment Option Availability
Forex
Crypto
Stocks
ETFs
Options
Funds
Bonds
Futures
CFDs

Best Robinhood alternatives for investing in Forex

Can you trade Forex on Robinhood? Alternatives in 2024 1

#1 Best for a wide range of currency pairs and advanced tools

Broad range of currency pairs
Tight forex spreads
+20 base currencies
View BrokerCan you trade Forex on Robinhood? Alternatives in 2024 2Read review
Interactive Brokers summary
Interactive Brokers is one of the biggest brokers that lets you trade more than 100 currency pairs. It is regulated by several international financial authorities. Their trading platform, the Trader Workstation (TWS), offers excellent customisation, advanced technical indicators, and fundamental trading tools, which are ideal for professional traders and easy to use by beginners as well.
Supported countriesWorldwide (exceptions apply)Fractional sharesYes
RegulatorsFINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS and MNB.Interest on uninvested cashEUR: 3.467%; USD: 4.83%; GBP: 4.75% (as of January 2024)
Products and MarketsStocks, ETFs, Options, Futures, Forex, Commodities, Bonds and Funds.
Can you trade Forex on Robinhood? Alternatives in 2024 3

#2 Best for U.S. investors

Tight forex spreads
Broad selection of trading tools
High maximum leverage (up to 1:50)
View BrokerCan you trade Forex on Robinhood? Alternatives in 2024 2
TD Ameritrade summary
TD Ameritrade is an established online broker with a strong presence in the United States, offering more than 80 currency pairs for Forex trading. One of the key advantages of TD Ameritrade is its robust trading platform, thinkorswim. This platform offers advanced charting capabilities and customisable layouts.
Supported countriesUS, India, China, among othersFractional sharesNo
RegulatorsSEC and FINRAInterest on uninvested cash0.35%
Products and MarketsStocks, ETFs, Options, Mutual Funds, Futures, Forex, Cryptocurrencies, Bonds and access to IPOs
Can you trade Forex on Robinhood? Alternatives in 2024 5

#3 Best for educational and research materials

Competitive spreads
Tool ProRealTime
+45 years of experience
View BrokerCan you trade Forex on Robinhood? Alternatives in 2024 2
IG summary
IG is known for its extensive 17,000+ financial products available on its platform and its comprehensive research and education materials. They have over 80 currency pairs available, and spreads start from 0.6 pips. It is ideal for beginners and professionals looking to trade Forex while having access to other asset classes on the same platform.
Supported countriesWorldwide (exceptions apply)Fractional sharesNot available
RegulatorsFCA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSAInterest on uninvested cash0%
Products and MarketsCFDs on stocks, indices, forex, commodities and cryptocurrencies

75% of retail CFD accounts lose money.

OANDA logo

#4 Best for Forex investors valuing access to MetaTrader 5

Advanced trading and analysis tools
Tight spreads
+25 years of experience
View BrokerCan you trade Forex on Robinhood? Alternatives in 2024 2
OANDA summary
OANDA is a reputable online forex broker known for its advanced trading technology and robust platform. It offers more than 75 currency pairs for Forex trading.
Their trading platform is designed to cater to both novice and experienced traders, providing a seamless trading experience.
Supported countriesWorldwideFractional sharesYes
RegulatorsFCA, PFSA, ASICInterest on uninvested cash0%
Products and MarketsStocks, Forex and CFDs on Stocks, ETFs, Indices, Commodities and Crypto

Brokers’ comparison table

Broker Minimum Deposit Products Available Number of currency pairs Spreads starting at

(pips)*

Regulators
Interactive Brokers $0 Forex, Stocks, ETFs, bonds, mutual funds, options, futures, leverage products, crypto, and commodities 100+ 0.1 (subject to commission) FINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, MNB
TD Ameritrade $50 (electronic transfers); no account minimum Forex, Stocks, ETFs, mutual funds, futures, options, fixed income (including bonds) 80+ $0, but spreads starting 1.1 pip apply SEC, FINRA, CFTC
IG  $0 (only for bank transfers) Forex 80+ 0.6 ASIC, FCA, NFA, MAS, FSCA, FINMA, FMA
Oanda $0 Forex, and Stocks 75+ 0.6 FCA, PFSA, ASIC

Note: CFDs are not allowed in the US due to legal requirements. As such, we have not included them in the products available for some brokers, despite offering it in other geographies.

Factors to consider when selecting a Forex Broker

Selecting the right Forex broker can be overwhelming with so many options available in the market. However, several critical factors can help you choose the best one that aligns with your trading goals and needs. Below are some of the crucial criteria that we have used to evaluate and rank Forex brokers:

  • Regulatory Compliance: The best Forex brokers are regulated by credible financial authorities. This ensures that the broker adheres to strict regulations and standards, including client fund protection, transparent pricing, and fair trading practices.
  • Trading Platform: The trading platform is the primary tool for executing trades, and choosing a broker that provides a reliable, user-friendly platform with some advanced features is essential. Popular trading platforms include MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Additionally, some brokers offer proprietary trading platforms, TD Ameritrade’s thinkorswim or IBKR’s Trader Workstation (TWS).
  • Commissions and Spreads: Forex brokers charge commissions or spreads for their services. It’s essential to choose a broker that offers competitive pricing without compromising on the quality of service. Some brokers charge low commissions but have wider spreads, while others have high commissions but lower spreads.
  • Trade Execution Speed: Fast and accurate trade execution is critical in Forex trading. Ensure that your broker provides fast execution speeds with minimal slippage, as delays could result in missed trading opportunities.
  • Liquidity: Access to deep liquidity pools ensures traders can execute trades at the best possible prices. Choose a broker that provides access to a vast network of liquidity providers to ensure you can trade all major, minor, and exotic currency pairs.
  • Customer Support: Excellent customer support ensures a smooth trading experience. Choose a broker that provides responsive support through various channels, including email, phone, and live chat.

By evaluating these factors, you can select the right Forex broker that aligns with your trading goals and needs.

Bottom Line

The Foreign Exchange (Forex) market stands as the largest and most liquid financial market globally, boasting an average daily turnover of over $7.5 trillion. Although Robinhood does not currently offer Forex trading, in this article, we have highlighted some of the best alternatives in our opinion to explore, such as Interactive Brokers, TD Ameritrade, IG, and Oanda

When selecting a Forex broker, consider factors such as regulatory compliance, trading platform quality, commissions and spreads, trade execution speed, liquidity, and customer support.  Each broker has pros and cons, so it is important to choose wisely the one that best suits our needs.

FAQ

What is Robinhood?

Robinhood Markets, Inc. is a well-known fintech firm that provides an online discount brokerage platform. It was launched in 2013 with a focus on democratizing access to financial markets which has largely contributed to the company’s rapid growth and influence in the investment industry.

Robinhood has become well-known for introducing trading with its commission-free model and easy-to-use app. The platform’s sleek design attracts both beginners and retail investors, making it a standout choice in the financial market.

Does Robinhood work Internationally?

No, Robinhood doesn’t work internationally. To use Robinhood, you must be a US citizen, a permanent resident, and have a valid US visa. You can find Robinhood alternatives for international users here.

Can you access Robinhood outside the US with a VPN?

No, outside US investors cannot use a VPN to open a Robinhood account. Upon account opening, Robinhood requires specific documentation to prove you are a US citizen. However, if you are a US citizen with a Robinhood account and outside the US, you can still access your account (exceptions may apply).

Ricardo Fernandes
Fintech Analyst

Ricardo Fernandes is an undergraduate management student with a passion for finance and business. He serves as the CEO of one of Portugal's most promising junior initiatives, the Minho Investment Association, and holds the role of Ambassador for the renowned BIG-4 firm, Ernst & Young (EY).

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