Robinhood Netherlands: Expansion Plans and Alternatives for 2022

Franklin Silva| Updated January 18th, 2022
Logos of robinhood alternatives in Netherlands

You have probably heard about the Robinhood app on YouTube and want to know if it’s available in the Netherlands, 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 the Netherlands, its expansion plans, and the alternatives available in Nederland? 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-TradeTD Ameritrade, and Charles Schwab, announced in quick succession that they were eradicating trading fees. 

Is Robinhood Available in the Netherlands?

Unfortunately, Robinhood is not yet available outside the US. It had planned to open in the UK in 2020, but it was postponed indefinitely due to Covid-19. Their global expansion has taken no step further since then.

But do not lose hope! In Nederland, you will find some alternatives that have proven to be 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.

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 (more info: here).

Robinhood Alternatives in the Netherlands

To help us answer this question, we focused on commission-free brokers, which are available in most countries in The Netherlands. Given that, here are our suggestions:

XTB

It allows you to invest in CFDs, cryptocurrencies, and forex with low fees. At first sight, it stands out due to the more complex interface and the comprehensive analysis tools, but after some days, you will get used to it! It also boasts a massive selection of educational tools.
Disclaimer: 79% of retail CFD accounts lose money.

eToro

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 20 million clients worldwide.
Disclaimer: 67% of retail CFD accounts lose money.

BUX Zero

a recent broker that offers commission-free stocks, ETFs and cryptos trading in the Netherlands. Very transparent and regulated by top-tier AFM. New users will receive one free share worth up to €200.
Disclaimer: Investing involves risks. You can lose your deposit.

Revolut Trading

1 free trade every month. Mobile app only. It charges a 0.12% custody fee per annum.

Trading 212

Commission-free stock and ETF trading (+10,000 global stocks and ETFs), 0.15% of currency conversion fee, and presents fractional shares. Over 1.5 million customers.
Disclaimer: 76% of retail CFD accounts lose money.

All the companies here mentioned are regulated and/or registered in the Financial Conduct Authority (FCA) in the UK.

1# XTB

Robinhood Netherlands: Expansion Plans and Alternatives for 2022 1
Visit XTB
79% of retail CFD account lose money.

XTB at a glance

0% Commissions(Stocks)
Mobile App
ProductsCFDs, Stocks, Commodities, Forex, and Cryptocurrencies
Minimum Deposit0€
RegulatorsCySEC, FCA, KNF, CNVM, and IFSC

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 compared to its competitors.

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.

2# eToro

Robinhood Netherlands: Expansion Plans and Alternatives for 2022 2
Visit eToro
67% of retail CFD account lose money.

eToro at a glance

0% Commissions(Stocks and ETFs)
Mobile App
ProductsCFDs, ETFs, Stocks, Commodities, Forex, and Cryptocurrencies
Minimum Deposit$50
RegulatorsCySEC, FCA, and ASIC

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 20 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 ETF trading in Europe (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, spreads can be high for some products. The only currency accepted is the USD, which means that you’ll be charged currency conversion fees upon deposit and withdrawal if you deposit in another currency. For more information, read our review of eToro in the Netherlands.

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.

3# BUX Zero

Robinhood Netherlands: Expansion Plans and Alternatives for 2022 3
Visit Bux Zero

BUX Zero at a glance

0% Commissions
Mobile App
ProductsStocks and ETFs
Minimum Deposit0€
RegulatorsAFM

BUX Zero is an online broker launched in 2019 that has positioned itself as an affordable way for Europeans to increase their savings. It brings a simple and elegant way to start investing. 

It allows users to trade US and EU stocks (Dutch, German, Belgian, French, and Austrian) and 30+ ETFs, completely commission-free. New users will also benefit from one free share worth up to €200 (terms available on P.30 of the Bux Zero Client Agreement). You also have access to fractional investing, making it easy to invest in companies with big share prices (Amazon, Tesla, Alphabet,…) starting for as little as €10.

In addition, crypto trading is also available for free! Investors can trade Bitcoin, Ethereum, Litecoin, among other cryptocurrencies.

Another great point for BUX Zero is that it is very transparent: it has no hidden fees, and if you want to benefit from more premium services such as market or limit orders, it’ll cost you 1€ (all of that is available in the pricing page).

On the downside, the only place to trade is its mobile app (no desktop or web trading platform available), the products available are limited and it has no demo account.

BUX Zero is regulated by the Dutch Authority for Financial Markets (Autoriteit Financiële Markten – AFM). If you want to learn more, check our Bux Zero Review.

Along with BUX zero, BUX’s flagship platform, you can still use BUX X to invest in CFDs and BUX Crypto if you only want to buy cryptocurrencies. Note that both of these services are expected to be combined with BUX Zero for consolidation processes as the company progresses to create a single destination for investors.

Investing involves risks. You can lose your deposit.

4# Revolut Trading

Robinhood Netherlands: Expansion Plans and Alternatives for 2022 4
Visit Website

Revolut at a glance

0% Commissions(only 1 free trade a month, US stocks)
Mobile App
ProductsStocks, Cryptocurrencies, Gold, and Silver.
Minimum Deposit0€
RegulatorsSEC, FCA, and FINRA

Founded in 2019, Revolut Trading is part of the Revolut app (existing since 2015) and provides its users with an efficient way to invest (all in one place). It only allows investment in American stocks (+750 companies) free of charge up to 1 transaction per month, cryptocurrencies with a spread of 1.5%, and gold and silver with a spread of 0.25% when the market is open. Still, there are no inactivity or withdrawal fees.

The app is super intuitive, and the account opening process is 100% digital, fast, and secure. Unfortunately, it still has a restricted range of financial products, and the account can only be denominated in dollars. Some of the non-accessible assets are ETFs, CFDs, Forex, bonds, and options. Furthermore, it has no educational or market research material, and it charges an annual custody fee of 0.12%.

Learn more in our in-depth Revolut Trading Review.

5# Trading 212

Robinhood Netherlands: Expansion Plans and Alternatives for 2022 5
Visit Trading 212
76% of retail CFD account lose money.

Trading 212 at a glance

0% Commissions(Stocks and ETFs)
Mobile App
ProductsCFDs, Stocks, ETFs, Commodities, Forex, and Cryptocurrencies
Minimum Deposit€1
RegulatorsFCA and FSC

Founded in 2006, Trading 212 is a fintech based in London that aims to democratize the entire investment process through a simple mobile application. The company aims to do this by allowing anyone to invest in over 10,000 stocks and ETFs, Forex, commodities, CFDs, and cryptocurrencies. Over 15 million people have already downloaded the app. In 2017, it was the trading app with the most downloads in Germany and, since 2016, it has remained 1st in the United Kingdom.

In Trading 212, you will find commission-free stock and ETF trading, fractional shares, and even an automatic investment system (Robo-advisor). Opening an account is extremely quick and easy. On the downside, it shows limitations regarding available products, such as the lack of bonds and options. It charges a 0.15% currency conversion fee when buying assets in a currency different from your base account.

Within the app, you will notice two distinct sub-platforms: Trading 212 Invest, where you can trade a range of assets free of charge and trading 212 CFD, where you may trade leveraged financial products (CFDs).

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this broker. It is important to understand how CFDs work and the risks involved in trading, such as losing all invested capital.

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 FCA in the UK, BaFin in Germany, AMF in France, or AFM in the Netherlands, the range of products it allows you to trade (not all platforms allow you to trade EU stocks), 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.

Happy investments!

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.