Robinhood launched in the UK: Review and Alternatives in 2024

You have probably heard about the Robinhood app on YouTube and want to know if it’s available in the UK, 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, alongside its biggest rivals, Webull, E*TRADE, and TD Ameritrade.

After setting up a waiting list, Robinhood has officially launched its app in the UK. Want to know the pros and cons of the platform and the alternatives before making a final decision regarding opening an account with them? We’ve got you covered!

Robinhood launched in the UK

1# eToro

Founded in 2007,  eToro is an international online broker with over 30 million users who can trade over 3,000 financial assets, including stocks, ETFs, Cryptos, and CFDs on Stocks, ETFs, Commodities, Forex, Indices, and Cryptocurrencies. Stocks and ETFs are traded commission-free, as a whole, or fractional shares (other fees apply).

eToro’s investment platform, accessible through both web and mobile platforms, is a social trading hub. Here, investors can engage in discussions about investments, speculations, and market news with fellow investors. eToro also allows users to replicate trading strategies (CopyTrader™) and invest in ready-made investment portfolios (Smart Portfolios) based on thematic investment strategies.

The demo account is particularly useful for a beginner ($100,000 of virtual money). It lets you have a real experience hands-on as you would be using real money. So, when switching to a real account, you will notice no difference between your training and the real-life of investing. On the downside, there is a withdrawal of $5, and the only base currency is the USD. So, you’ll be charged currency conversion fees upon deposit and withdrawal if you deposit in GBP.

eToro is fully regulated and supervised by the Financial Conduct Authority (FCA).

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 provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2# Interactive Brokers

Founded in 1978 and publicly listed in NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker that 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, 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 also 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.

3# XTB

Founded in 2002, XTB is a major player in the brokerage industry with extensive worldwide experience, regulated by the Financial Conduct Authority (FCA) – plus other relevant regulatory bodies – and listed on the Warsaw Stock Exchange.

You can invest through xStation 5 and xStation Mobile in different investment products, such as stocks, ETFs, and CFDs on stocks, Forex, indices, commodities, and cryptocurrencies (this product offering may vary slightly from country to country). It offers 0% commission on stocks and ETFs. Also, you get 0% commission on stock and ETF CFDs.

Opening an account and transferring money is a quick and hassle-free process. For beginners, it presents a demo account where you can trade as if it were real money to help you feel the investment platform firsthand, and you get access to educational tools. For intermediate and advanced investors, you will find plenty of technical and fundamental tools to help you better assess your investment decisions.

On the downside, you will face an inactivity fee of £10/month after one year of non-trading, and if you have not deposited in the last 90 days, it charges high commissions on CFDs of cryptocurrencies but low costs for Forex. XTB is not available in the United States and Australia.

Want to know more about XTB? Check our XTB Review.

4# Webull UK

Founded in 2017 in the US and launched in the UK in July 2023, Webull joins the British brokerage industry with low commissions. At the moment, it only offers access to US stocks (over 10,000). New users get a signup promotion.

As a UK user, you also have access to a demo account where you can buy and sell as you would with real money. You can only deposit in pound sterling (GBP), which means that when investing in US stocks (traded in US dollars), you will be charged a currency conversion fee of 0.35%. Besides, each trade has a cost of 0.025%. Basically, you would pay roughly 0.375% per transaction (minimal regulatory fees also apply).

The offering of fractional shares is also crucial since most US stocks trade at high market values per share. Still, the limited range of asset types (no ETFs, bonds, options,…) and only offering a general investment account (no tax-efficient accounts like Stocks and Shares ISA) may affect users also looking for broader solutions.

Finally, Webull UK is authorised and regulated by the Financial Conduct Authority (FCA). As such, it is also under the Financial Services Compensation Scheme (FSCS) protection, which protects your money (assets + cash) up to £85,000.

5# InvestEngine

InvestEngine is a UK-based broker and robo-advisor launched in 2020. It provides users with access to low-cost, diversified portfolios of exchange-traded funds (ETFs) designed to meet their investment goals and risk tolerance. InvestEngine offers managed portfolios and a do-it-yourself (DIY) option for investors who prefer to build and manage their portfolios.

Pros:

1. Low-cost investing: InvestEngine provides a low-cost solution for investing, with competitive fees for both managed portfolios and the DIY option.
2. Diversification: The platform offers a range of ETFs, enabling investors to create a diversified portfolio tailored to their risk tolerance and investment objectives.
3. Auto-rebalancing: For managed portfolios, InvestEngine periodically rebalances the portfolio to maintain the desired level of risk and diversification.
4. User-friendly interface: The platform is easy to navigate and provides helpful tools like risk assessment questionnaires and educational resources.

Cons:

1. Limited investment options: Compared to some other platforms, InvestEngine offers a smaller selection of ETFs. Investors looking for a wider range of investment options might find this limiting.
2. No individual stocks or bonds: InvestEngine focuses exclusively on ETFs, which might not be suitable for investors who wish to invest in individual stocks, bonds, or other types of instruments.

All in all, it is a great solution for buy-and-hold investors looking to only invest in ETFs for the long term.

Want to know more about InvestEngine? Check our InvestEngine review.

6# Freetrade

Freetrade is a mobile-only, commission-free UK stockbroker founded in 2016 that lets you invest in more than 6,000 stocks (US, UK, German, Finnish, and Dutch), as well as ETFs, for free.

Freetrade came to revolutionize the traditional brokerage industry. A lot of brokers still present high complexity over their platforms and product offerings. Freetrade is on a mission to help customers achieve better long-term financial outcomes and, for that purpose, it wants to be as transparent and trustworthy as possible. Ultimately, their goal is to allow everyone to benefit from wealth creation.

In the Freetrade app, you will not find CFDs and other related complex products; it does not promote day trading and has no hidden fees. The accounting opening process is quick and smooth. The mobile app is remarkably user-friendly. The main drawback is the limited product offering (no options, Forex, CFDs, Commodities or Cryptocurrencies).

As displayed on their website, Freetrade makes money through 3 revenue streams: ISA, £5.99/month, their premium service (£9.90/month), a fee of 0.45% of the Base FX rate on each US order placed, and a small amount of interest earned from banks on customers’ cash.

They operate under a freemium (free+premium) business model. For £9.90/month, users get extra features, such as limit orders, the ability to set stop loss, more stocks, etc. If you’re interested, you can also read our full Freetrade Review.

Which platform should you choose?