Robinhood has decided to stop servicing Canadian customers, so if you’re one of the ones affected, or are just looking for an alternative brokerage to use, you’ve come to the right place.
You use the Robinhood app or website to trade stocks for free. But did you know that the Canadian version of Robinhood has many competitors that will do the same thing?
Keep reading to find out what alternatives are out there and who is best positioned to help.
What Is Robinhood?
Robinhood is one of the most popular investing apps in America. Its popularity began to rise between 2020 and 2021.
The investment app was launched in 2013 and has since become the most popular app for investors in the United States.
Robinhood does not charge users any fees to use the app and has a sleek user-friendly interface that makes it easy for users to manage their various investments.
Baiju Bhatt and Vladimir Tenev founded Robinhood. It offers users a trading app and website to trade stocks, forex, and cryptocurrencies.
The platform is registered with the Securities and Exchange Commission (FINRA).
It is regulated by the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation (SIPC).
Millions of users joined the app in the recent years after it was launched, with these people being blamed as the cause of the rise in day trading seen in the investment arena. Its user base is now more than 13 million.
Robinhood has, however, recently seen a drop in revenue, with its stock price also coming down as the investors who use the app struggle to stay afloat during challenging economic times and the rising cost of living in the United States, especially as seen in the cryptocurrency and technology sectors.
When Will Robinhood Come To Canada?
However, as popular as the investment app, it can only be accessed by people in the United States.
It is not available to anyone living in the United States. The investment app is not currently available in Canada, and there is yet to be a clear answer as to why that is the case.
Robinhood only has a license to operate inside the United States. The app is only mandated to sell securities within the United States and not outside of it.
It is also not allowed to sell to people who are not legal U.S. citizens. This shows that even U.S. citizens can get access to the app even when they travel outside the United States.
There was a time when Robinhood announced that it was coming to Canada and even stated that from there, it would be launched in the United Kingdom and Australia.
However, these plans have yet to see the light of day; now, Canadian residents cannot access Robinhood.
Can Canadians Use Robinhood?
At present, Robinhood hasn’t extended its services to Canada, and there’s no definitive evidence suggesting that this might change.
The company is solely licensed to conduct its operations within the borders of the United States. This means, that if you’re in Canada, downloading the Robinhood app isn’t an option.
US residents, however, are granted access from almost any corner of the globe, but such a privilege does not extend to Canadian residents.
Robinhood once signaled via a tweet its intended expansion into Canada. It also announced plans to expand into the UK and Australia.
Yet, these expansion schemes were indefinitely put on hold in 2020. At this time, there’s no clear indication that Robinhood intends to broaden its geographical reach beyond the US in the foreseeable future.
However, Canadian residents need not despair; there are exceptional alternatives to Robinhood available in Canada.
Can You Use Robinhood App In Canada?
Canadian residents cannot download the Robinhood app because the investment service is not accessible in Canada.
The app can only be used by a resident of the United States. Therefore the app cannot be used by Canadian residents at the moment.
Where Is Robinhood Not Accessible?
Canada is one of many countries that need to catch up on the fantastic features Robin Hood offers in the investment arena. Apart from Canada, there are several other countries where Robinhood cannot be accessed. These countries are:
- North Korea
- Cuba
- Crimea, Ukraine
- Iran
- Syria
5 Robinhood Alternatives You Can Use in Canada
Robinhood is no doubt one of the best investment apps in the world at the moment.
Sadly, the app cannot be used in Canada because it only holds a license that allows it to operate in the United States.
However, one should refrain from fretting about that because some great Robinhood alternatives are available in Canada, which is precisely what this article is about.
Today’s article will present some of the best alternatives to the Robinhood investment app you can use in Canada to manage all your investments smoothly.
With that said, let us now take a look at some of the best Robinhood alternatives for investors in Canada. These alternatives offer some of the best features suitable for investing in Canada.
Questrade
This is the biggest discount broker available in Canada. It is also an independent broker.
Users enjoy commission-free trading on Questrade when they buy ETFs. It also shares a lot in common with Robinhood.
Questrade has several trading platforms for users. It can be used on the desktop, and there is also a mobile app for people who want to handle their trades while on the go.
There are also advanced trading tools made available for traders, along with market research tools.
Users also get to enjoy commission-free trades when they buy ETFs. However, fees are applied when they sell their ETFs.
Fees are also applied when traders buy and sell stocks, mutual funds, and other investment vehicles.
They also offer users registered and non-registered accounts. These include RRSP, RESP, TFSA, RRIF, LIF, margin, and corporate accounts.
Traders are given $50 in free trades once they open and fund an account. However, traders must have a minimum of $1000 before trading on Questrade.
Users on Questrade can trade several investment vehicles such as stocks, GICs, CFDs, IPOs, ETFs, precious metals, forex, mutual funds, options, and bonds.
Questrade is part of CIPF and the Investment Industry Regulatory Organization of Canada.
This means that the accounts of users are protected with up to $10 million, even if Questrade somehow ends up bankrupt.
Robinhood VS. Questrade
| Features | Robinhood | Questrade |
|---|---|---|
| Accessibility | Only for residents of the United States | Available to all Canadian residents |
| Account Minimum | No minimum account balance requirement for regular accounts | No minimum account balance requirement for regular accounts |
| Account Types | Offers Regular, Margin, and Retirement accounts | Offers Regular, Margin, Retirement, RESP, TFSA, Forex, CFD accounts |
| Commission on Trades | Commission-free on trades in the U.S. | $4.95 – $9.95 per trade for equity trades |
| Research Tools | Provides basic research tools and news feeds | Comprehensive suite of research tools including advanced charts, market data, analysis |
| Mobile App | User-friendly app with a clean, straightforward interface | Provides a mobile app that supports trading, account management, and research tools |
| Customer Service | Primarily digital customer service with email support and limited phone support | Offers 24/7 customer service via phone, live chat, and email |
Wealthsimple Trade
This investment app can be used for trading hundreds of stocks and ETFs in American and Canadian stock exchanges.
Like Robinhood, this investment app does not charge users commissions when they use it to trade.
It also does not have any minimum requirements for users to adhere to.
IOS and Android users can access the app since it is available on both app stores with high ratings.
The app is intuitive and easy to use for even new users. Users can also use the platform’s desktop version if they prefer.
There are no commissions charged on Wealthsimple, just like on Robinhood.
Users do not pay to buy or sell their stocks or ETFs, allowing them to save more money.
However, there are fees charged when users trade USD pairs. Market data is also delayed by 15 minutes.
Users can open taxable accounts, or they can choose to trade within their RRSP and TFSA accounts.
They also do not need to have any required minimum before they can open an account for trading.
They also get a $25 cash bonus when they deposit and trade more than $200 worth of stocks and ETFs within 45 days after opening their accounts.
However, only a personal non-registered account can be opened. These are RRSP and TFSA.
The Canadian Investor Protection Fund offers security up to $1 million if the company goes bankrupt.
Users can purchase fractions of a share, allowing them to avoid paying thousands of dollars needed to acquire whole shares.
Fractional shares of Tesla, Microsoft, Google, Apple, Amazon, and others can be purchased.
Users can sign up and trade cryptocurrencies such as Bitcoin and Ethereum. These are available to trade on a beta basis.
Robinhood VS. Wealthsimple Trade
| Features | Robinhood | Wealthsimple Trade |
|---|---|---|
| Accessibility | Only for residents of the United States | Available in Canada, UK, and USA |
| Account Minimum | No minimum account balance requirement for regular accounts | No minimum account balance requirement |
| Account Types | Offers Regular, Margin, and Retirement accounts | Offers Personal, TFSA, RRSP accounts and Crypto |
| Commission on Trades | Commission-free on trades in the U.S. | Commission-free trades in CAD and USD |
| Research Tools | Provides basic research tools and news feeds | Limited research tools (basic stock information provided) |
| Mobile App | User-friendly app with a clean, straightforward interface | User-friendly mobile app with easy-to-use interface |
| Customer Service | Primarily digital customer service with email support and limited phone support | Digital customer service, supplemented by phone and email support |
Qtrade
This is one of the best investment apps to look at if you are looking for something that will offer you features similar to that of Robinhood in Canada.
Qtrade has one of the lowest rate fees in Canada. It also offers a mobile experience that rivals Robinhood itself.
Users of Qtrade get access to both American and Canadian markets. The platform has a simplified trading interface where charts can be understood easily.
Users can also manage their portfolios with 100 commission-free ETFs and mutual funds.
There are discounted commissions for day active traders as well. Users can access the demo account to hone their skills before facing the markets.
However, Qtrade cannot be accessed by American traders, and users in Canada cannot fund their accounts through credit cards or e-wallets.
Robinhood VS. Qtrade
| Features | Robinhood | Qtrade |
|---|---|---|
| Accessibility | Only for residents of the United States | Available in Canada |
| Account Minimum | No minimum account balance requirement for regular accounts | $1,000 CAD minimum account balance |
| Account Types | Offers Regular, Margin, and Retirement accounts | Offers Cash, Margin, TFSA, RRSP, and other registered accounts |
| Commission on Trades | Commission-free on trades in the U.S. | $8.75 per trade for equity trades |
| Research Tools | Provides basic research tools and news feeds | Comprehensive research tools and data |
| Mobile App | User-friendly app with a clean, straightforward interface | Mobile app available with full trading capabilities |
| Customer Service | Primarily digital customer service with email support and limited phone support | Phone and email support available during market hours |
Scotia iTrade
This platform is a retail broker of Scotiabank, one of Canada’s biggest banks.
Scotia iTrade has been awarded several times for the innovative trading platforms and services offered to users.
Scotia iTrade offers discounted commissions and one of the best trading experiences for traders in Canada.
It is even more advanced when compared to Robinhood. Free educational materials like demo accounts are provided for new platform traders.
However, Scotia iTrade charges an annual fee for registered and non-registered accounts.
There is an additional monthly cost when users want to access the Premium FlightDesk platform.
Robinhood VS. Scotia iTrade
| Features | Robinhood | Scotia iTrade |
|---|---|---|
| Accessibility | Only for residents of the United States | Available in Canada |
| Account Minimum | No minimum account balance requirement for regular accounts | No minimum account balance, but some accounts require $25,000 |
| Account Types | Offers Regular, Margin, and Retirement accounts | Offers Cash, Margin, TFSA, RRSP, and other registered accounts |
| Commission on Trades | Commission-free on trades in the U.S. | $24.99 per trade; can be lower with qualifying conditions |
| Research Tools | Provides basic research tools and news feeds | Comprehensive suite of research tools and resources |
| Mobile App | User-friendly app with a clean, straightforward interface | Provides a mobile app with full trading functionality |
| Customer Service | Primarily digital customer service with email support and limited phone support | A comprehensive suite of research tools and resources |
Interactive Brokers
This is another investment platform that is very similar to Robinhood, and it is available to Canadian traders.
It charges no commissions and comes with a mobile app that is relatively user-friendly.
However, the only downside here is that users in Canada will have to sign up for a Pro account before they can get access to Interactive Brokers.
New traders might also need clarification on the Pro trading desktop platform. The fees can also seem expensive compared to other broker firms available in Canada.
American and Canadian traders can access this platform, offering assets such as ETFs, stocks, forex exchange, etc.
However, there are tax liability implications for Canadian traders. Canadian traders cannot get access to the Lite version of the platform, and the mobile interface can be said to be poor for proper interaction.
Robinhood VS. Interactive Brokers
| Features | Robinhood | Interactive Brokers |
|---|---|---|
| Accessibility | Only for residents of the United States | Available in over 200 countries and territories |
| Account Minimum | No minimum account balance requirement for regular accounts | $0 minimum for IBKR Lite; $2000 for margin account (IBKR Pro) |
| Account Types | Offers Regular, Margin, and Retirement accounts | Offers Cash, Margin, Retirement, and other types of accounts |
| Commission on Trades | Commission-free on trades in the U.S. | Commission-free for IBKR Lite; tiered or fixed for IBKR Pro |
| Research Tools | Provides basic research tools and news feeds | Comprehensive suite of sophisticated tools and resources |
| Mobile App | User-friendly app with a clean, straightforward interface | Mobile app available with advanced trading features |
| Customer Service | Primarily digital customer service with email support and limited phone support | Phone, chat, and email support during market hours |
Frequently Asked Questions
Robinhood can only be accessed in the United States. People outside of the United States cannot get access to Robinhood.
However, there are great alternatives for those based in Canada, as shown in this article.
Several investment apps similar to Robinhood are available in Canada, and five of them have been deliberated on in this article. You have to choose one that suits your needs.
The company makes its money selling users’ information to other companies that are higher than Robinhood itself.
They also charge high fees for currency conversion. This is similar to what is done by Wealthsimple, which is available in Canada.
Conclusion
As usual, we cannot decide which Robinhood alternative is best. It will all come down to your investment strategies and how each app shown appeals to you in terms of services and features.
This article today has been beneficial to you. For more payment gateways, you can also check out Cash app alternatives and Venmo alternatives that you can use in Canada.
