Robinhood alternatives for Australians

• Frustrated that popular US share trading platform Robinhood is not available in Australia?
• There are alternatives to Robinhood that let you trade in US shares from these shores.

Robinhood is a hugely popular platform that lets people trade US stocks without commission. Users are drawn to its simple design and of course the lack of fees on share trades.

The problem for Australians hoping to use Robinhood is that it’s not available here. However, all is not lost!

There are a number of platforms available in Australia that let you trade US stocks without having to open a United States trading account.

Let’s take a look at some options.

Based on what you can trade — not just US shares, but also ETFs, crypto, commodities, etc. — we think the closest alternative to Robinhood in Australia is eToro.

eToro offers commission-free trading on US stocks as well as access to a number of other global exchanges, including those in London, Hong Kong and Zurich. eToro also offers fractional trading, which means you can buy part of a share — useful for investing in more expensive companies such as Amazon and Tesla. You calso invest in other assets including crypto, currencies, and CFDs.

At present, eToro offers 1,257 US stocks (766 on the NYSE and 491 on NASDAQ), which is less than other platforms such as Stake and SelfWealth. However, each available stock is listed on the site, a handy option if you want to browse.

eToro markets itself as a social trading platform, which means users can discuss their trades and work together to invest in shares they believe will pay off. For example, when you call up a share on the app, it will give you a list of recent comments from fellow traders. It also offers social-trading, which means you can directly copy the trades of other investors.

eToro has a five-tier loyalty program which ranges from Silver to Diamond, providing various benefits according to realised equity. The minimum deposit on eToro is USD $200.

Australian platform Stake has a very focused approach. It only offers US stocks, but there are plenty of them available. Stake’s website homepage boasts you can choose from more than 3,800 stocks, and trade commission-free. It also offers fractional investing in shares.

Stake has a stripped-back interface and to find stocks you have to search for them by code. However, it also features lists of trending stocks in key sectors.

The minimum deposit is USD $50 and when you fund your account you receive a free stock in Nike, DropBox or GoPro. (In our experience, you're most likely — by far — to get GoPro.)

Stake also offers a premium product, Stake Black. For USD $9 month billed monthly, or USD $90 per year (USD $7.50/ month), Stake Black gives users access to analyst ratings, price targets and full company financials as well as instant trades - you don’t have to wait for the proceeds of a sale to clear after execution, a process that normally takes two days, before you can reinvest.

If you want instant trades without buying the premium service, you will be charged 0.5 per cent.

SelfWealth is another Australian-based platform that allows you to trade US stocks, as well as Australian shares and ETFs. However, it's not free. SelfWealth charges a flat fee of USD $9.50 for all trades on US markets and AUD $9.50 for local trades.

You will have to set up an account to trade Australian shares before you can establish one to trade US shares and you can only fund your US account from your Australian account.

SelfWealth will charge you a 0.6 per cent fee when you move money between your accounts.

Setting up an account gives you free 90-day access to its Premium service, which offers features including an impressive array of share analysis information, detailed stock reports and, like eToro, a social trading aspect.

SelfWealth says being part of its community will let you follow other investors so you can see their portfolio, the trades they are making and the returns they’re achieving. All information is anonymous.

After the free access expires, you will have to pay $20 a month for Premium access.

The minimum deposit is AUD $500, to take into account the minimum order size for a first order of shares on the ASX.

We are now starting to move into more complex territory. CMC Markets was started in the UK in 1989 by Peter Cruddas, a Londoner who left school decades earlier at 15 with no qualifications.

His firm concentrates on CFD’s and spread betting however, they do also offer commission-free trading in US, UK, Canadian and Japanese stocks.

CMC charges a commission for trading Australian shares, which depends on the number of trades you make each month (AUD $11 per trade if you make less than 11 trades per month and AUD $9.50 per trade if you make 11 or more trades per month).

The minimum trade for all international shares with CMC markets is AUD $1,000, so this not the platform for you if you just want to start small.

As well as a foreign exchange fee of 0.6 per cent, CMC adds a 2 per cent forex 'buffer' to cover overnight fluctuations in currencies while the trade is being made. If the buffer level isn't reached, you won't pay that amount.

Another British firm, IG Markets started in 1975 so it is about as legit as they get. While it is best known for CFD trading, you can trade in the US, UK, German and Irish stock markets commission — free like Robinhood. Furthermore, you can trade Australian shares at a commission of $5 if you make at least three trades in a month, or $8 if you make less trades than that. IG charges a 0.7 per cent for international currency transfer.

They also charge a quarterly subscription fee of $50. However, this is waived if you trade at least three times on your share trading account during the quarter or hold no open positions in your share trading account at the end of the quarter.

Setting up an account is quick and straightforward and you can fund your account through credit/debit card, bank account or Paypal.

The minimum deposit is A$450. The platform is clearly laid out and easy to navigate and also offers an excellent education section with videos.