Robinhood Alternatives in the U.K: 2021 Guide

Robinhood AlternativesRobinhood was planning to launch in the U.K in 2020.  But it looks like they have abandoned those plans.  Thankfully if you're looking to invest in US stocks without paying any commissions, there are a couple of good options- eToro and Stake.

I currently use both of these platforms.  I use Stake to invest in ETFs and I use eToro to build a portfolio of tech stocks (like Apple, Tesla, Netflix, Amazon etc).

Here are my favourite Robinhood alternatives:

eToro

On eToro you can invest in real stocks (not just CFDs like on some platforms).  eToro also offers social trading features where you can follow and even copy the trades made by other traders.

Here are some of the key eToro features you should know about:

  • Commission Free Stock Trades – Buy and sell stocks like Apple, Netflix etc without paying any brokerage fees.
  • Real Stocks – On eToro, when you buy stocks in the U.K, you're buying the actual underlying asset.  Not just trading a contract.  This means you can buy and hold your shares for long term investing strategies.
  • Multiple Markets and Assets – On eToro you can trade more than stocks.
  • Fractional Investing – Buy just a fraction of a share.  Invest just $50 at a time in a stock.  This is great for investing in stocks like Alphabet that are priced high.

Stocks on eToro

Stake

Stake is a lot like eToro.  They also offer commission free trading.  The biggest difference is they offer a subscription plan for more advanced trading features.  These features are free on eToro.  However Stake does list more US stocks and ETFs compared to eToro.

  • Commission free trading – You won't pay any brokerage commissions when you buy or sell shares.
  • Huge range of Stocks and ETFs – trade overt 2000 different stocks and ETFs.
  • Fractional Investing – invest in just a fraction of a share.  You can start investing with as little as $10.

P.S – You can get a free stock (either GoPro, Dropbox, or Nike) when you sign up using a Stake referral code.  I'm not sure if this code will work in all countries.

Stake App

Should you invest in US Shares?

Investing in US shares when you're based in the UK (or other countries) has some pros and cons.  One pro is you can invest in many of the companies that you use.  Companies like Amazon, Google (Alphabet), Apple, Netflix etc are all listed on US stock exchanges.  Apps like eToro and Stake give you access to more markets.

One risk is a fluctuating currency.  This can work both for and against you.  But it's something to be aware of.

If you're planning on investing in more risky shares like GME or AMC, remember to never invest more than you can afford to lose.  Those stocks are currently extremely volatile.

 


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