Robinhood is a popular US-based trading app that doesn’t charge any commissions on its trades. Unfortunately, this app isn’t currently available in Canada – which has left many Canadians wondering when it will make its way across the border.
Unfortunately, there’s no definitive answer for when Robinhood will arrive in the Great White North. That said, there are some substitutes that you can use to save money on commissions while you wait for this coveted app to enter Canada’s financial landscape.
What is Robinhood?
Robinhood is a US-based trading app that lets US residents make commission-free trades for a number of financial products. These include stocks, options and exchange-traded funds (ETFs). However, it doesn’t allow its investors to trade mutual funds, bonds or precious metals. It also doesn’t let its users make trades on registered accounts like retirement savings accounts.
Is Robinhood available in Canada?
Robinhood Canada doesn’t currently exist, despite a high demand for the service. This is unfortunate given that there aren’t that many trading platforms offering free commissions in Canada. That said, there are some suitable alternatives that you can consider depending on what types of trades you want to make.
When will Robinhood come to Canada? Robinhood doesn’t have any publicly-announced plans to come to Canada, though there has been speculation that it will expand its services across the border at some point. The reason Robinhood has not made the move to Canada is that it’s only licensed to sell securities in the US. That said, it does have plans to set up shop in the UK in 2020, which means it’s beginning to shift its focus towards more global markets.
Why is Robinhood so popular?
Robinhood is tremendously popular in the US because it offers commission-free trades. This means you don’t pay any extra money on top of the spread to execute your trades. It also charges a low margin fee for its services, which means you’ll end up with more money in your pocket at the end of the day.
The mobile app that Robinhood offers is also very user-friendly, which makes it perfect for both beginner and seasoned investors. An added benefit is that it allows investors to start trading with no minimum balance requirements, which is ideal for users who don’t have a large amount of cash to invest right off the bat.
How does Robinhood make money?
Robinhood makes money from the following sources:
Robinhood Gold subscriptions
Interest on margin trading accounts
Lending securities to counterparties
Depositing uninvested brokerage in interest-bearing accounts
Getting rebates from platforms and exchanges that execute trades for Robinhood clients
Miscellaneous fees for certain services like instant withdrawals to bank accounts and withdrawals to non-Robinhood debit cards
What are some alternatives to Robinhood Canada?
There are a number of alternatives to Robinhood Canada, depending on what type of trades you want to make.
Wealthsimple Plus ($10/month): Get a USD account with zero foreign exchange fees and instant deposits up to $5,000.
Only trade stocks, ETFs and crypto
Limited research tools
0% - 1.50% conversion fee every time you buy/sell US securities (waived with Wealthsimple Plus)
Wealthsimple is the winner for Best for Beginners and Best for Canadian Stocks in the 2022 Finder Stock Trading Platform Awards. Consider this platform if you want a simple, user-friendly platform and zero-fee stock and ETF trades. Look elsewhere if you want to trade other securities or use more complex investment research tools.
Deposit up to $3,500/day with your Canadian Visa or Interac Debit card
$1,000 minimum deposit
$5,000 minimum investment for bonds and GICs
No fractional share trading
Consider Questrade if you want to cut down on fees and take the lead on managing your investments. Look elsewhere if you don't have $1,000 upfront to open an account.
Trade 100+ Canadian and US ETFs with no trading fees
$0 minimum deposit
If you're 18-30 years old and set up recurring deposits of $50+ per month, pay just $7.75 per trade and enjoy no quarterly account fee
Pay $15/quarter per registered USD account
Pay $25/quarter unless your balance is below $25,000 or you make 2+ trades quarterly (doesn't apply to new or young investors)
Many reports of performance issues with the mobile app
Consider Qtrade Direct InvestingTM if you want to trade a variety of securities on a user-friendly platform. Look elsewhere if you want fee-free stock trades or access to a wide range of advanced research tools.
Asset Types
Stocks Bonds Options Mutual Funds ETFs GICs
Minimum Age
18
Stock Trading Fee
$6.95 - $8.75
Option Trading Fee
$6.95 - $8.75 + $1.25 per contract
Account Fee
$0 if conditions met, otherwise $25/quarter
Inactivity Fee
$0 if conditions met, otherwise $25/quarter
ETF Transaction Cost
$0 - $8.75
How do I sign up with one of these services?
If you want to sign up for an account with any of the services listed above, you’ll just need to follow the steps below:
Use the online application to provide personal information like your name, email address, proof of ID and relevant documents.
Review and submit your application.
Get verified and load funds into your account to start trading.
Robinhood is a popular US-based app that will hopefully make its way to Canada soon. That said, there are several alternative trading apps that you can consider while you wait for that time to arrive. These apps come with low fees and zero commissions for certain trades. Find out more about Canadian alternatives to Robinhood, and sign up today to start investing.
It's not clear when Robinhood will move to Canada since it's currently only licensed to sell securities in the US. That said, there are several suitable alternatives to this trading platform that are currently available for you to take advantage of in Canada. These include Wealthsimple, Questrade and Virtual Brokers.
The trading platform that's most similar to Robinhood is Wealthsimple. This is because it offers free trades for stocks and ETFs. You also won't need a minimum balance to get started.
You may be able to download the app if you have your Google Play or App Store settings set to the US. That said, you won't be able to create an account unless you're a US resident.
Robinhood makes money from its premium subscription service, which gives users additional features. Robinhood also gets revenue by charging fees for miscellaneous services, earning interest on margin accounts, lending securities and depositing uninvested broker cash into interest-bearing accounts.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
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