Robinhood Canada: Top Online Investing App & Alternatives in Canada

Robinhood Canada Review Rating: 4.5/5

Robinhood is currently a top-notch trading platform in the US with more than 31 million users.

This popular broker is attracting beginners, intermediate and seasoned investors, attracting it blame for the recent market upswings and day trading increase in the US. 

But what is the catch with Robinhood? Can Canadian investors also trade with Robinhood? If not, what is the equivalent of Robinhood in Canada?

Keep reading to find answers to these questions and more.

Is Robinhood Available in Canada in 2021?

No, Robinhood is not available in Canada as of 2021. In a tweet some years back they mentioned they may come to Canada in the future, but the company is currently only licensed to sell securities within the US.

Consequently, only US citizens or permanent residents can use the app in supported countries. They can use Robinhood in any part of the world except in Iran, Syria, Crimea (Ukraine) and North Korea.

What is Robinhood?

Robinhood is a commission-free trading app in the US.

It was established by Vladimir Tenev and Baiju Bhatt in 2013 to democratize the finance sector of the US by making trading affordable and accessible to all.

Investors can trade the securities of their choice through the Robinhood app or website.

As of the time of writing this review, investors can only trade ETFs, stocks, options, or cryptocurrencies on Robinhood.

Thus, investors wanting to trade bonds of mutual funds have to look for other trading platforms.

Furthermore, Robinhood Canada doesn’t support registered accounts. So investors looking for this type of account have to look elsewhere too.

It is important to note that the major reason behind Robinhood’s popularity lies in its commission-free trading feature and low fees.

This makes it cost-effective for investors looking for ways to build their portfolios with less.

Also, whether you’re a beginner or seasoned investor, you will find the Robinhood interface easy to use.

Finally, Robinhood Canada doesn’t require a minimum balance for trade. So you can start trading with as low as $1.

Is Robinhood Safe?

Robinhood is absolutely safe. This broker protects your deposit up to $250,000 in cash and $500,000 for securities because of its membership with the Securities Investor Protection Corporation (SIPC).

Furthermore, the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) regulate Robinhood activities.

Overall, the Robinhood app is safe for trading stocks, ETFs, options and cryptocurrencies.

What are the Features of Robinhood App Canada?

Here are the top features of this great trading platform:

1. Commission-Free Trading

As mentioned earlier, Robinhood is a leading commission-free trading platform in the US.

So you can trade ETFs, stocks, options and cryptocurrencies without commission charges on Robinhood. This explains why many investors are attracted to the platform.

2. High-Yield Savings

You can enjoy a 0.30% Annual Percentage Yield (APY) on your uninvested cash with a Robinhood savings account.

This account has a debit card and is insured by the Federal Deposit Insurance Corporation (FDIC).

3. No-Minimum Balance

You can start trading with as low as $1 on the Robinhood platform because there’s no minimum balance.

With this option, you can trade at your own pace and build a portfolio that suits your financial goals and budget.

4. Research Reports and Analysis

Get real-time reports and data on the performance of securities with the Robinhood Gold product.

With a $5 initial monthly fee, this product also allows you to trade margin, make large deposits and access your funds fast.

5. Fractional Shares

You can use Robinhood to buy fractional shares if you don’t have enough cash to invest in costly securities.

Buying fractional shares is a cost-effective way of building your portfolio gradually while getting returns.

6. Ease of Use

Robinhood has a user-friendly interface that makes it easy to use by both beginner and seasoned investors.

So whether you’re using an Android or iOS device, you will have a seamless experience using the Robinhood app to trade.

Robinhood Pros and Cons

Pros

  • Commission-Free Trading: You will save more on fees by trading any security without a commission on the Robinhood platform.
  • User-Friendly Interface: As mentioned earlier, Robinhood has a user-friendly interface both on the web platform and mobile app.
  • No Minimum Balance Requirement: With the Robinhood app, you don’t need to worry about minimum balance. You can start trading with as low as $1 in your account.
  • Fractional Shares: Trade at your own pace by buying fractional shares to build your portfolio gradually while receiving returns.
  • High-Yield Savings: Maximize your savings account with 0.30% APY on your uninvested cash with Robinhood savings account.

Cons

  • Taxable Accounts: As of the time of writing this review, Robinhood has only taxable accounts. So if you’re looking for non-taxable accounts such as retirement accounts, you have to look elsewhere.
  • No Mutual Funds and Bonds: If you want to trade mutual funds and bonds, you have to look for other means. Robinhood only supports stocks, ETFs, options and cryptocurrency trading at the moment.
  • Limited Availability: As of the time of writing this review, Robinhood is only available to US investors. Canadian investors and other investors have to look for alternatives.
  • Poor Customer Support: There are many reports from users about poor customer support from Robinhood.

Who Can Use Robinhood in Canada?

Only US citizens or permanent residents can use the Robinhood in Canada. However, Robinhood has the following requirements for eligibility:

In addition to being a US citizen or permanent resident, the person must have:

  • A legal U.S. residential address.
  • A valid U.S. Social Security Number

However, not every US investor that meets the above requirements may find Robinhood suitable.

So the Robinhood app is more suitable to investors who are:

  • Looking for a commission-free trading platform
  • Comfortable with taxable accounts
  • Looking for margin accounts
  • Interested in stock, ETF, options and cryptocurrency trading
  • Comfortable with mobile trading

How Does Robinhood Make Money?

Robinhood has several ways of making money while offering a commission-free trading platform. The major ways that Robinhood makes money are as follows:

  • Regulatory trading fees
  • Automated Customer Account Transfer Service (ACATS)
  • Domestic overnight mail
  • International overnight mail
  • Domestic overnight check delivery

When Will Robinhood Be Available in Canada?

There’s no official information on when Robinhood will be available in Canada. However, in an official tweet some years ago, they hinted they might come to Canada in the future.

How I Rated Robinhood

Here’s how I rated Robinhood Trading Canada 4.5 out of five stars:

FeatureRating
Fees*****
Account Offering****
Safety**** (4.5)
Products*** (3.5)
Ease of Use**** (4.5)
Customer Service***
1. Fees

Robinhood is one of the leading online brokerages in the US that has no commission and trading fees.

2. Account Offering

This commission-free trading platform is only limited to registered accounts. Investors looking for unregistered accounts have to look elsewhere.

3. Safety

Robinhood is safe to use for investors with different risk tolerance profiles. Deposits on this platform are also insured by the Securities Investor Protection Corporation (SIPC)

4. Products

This brokerage has limited product offerings. It has no mutual funds and bonds as of the time of writing this review. Investors can only trade stocks, ETFs, options and cryptocurrencies on the platform.

5. Ease of Use

Robinhood has an intuitive interface that is easy to use by beginners and seasoned investors. It can be accessed through its website or mobile app.

6. Customer Service

There are many complaints from users about the unsatisfactory customer service of Robinhood. So investors looking for immediate help while trading may find Robinhood disgusting.

10 Top Robinhood Alternatives in Canada?

Even though there’s no Robinhood Canada, you can use similar trading platforms to execute your trade in Canada. The top Robinhood alternatives in Canada are:

1. Wealthsimple Trade

Wealthsimple Trade is a leading Canadian commission-free platform for trading ETFs and stocks.

Like Robinhood, this Wealthsimple product doesn’t also have a minimum balance for trading. So with as low as $1, you can start trading on Wealthsimple Trade.

Furthermore, Wealthsimple Trade doesn’t support mutual funds, options and bonds trade.

But like Robinhood, you can also trade cryptocurrency on Wealthsimple Trade.

Pros

  • Commission-free trading platform
  • Easy to use
  • Registered and unregistered accounts
  • No minimum account balance

Cons

  • Limited securities
  • Mobil-only app
  • Currency conversion fee
  • Limited research options

Click here to learn more about Wealthsimple Trade.

2. Questrade

Questrade is one of the leading brokerages in Canada that has no commission on ETF purchases.

However, fees apply for ETFs, stocks, bonds, mutual funds, and other trades.

Unlike Robinhood and Wealthsimple Trade, Questrade has a minimum balance requirement of $1000.

But like Wealthsimple Trade, Questrade also has registered and unregistered accounts.

Pros

  • Free ETF purchases
  • Low account management fees
  • Registered and non-registered accounts

Cons

  • Fees for ETFs, stocks, bonds and other trades.
  • $1000 minimum account balance.

To learn more about Questrade’s trading platform, click here.

3. BMO Insvestorline

As the discount brokerage arm of Bank of Montreal (BMO) Financial Group, BMO InvestorLine is one of the top alternatives of Robinhood Canada.

Besides offering access to other BMO online services, BMO InvestorLine also allows you to access representatives in-branch.

BMO InvestorLine recently eliminated commissions from their more than 80 ETFs trading. This means cost-effective trading for investors.

Moreover, BMO InvestorLine typically offers more promotions than any other bank-owned brokerage in Canada.

Pros

  • Commission-free trading of 80+ ETFs
  • Comprehensive investing platform 
  • Top-notch research tools 
  • No minimum account balance requirement

Cons

  • Higher fees compared to robo advisors
  • $9.95 per EFT and stock transaction  
  • Fees for registered and non-registered accounts that fall below $25,000 and $15,000.

4. TD GoalAssist

If you’re a beginner investor and are looking to get your feet wet, the TD GoalAssist App may be ideal for you. 

Owned by TD Direct Investing, TD GoaoAssist charges zero commission on trading TD ETFs with an intuitive interface for beginners.

With this app, you can set your investing goals and monitor your progress while training to succeed.

Pros

  • No commission on trading TD ETFs
  • Beginner-friendly
  • Learning materials

Cons

  • $9.99 flat fee for stocks trading 
  • Only TD ETFs are available 
  • Limited accounts 
  • Limited products 
  • Currency conversion fees

5. Moka

Moka app (formerly Mylo) is your vehicle to build your portfolio and savings account while sleeping.  

This app automates your investment and savings, helping you focus on what matters. With the Moka app, your purchases are rounded up automatically and invested. 

However, you can’t rely on this app if you’re looking to build a large investing portfolio. 

Pros

  • Automated investing and savings
  • No account minimum
  • Low cost
  • Quick withdrawals
  • Top-notch monthly perks

Cons

  • Few account options
  • Not suitable for large investments

Learn more about Moka. 

6. Qtrade Investor

Qtrade Investor is one of the top alternatives to Robinhood in Canada. In addition to low trading fees, Qtrade is also known for its simplified trading solutions.  

Unlike other investment platforms, Qtrade allows you to invest in the US markets in addition to the Canadian market without commission on ETFs trading.

Even if you’re a beginner, you can get your feet wet on Qtrade by using its demo accounts to build your trading skills. 

Pros

  • Zero commission on ETFs trading
  • Intuitive interface
  • Access to mutual funds commission-free ETFs
  • Access to a demo account and research tools

Cons

  • Doesn’t support credit cards and e-wallets funding  
  • $25 quarterly account maintenance fee
  • Minimum trading of $1,000 for commission-free ETFs trading

7. Interactive Brokers

If you’re an intermediate or seasoned investor, Interactive Brokers (IB) could be your ideal alternative to Robinhood Canada.

For years, IB has been rated the world’s best online brokers by different organizations. This is because of its low trading fees, high liquidity research tools, and broad coverage (135 markets).

From registered to non-registered accounts, IB got you covered on any accounts you need to invest in.

Pros

  • Access to international markets (135)
  • Low exchange rates for CAD deposits.
  • Multiple account types and securities
  • Low trading fees
  • High liquidity

Cons

  • High monthly fees
  • Poor customer service for Canadian investors
  • Tax implications for Canadian investors

8. CIBC Investor’s Edge

CIB Investor’s Edge is the discount brokerage arm of the CIBC Investor Securities, offering Canadians low-cost investment solutions.

I included CIB Investor’s Edge on my list of top Robinhood Canada alternatives because of its competitive commissions and trading fees compared to other banks in Canada. 

From beginner to seasoned investors, CIB Investor’s Edge serves investors of all classes.

Pros

  • Competitive commissions and trading fees compared to other banks in Canada
  • Multiple investment accounts and securities
  • Discounts for students and active traders
  • Free educational resources, analyst reports and research tools

Cons

  • Charges annual account maintenance fee for registered and unregistered accounts 
  • High trading fees compared to robo advisors such Wealthsimple and Questrade. 

9. Scotia iTRADE

Scotia iTRADE is the brokerage arm of one of Canada’s “Big 5” banks, Scotiabank.

If you’re an intermediate or seasoned investor, Scotia iTRADE could be your advanced version of Robinhood Canada. 

In addition to discount commissions for day trading, you also have access to a demo account and market research for improving your trading strategy via Scotia iTRADE.

Consequently, beginner and intermediate investors will also find Scotia iTRADE for cost-effective trading.

Pros

  • Discount commission for day trading
  • Access to research reports
  • Access to demo accounts 

Cons

  • Annual fees for registered and unregistered accounts.
  • High trading fees than robo-advisors such

10. Newton

Newton could be your best alternative to Robinhood Canada if you’re looking to trade cryptocurrency.

With more than 25 cryptocurrencies, Newton charges no fees on deposit, trading and crypto withdrawals.

However, Newton focuses on cryptocurrency, so you can’t trade other securities through it.

Pros

  • Free deposits and crypto withdrawals
  • Zero trading fees
  • Fast deposits via Interac e-Transfer
  • 25+ cryptocurrencies available
  • Low speeds
  • Beginner-friendly

Cons

  • Only cryptocurrencies are available (you can’t trade stocks and ETFs)
  • May be slow when the crypto market surge

Wealthsimple vs Robinhood

Wealthsimple vs Robinhood

From the above comparison, you can see the similarities and differences between Wealthsimple and Robinhood.

As mentioned previously, Robinhood charges no commission on trading any security. The same applies to Wealthsimple.

Since both Wealthsimple and Robinhood don’t have a minimum account balance, it means you can start trading on both platforms with as low as $1. 

So what is the difference between Wealthsimple and Robinhood? 

The major difference between Wealthsimple and Robinhood is availability. While Wealthsimple is available in Canada and the US, Robinhood is only available in the US. 

Consequently, Americans can use Wealthsimple while Canadians can’t use Robinhood.

Furthermore, Wealthsimple offers both registered and unregistered accounts, while Robinhood offers only non-registered accounts.

Questrade vs Robinhood

Questrade vs Robinhood

Questrade is another major alternative to Robinhood Canada because of its competitive offerings.

Unlike Wealthsimple, Questrade has more obvious differences from Robinhood. For example, while Robinhood has no minimum balance requirement, Questrade requires a $1,000 minimum balance. 

Also, while Robinhood doesn’t charge a commission for trading stocks and ETFs, Questrade charges a commission for trading stocks and selling ETFs.  

Like Wealthsimple, Questrade also offers both registered and unregistered accounts, while Robinhood offers only non-registered accounts.

Qtrade vs Robinhood

Qtrade vs Robinhood

Qtrade is another alternative to Robinhood in Canada due to its top-notch offerings.

Like Robinhood, Qtrade also charges no commission on trading ETFs. However, Qtrade requires minimum trading of $1,000 for commission-free ETFs trading.

While Questrade offers both registered and non-registered, Robinhood offers only non-registered accounts. 

Unlike Robinhood, Qtrade charges a $25 quarterly account maintenance fee. This means you will save more on Robinhood than on Qtrade.

However, since Robinhood is not available in Canada yet, you should consider the top Qtrade alternative, Wealthsimple. 

Final Verdict on Robinhood Canada

There’s no Robinhood Canada. But that’s not the end of the world!

As a Canadian, you have several alternatives to Robinhood Canada.

The major ones are Wealthsimple Trade and Questrade. But the overall best trading platform similar to Robinhood Canada is Wealthsimple Trade.

However, if you need help deciding the perfect trading platform for you, don’t hesitate to contact a financial advisor.

Overall, my Robinhood Canada review is positive!

FAQs on Robinhood Canada

Which is Better Webull or Robinhood?

They are all leading trading platforms in the US with similarities and differences.

But Webull is not suitable for beginner investors. It is ideal for intermediate and experienced investors.

On the other hand, Robinhood is ideal for novice investors because of its intuitive interface and features.

However, to make the best decision, click here to learn more about Webull.

Can You Open Robinhood Account in Canada?

You can’t open a Robinhood account in Canada. However, you can only access the Robinhood website or download the Robinhood app on your Android or iOS for research and learning purposes.

How Can I Get the Robinhood App in Canada?

To get the Robinhood app in Canada, all you need is to download it from Google Play Store or Apple Store.

But remember, you can’t use it to trade in Canada.

If you have more questions about their Robinhood Canada review, let me know in the comment section.

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