How trustworthy are investment apps like Charles Schwab and Robinhood?
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.
Do your research to make sure you're choosing an investing app you can trust. The Better Business Bureau's ratings incorporate user complaint data and company history. Many brokerages have A ratings with the BBB, but a handful of apps fare worse.
In May, Robinhood faced user retaliation due to a cryptocurrency trading outage that occurred while dogecoin prices skyrocketed. While the investment app fully restored crypto trading, its server issues prevented many users from placing dogecoin orders.
In addition, when Gamestop (GME) and 바이 낸스 풀 several other Reddit-hyped stocks soared earlier in 2021, investment apps including Robinhood came under fire for temporarily halting stock purchases. This news also put the business practices of popular investing apps , including the compensation model called payment for order flow, under the magnifying glass.
If you're looking for signs that you can trust an investment app with your money, research is your friend. You can generally find information about an app's customer complaint history, advertising issues, and other business information by viewing its Better Business Bureau profile.
Below, you can see how investing apps, brokerages, and automated investment advisors stack up when it comes to each platform's Better Business Bureau rating. But BBB ratings aren't the only thing you should take into consideration when searching for an investment app; it's also wise to do your own research and look for any notable news about the company you're looking to park your money with. And when in doubt, it could make sense to consult a financial advisor or financial planner.
How trustworthy are investing apps and brokerages?
Investing apps let you set up and manage accounts on your own. They typically offer self-directed trading accounts, retirement accounts, and custodial accounts. But cryptocurrency exchanges typically offer different features.
In some instances, online brokerages also provide an automated investing account option. But not all automated advisors offer brokerage services. And crypto apps typically diverge from both. To draw a clearer distinction, we separated brokerages, automated or online advisors, and crypto exchanges into three separate tables.
Below, you can see how investing apps and brokerages stack up when it comes to their Better Business Bureau rating:
Brokerage/investment app Better Business Bureau rating Ally Invest F Charles Schwab A+ E*TRADE NR Fidelity Investments A+ Firstrade A- Groundfloor A+ Interactive Brokers A+ Merrill Edge A+ Robinhood F Roofstock A- SoFi A+ Stash F TD Ameritrade A TradeStation A+ Vanguard A- Webull F.
Keep reading for a closer look at each investment app's complaint history.
Ally Invest provides self-directed trading, automated investing, retirement savings accounts, binance aunoa ma le faʻamaonia and forex trading. The investment app has closed more than 60 complaints in the last three years and just over 50 complaints in the last 12 months. The company has an F rating from the BBB.
Schwab offers a wide array of investment products, including commission-free brokerage accounts, automated investing accounts, and retirement accounts. It has closed more than 190 complaints in the last three years and roughly 100 complaints in the last 12 months. Charles Schwab has an A+ rating from the BBB.
E*TRADE offers commission-free brokerage accounts, automated investing accounts, 1099-k بائننس
IRAs, and other wealth-building products. The company closed more than 140 complaints in the last 12 months. The BBB gives it an NR ("No rating").
Fidelity is an online investment app offering brokerage accounts, retirement accounts, college savings plans, cash management accounts, blog de binance and more. The company has closed more than 590 complaints in the last three years and just over 360 complaints in the last 12 months, according to BBB data. Fidelity has an A+ rating with the BBB.
Firstrade is a discount brokerage offering investing, custodial, retirement, and cash management accounts. It has closed three complaints in the last three years and two complaints in the last 12 months. The BBB gives it an A- rating.
Unlike many real estate investing platforms, Groundfloor offers fractional real estate debt investments through Limited Recourse Obligations (LROs) and notes. The company has closed one complaint in the last three years and no complaints in the last 12 months. It has an A+ rating from the BBB.
Interactive Brokers offers self-directed trading, automated investing, and advanced trading resources for experienced investors. The company has closed more than 80 complaints in the last three years and just over 50 complaints in the last 12 months. It has a rating of A+ from the BBB.
Among Merrill Edge's offerings are active accounts, automated investing accounts, education savings accounts, and pregled binance sigurnosti IRAs. The company has closed more than 6,400 complaints in the last three years and just over 2,700 complaints in the last 12 months. It has an A+ rating with the BBB.
Robinhood is a commission-free brokerage providing stock, option, ETF, binance tsarin dubawa and cryptocurrency trades. The investment app closed more than 2,700 complaints in the last three years and nearly 2,050 complaints in the last 12 months. It has an F rating from the BBB.
Roofstock is an online real estate marketplace that lets you buy or sell single-family rental properties. In addition to its D+ bureau rating, the company has closed two complaints in the last three years and one complaint in the last year.
SoFi Invest offers fee-free active trading, automated investing, cryptocurrency trading, human advisor access, and more. Its BBB record shows that it closed more than 260 complaints in the last three years and close to 150 complaints in the last 12 months. It has an A+ rating.
Stash specializes in investing accounts, fractional shares, and retirement and custodial accounts. The company has settled more than 640 complaints in the last three years and nearly 330 complaints in the last 12 months. It has a BBB rating of F.
Though acquired by Schwab, TD Ameritrade offers commission-free trading, automated investing and more. The company has closed more than 380 complaints in the last three years and just over 200 complaints in the last year. It has an A rating with the BBB.
TradeStation is an online brokerage offering taxable brokerage accounts, IRAs, and entity accounts. It has closed 40 complaints in the last three years and more than 10 complaints in the last 12 months. The BBB has given it an A+ rating.
Recognized as one of the pioneers of the discount brokerage business, Vanguard offers accounts for just about every type of investor. It has closed more than 90 complaints in the past 12 months. The BBB gives it an A- rating.
Webull offers commission-free trading, retirement investing, cryptocurrency trading, and more. In addition to its F rating, BBB data also shows that the company has closed more than 160 complaints in the last three years and close to 140 complaints in the last 12 months.
How trustworthy are automated investing advisors?
Automated advisors are investment apps that handle all of your accounts for you.