Robinhood became a household name in the brokerage business for pioneering commission-free trading.
But users continue to love it for more than that. Its high-yield brokerage cash account, multi-asset access, fractional share trading, mobile-first simplicity, and clean interface make it a darling of many traders.
While Robinhood is not available in the UAE yet, it is fortunate that many alternatives in the UAE give traders the same experience (and more).
In this article, we will highlight five of these alternatives.
1.Sarwa: Best for local access to the US market
Sarwa is a UAE-based platform that was created to meet the needs of local UAE traders.
It is regulated in the Abu Dhabi Global Markets by the Financial Services Regulatory Authority (FSRA), and provides access to US stocks, US ETFs, stock options, and cryptocurrencies.
How Sarwa compares with Robinhood
Sarwa provides the following, in common with Robinhood:
- Fractional investing: Users can buy a fraction of a share of a stock or ETF on Sarwa.
- Multi-asset access: Sarwa provides access to stocks, ETFs, stock options, and cryptocurrencies.
- Accessible and easy-to-use platform: Sarwa has a clean interface with easy onboarding and multiple deposit and withdrawal methods.
- High-yield cash account: Users still learning how to trade stocks in the UAE can pack their cash into Sarwa Save until they are ready to enter the market.
Sarwa also offers certain advantages that make some traders consider it as an alternative to foreign platforms like Robinhood:
- Local AED deposits and withdrawals: Users can transfer money between their local UAE bank accounts and their brokerage accounts for free.
- Halal trading: Sarwa has a stock screener that helps traders identify stocks that qualify as halal.
- Contextual educational resources: Sarwa also provides educational resources that UAE-based traders can connect to. In addition to learning how to conduct stock market fundamental and technical analysis, for example, they can also learn how to build wealth in the UAE as an expat.
We should also note some things Robinhood has that Sarwa doesn’t:
- Margin: You can’t purchase stocks and ETFs with margin on Sarwa.
- Securities lending: You can’t lend your stocks to earn additional income or borrow stocks from other users.
Who is Sarwa best for?
Sarwa is best for beginner traders who want a local platform that caters to their needs.
2.Interactive Brokers (IBKR): Best for advanced technical analysis
Interactive Brokers is a global trading platform that offers access to stocks, ETFs, bonds, mutual funds, cryptocurrencies, currencies, and futures across more than 170 market centres.
It is regulated in Dubai by the Dubai Financial Services Authority (DFSA).
How Interactive Brokers compares to Robinhood
Interactive Brokers provides these features in common with Robinhood.
- Fractional shares
- Low commission: Stock trading is free on IBKR Lite accounts and as low as $0.0005 to $0.0035 per share on IBKR Pro accounts.
- Multi-asset access
- High-yield cash account
However, with Interactive Brokers, you get other advantages over Robinhood:
- Professional trading tools: IBKR’s Trader Workstation is popular for its advanced charting tools.
- More assets: Users have access to assets like futures, bonds, and forex that are not available on Robinhood.
- Institutional-grade execution: IBKR uses smart routing to seek the best prices across 170 global markets.
On the other hand, Robinhood has the following advantages over IBKR:
- Simpler interface
- Easier onboarding
- Beginner-friendly platforms
Who is Interactive Brokers best for?
IBKR is best for advanced traders who need professional-level tools.
3.eToro: Best for social trading
eToro is a well-known trading platform that became popular for its copy trading feature.
It is regulated in the UAE by the FRSA and provides access to stocks, ETFs, cryptocurrencies, commodities, and CFDs.
How eToro compares with Robinhood
Like Robinhood, eToro provides:
- Low commission trading: ETFs are commission-free. For stocks, commission is a flat $1 per trade.
- Fractional shares
- Intuitive mobile platform
- Multi-asset access
- High-interest cash account
eToro also has certain features that make users prefer it to a platform like Robinhood:
- Trading community: eToro has a social community where traders can interact.
- Social trading: Users can also copy the trades of more successful traders.
- CFDs: eToro provides access to CFDs on various asset classes.
On the other hand, Robinhood edges eToro in the following ways:
- Options strategies: Robinhood provides more option legs (four to two).
- More order types
Who is eToro best for?
eToro is best for beginner traders who want to explore social trading
4.XTB: Best for CFD trading
XTB is regulated in the UAE by the DFSA.
Its users have access to stocks, ETFs, and CFDs on forex, indices, commodities, and cryptocurrencies.
How XTB compares to Robinhood
XTB provides many of the features that Robinhood is known for:
- Multi-asset access
- Mobile-first platform
- Quick onboarding: Users can complete the process in 15 minutes
- Low-cost trading: Stocks and CFDs are commission-free
It also goes beyond it to offer the following:
- More assets: XTB is popular for its large CFD offerings
- Advanced charting tools: XTB also offers technical analysis tools appropriate for experienced traders.
However, Robinhood has some advantages:
- Direct crypto ownership: XTB only offers CFDs on cryptocurrencies.
- Cash account: XTB’s cash account is only available for UK residents.
Who is XTB best for?
XTB is best for CFD traders who need more advanced charting tools.
5.Baraka: Best for beginner traders with simple strategies
Baraka is a UAE-based trading platform that offers access to stocks, ETFs, gold, options, and bonds. It is regulated by the DFSA.
How Baraka compares to Robinhood
Baraka has the following features in common with Robinhood:
- Fractional trading
- Mobile-first design
- Low-cost trading: There is a flat fee of $1 for all US stocks and ETFs. Premium account holders also enjoy 12 free trades monthly.
Baraka also appeals to local traders with the following features:
- Halal screener: Users can identify Sharia-compliant stocks and ETFs.
- Local AED deposits and withdrawals
However, it does not make up for some of what Robinhood provides:
- Margin trading
- Securities lending
Who is Baraka best for?
Baraka is best for new traders.