Are you an investor looking for the best platform to trade on? Do you want to leverage technology in your investment strategy for more efficiency and accuracy? Then you should definitely find a suitable online investing platform to help you do that.
Investing simplified
Alinea and Robinhood are two among many other online investing platforms available in the market. By providing investors with investment apps, Alinea and Robinhood make it possible to invest on the go- that is fast, easily, and conveniently.
Both Alinea and Robinhood also charge zero commission on stock and ETF investments . This helps to maximize benefits for investors by making it easier to start investing and reducing the costs of trading.
Differences between Alinea and Robinhood
There are certain key characteristics that distinguish Alinea and Robinhood. These differences are concentrated around the fundamental character of each online investing platform.
1) Firstly, Robinhood offers decent brokerage services as far as trading of stocks and crypto goes. However, accurate information is vital for successful investing and Robinhood lacks in that.
This is because Robinhood does not provide relatable and good educational resources that investors can use. On the other hand, Alinea satisfactorily caters to the need for educational resources for investors on the platform.
Young investors can sharpen their knowledge on investments through bite-sized insights. Presented in a simple, straightforward manner, these insights are accurate and easily digestible.
Hence, investors are educated in all relevant aspects of investment on Alinea. Robinhood lacks this simple but vital element hence making Alinea more preferable for novice investors.
2) Secondly, Robinhood does provide investors with a convenient technological solution for investing. However, it does not have a specific target audience. Rather, Robinhood is designed for general use by all investors.
In stark contrast, Alinea is an online investing platform that specifically targets the young demographic. As outlined in Alinea's website, the platform's mission is "changing the way the next gen invests."
Therefore, unlike Robinhood, everything on the Alinea platform is tailored to suit the needs of the young generation. From the app's user interface and graphics to its bite-sized insights, fun and social investing, Alinea fully embodies the spirit of youth.
It allows young investors to customize their experience with the app including the theme and layout. The social investing feature makes investing so much fun as it fuses the interesting aspects of social media with the utility of an investment app.
As such, young investors can view and share each other's investment activity. This helps them to learn more from one another while keeping the whole process vibrant and very enjoyable. This is a feature that Robinhood does not necessarily provide.
3) Thirdly, Alinea is significantly more considerate to the financial security of young investors than Robinhood. This is because it provides investors with an efficient way of minimizing risk using "Playlists."Playlistsare simply "baskets" of various investments (stocks, ETFs, crypto...).
Alinea users can create playlists by selecting the companies they want to invest in based on the bite-sized insights Alinea provides. This way, users are able to spread risk and avoid making losses on their investment on single stocks.
4) Fourthly, at Alinea, every decision is made with investors’ best interest in mind. That is why Alinea does not route orders to any market makers in return for profit through payment for order flow (PFOF). On the other hand, Robinhood acts as a broker for market makers and directs orders to them. This is dangerous as an investor can be directed to platforms that are detrimental to their financial goals.
5) Lastly, Alinea respects investors’ data privacy rights more than Robinhood does. Alinea does NOT do Payment for Order Flow (PFOF). Robinhood blatantly disregards its users’ privacy by selling their market data to companies like Citadel who stand to profit from it. On the other hand, Alinea keeps users’ market data private and does not share it with any individual or corporation
Conclusion
Alinea and Robinhood are both great online investing platforms, however, Alinea is designed to suit the specific, modern investing needs of the young investor and makes investing less intimidating and more social, safe, and educational. We are really built by those who have been left behind.
(i) Disclaimer
The Content is for informational purposes only, you should not consider any such information or other material as investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsem*nt, or offer by Alinea Invest or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction. When investing your capital is at risk.
Eve Halimi is the Co-Founder and Co-CEO of Alinea, an investing app created for Gen Z’s which allows users to grow their money by investing in what matters to them. She gained extensive experience empowering brands to build better digital experiences working in strategy at Contentsquare, a growth stage data analytics startup, bringing that expertise to Alinea. Prior to creating Alinea, Halimi held multiple positions at financial institutions and hedge funds such as Goldman Sachs and Boussard & Gavaudan. She founded her first community-based application at the age of 15. Alinea is backed by Y Combinator, Harvard, Kima, Goodwater and many other leading investors.
