How trustworthy are investment apps like Charles Schwab and Robinhood?
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- 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.
- See Insider's guide to the best investment apps for beginners »
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Robinhood is again facing user retaliation due to a cryptocurrency trading outage that occurred while Dogecoin prices skyrocketed earlier in May. While the investment app has now fully restored crypto trading, its server issues prevented many users from placing Dogecoin orders.
When Gamestop (GME) and 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 their 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 your financial advisor or financial planner.
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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 | D- |
| Charles Schwab | A+ |
| E*TRADE | F |
| 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
Ally Invest provides self-directed trading, automated investing, retirement savings accounts, and forex trading. The investment app has closed more than 40 complaints in the last three years and nearly 40 complaints in the last 12 months. The company has a D- rating from the BBB.
Charles Schwab
Schwab offers a wide array of investment products, including commission-free brokerage accounts, automated investing accounts, and retirement accounts. It has closed more than 160 complaints in the last three years and nearly 100 complaints in the last 12 months. Charles Schwab has an A+ rating from the BBB.
E*TRADE
E*TRADE offers commission-free brokerage accounts, automated investing accounts, IRAs, and other wealth-building products. The company closed more than 150 complaints in the last 12 months. The BBB gives it an F rating.
Fidelity Investments
Fidelity is an online investment app offering brokerage accounts, retirement accounts, college savings plans, cash management accounts, and more. The company has closed nearly 510 complaints in the last three years and more than 300 complaints in the last 12 months, according to BBB data. That large number of complaints is probably a main reason for Fidelity's rating of A+ with the BBB.
Firstrade
Firstrade is a discount brokerage offering investing, custodial, retirement, and cash management accounts. It has closed two complaints in the last three years and one complaint in the last 12 months. The BBB gives it an A rating.
Groundfloor
Unlike other real estate investing platforms, Groundfloor offers fractional real estate debt investments through Limited Recourse Obligations (LROs) and notes. The company has closed three complaints in the last three years and no complaints in the last 12 months. It has an A+ rating from the BBB.
Interactive Brokers
Interactive Brokers offers more advanced trading resources for experienced investors. The company has closed more than 80 complaints in the last three years and nearly 60 complaints in the last 12 months, and it has a rating of A+ from the BBB.
Merrill Edge
Among Merrill Edge's offerings are active accounts, automated investing accounts, education savings accounts, and IRAs. The company has closed nearly 5,910 complaints in the last three years and more than 2,230 complaints in the last 12 months. It has an A+ rating with the BBB.
Robinhood
Robinhood is a commission-free brokerage providing stock, option, ETF, and cryptocurrency trades. The investment app closed close to 1,530 complaints in the last three years and nearly 1,220 complaints in the last 12 months. It has an F rating from the BBB.
Roofstock
Roofstock is an online real estate marketplace that lets you buy or sell single-family rental properties. In addition to its A- bureau rating, the company has closed one complaint in the last three years and no complaints in the last year.
SoFi
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 170 complaints in the last three years and nearly 70 complaints in the last 12 months, and it has an A+ rating.
Stash
Stash specializes in investing accounts, fractional shares, and retirement and custodial accounts. The company has settled more than 500 complaints in the last three years and more than 280 complaints in the last 12 months. It has a BBB rating of F.
TD Ameritrade
Though recently acquired by Schwab, TD Ameritrade offers commission-free trading, automated investing and more. The company has closed more than 350 complaints in the last three years and close to 220 complaints in the last year. It has an A rating with the BBB.
TradeStation
TradeStation is an online brokerage offering taxable brokerage accounts, IRAs, and entity accounts. It has closed 40 complaints in the last three years and 26 complaints in the last 12 months. The BBB has given it an A+ rating.
Vanguard
Known as one of the pioneers of the discount brokerage business, Vanguard offers accounts for just about every type of investor. It has closed nearly 70 complaints in the past 12 months. The BBB gives it an A- rating.
Webull
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 nearly 140 complaints in the last three years and more than 120 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. Also known as robo-advice, these types of apps are best for beginner or hands-off investors who want professional guidance with their investments. We've also included Facet Wealth, a virtual financial planning firm, in this table.
| Automated/online advisor | Better Business Bureau rating |
| Acorns | A+ |
| Blooom | A |
| DiversyFund | A+ |
| Ellevest | B |
| Facet Wealth | A+ |
| Fundrise | A- |
Acorns
Acorns is a micro-investing app that's best for hands-off investors and retirement savers. BBB data shows that it has closed nearly 150 complaints in the last three years and more than 90 complaints in the last 12 months. Acorns has an A+ BBB rating.
Blooom
Blooom provides automated investment management for IRAs, 401(k)s, and other employer-sponsored retirement plans. It has closed one complaint in the last three years and zero complaints in the last 12 months, and it has an A rating with the BBB.
DiversyFund
DiversyFund is a real estate investment app that offers private commercial real estate investments for nonaccredited investors. It has an A+ rating with the BBB, and it has closed close to 10 complaints in the last three years and five complaints in the last 12 months.
Ellevest
Ellevest is an automated investment app that handles your investment and retirement accounts for you. It has closed 16 complaints in the last three years and six complaints in the last 12 months. It has a B rating with the BBB.
Facet Wealth
Facet Wealth is a virtual financial planning firm that offers an array of wealth management services. BBB data shows that it closed two complaints in the last three years and one complaint in the last one 12 months. Facet has an A+ BBB rating.
Fundrise
Fundrise is a real estate crowdfunding investment app that offers automated investments in US commercial real estate investment trusts (REITs). BBB data shows that it closed more than 55 complaints in the last three years and 33 complaints in the last 12 months, and the BBB gives Fundrise an A- rating.
How trustworthy are cryptocurrency exchanges?
Cryptocurrency exchanges are online brokerages for virtual assets like bitcoin, dogecoin, and others. These investment apps are generally best for active traders who can tolerate the volatility that often comes with crypto trading.
But thanks to features like staking (staking allows you to earn interest for simply holding an asset for a set period of time), passive investors also have a place in the crypto world. See how the following crypto apps rank in trustworthiness.
| Cryptocurrency exchange | Better Business Bureau rating |
| Binance.US | NR |
| CEX.IO | NR |
| Coinbase | D- |
| eToro USA | C |
| Gemini | NR |
| Kraken | F |
Binance.US
Binance.US offers more than 50 virtual assets, with features like staking, over-the-counter (OTC) trading, institutional trading, storage, and more. It has settled nearly 170 complaints in the last 12 months. The BBB has given Binance.US an NR ("No rating").
CEX.IO
Formed in 2013, CEX.IO is a global cryptocurrency exchange supporting 99% of countries around the world. The exchange has closed six complaints in the past 12 months. It also has an NR status from the BBB.
Coinbase
Coinbase is a popular cryptocurrency exchange offering more than 50 assets, including bitcoin, dogecoin, ethereum, and others. The company has closed more than 1,000 complaints in the last 12 months. Coinbase has a D- rating with the BBB.
eToro USA
The eToro USA crypto exchange offers more than 15 cryptocurrencies, with a range of social trading features for novice crypto traders. It has closed more than 130 complaints in the last 12 months. The BBB has given eToro a C rating.
Gemini
Gemini is a security-focused cryptocurrency exchange offering a wide range of services for individual and institutions. In the past 12 months, the exchange has settled more than 560 complaints. It currently has a "NR" status with the BBB.
Kraken
Kraken is a popular cryptocurrency exchange offering more than 50 virtual assets, with support for traders in more than 190 countries. The business has closed more than 10 complaints in the last 12 months, and the BBB gives it an F rating.
How are Better Business Bureau ratings assigned?
The BBB assess a number of factors when assigning its ratings. While it primarily focuses on how well a company interacts with its customers, its ratings also take into account the following:
- Type of business
- Time in business
- Complaint history
- Licensing and/or government actions
- Advertising issues
The BBB also says on its website that its ratings don't guarantee a company's performance or reliability. This is why it's crucial that you conduct your own research before making a final decision about which investment app (or any other personal finance product) to use.
Should you choose an app that has a bad rating?
As mentioned above, BBB ratings don't guarantee that an investment app or any other company will meet or exceed your expectations. The bureau's ratings primarily evaluate a company's complaint history and customer interaction track record.
Therefore, it's important that you take time to do additional research about prospective investment apps. The BBB's findings can be helpful in determining whether an investment app is trustworth, but also consider things like fee transparency and whether it's registered with the US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.
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