ROBINHOOD Markets’s commission free trading is now available throughout the United Kingdom – though the company said an effort to add margin lending to the offering is on pause.
UK customers can now access more than 6,000 US-listed stocks using the Robinhood app, the financial technology giant said. It had opened a waitlist for users to get switched on to the service late last year.
The Silicon Valley-headquartered firm is also planning to introduce margin investing to UK customers, which would allow them to borrow money from Robinhood to purchase the securities. That plan is on hold “as we continue to discuss with the regulator”, a spokesperson said.
Robinhood has been expanding into new markets after trading activity waned following a pandemic-induced boom that had inflated enthusiasm for meme stocks and boosted Robinhood’s revenues. The brokerage has also expanded into retirement, credit cards, crypto and cash accounts.
“Today’s general availability marks the start of a new chapter for Robinhood, and we are excited to continue challenging the status quo by delivering more local products and services that resonate with our customers and meet their needs,” Jordan Sinclair, Robinhood UK’s president, said.
Amazon, Apple
Some of the popular holdings among customers over the last few months include Apple, Amazon.com, and Nvidia, according to Robinhood.
The brokerage is offering UK customers 5 per cent interest on uninvested cash, trading outside of market hours, zero trading commission and no foreign exchange fees on trades. The company said on Monday (Mar 18) it is also launching rewards and referral programmes for its UK base.
Robinhood already offers margin investing to eligible US customers, and charges a standard margin interest rate of 12 per cent, according to its website.
The pioneer of commission-free trading apps has had the UK in its sights since 2019. It joins a crowded market, competing with locals such as Revolut and Freetrade. The company posted a jump in net revenue in the fourth quarter, helped by its global expansion and deposit growth. BLOOMBERG
