Robinhood is set to launch commission-free stock trading in the UK in 2024, offering 24/7 access to over 6,000 US-listed stocks. The platform also plans to introduce cryptocurrency trading in the EU in the coming weeks.
Robinhood, the US-based fintech company that revolutionized the stock market during the pandemic, is bringing its commission-free trading model to the UK.
The platform, which is known for its crypto-friendly approach, is set to launch in 2024, offering 24/7 access to over 6,000 US-listed stocks. The platform also plans to introduce cryptocurrency trading in the EU in the coming weeks, expanding its offerings beyond traditional equities.
Robinhood aims to lower fees and increase accessibility for UK investors
Robinhood’s UK launch is expected to shake up the investment landscape in the country, where retail investor enthusiasm for stocks has somewhat cooled. The platform aims to lower fees and increase accessibility for UK investors, similar to what it did in the US before the COVID-19 outbreak.
In a recent conversation with Bloomberg News, Robinhood’s CEO Vlad Tenev expressed his desire to replicate the fee reduction strategy for UK customers, saying that he wants to “make investing more affordable and more accessible to more people.”
To entice UK users, Robinhood is offering compelling features, such as 5% interest on uninvested cash, trading outside market hours, and zero trading commissions or currency fees. These features make Robinhood an attractive proposition for investors with even minimal capital, as they can trade stocks with as little as £1.
Robinhood to offer access to US equities initially, hints at broader offering in the future
Robinhood’s UK version, which is regulated by the Financial Conduct Authority (FCA), will initially provide access to US equities. However, hints from Robinhood UK CEO Jordan Dane Sinclair suggest a broader offering in the future.
In an interview with TechCrunch, Sinclair said that Robinhood is “always looking to expand our product offering in ways that align with our mission of democratizing finance for all.” He added that the platform is “excited about the potential to bring products like crypto, options, and fractional shares to the UK in the future.”
Robinhood to launch cryptocurrency trading in the EU soon, demonstrating its commitment to diversifying its offerings
In addition to its stock trading service, Robinhood is also preparing to launch cryptocurrency trading in the EU in the coming weeks, demonstrating its commitment to diversifying its offerings.
The platform, which already offers crypto trading in the US, allows users to buy and sell seven digital currencies, including Bitcoin, Ethereum, and Dogecoin.
Robinhood’s crypto trading service is expected to appeal to EU users who are interested in the fast-growing and volatile digital asset market. The platform claims to have over 9.5 million crypto customers in the US as of the first quarter of 2021, up from 1.7 million in the previous quarter.
Robinhood leverages its technology-focused infrastructure and expertise to expand internationally
Robinhood’s expansion into the UK and the EU is part of its global growth strategy, as the platform leverages its technology-focused infrastructure and expertise to reach new markets.
The platform, which is valued at over $11 billion, has raised over $2.4 billion in funding from investors such as Sequoia Capital, Andreessen Horowitz, and DST Global .
Robinhood’s CEO Vlad Tenev underscores the platform’s advantages, highlighting its robust infrastructure and the experience gained in the US market.
He emphasizes that Robinhood, being a technology company rather than a traditional financial institution, positions itself uniquely for international expansion in ways that conventional financial entities cannot achieve.
“We’ve built a lot of infrastructure, we have a brokerage, we have a clearing system, we have a lot of operational expertise, and I think being able to leverage that and offer products internationally is something that we’re very excited about,”
Vlad TenevRobinhood leverages its technology-focused infrastructure and expertise to expand internationally, challenging the status quo in the investment sector.
