Robinhood enters the UK market with commission-free trading, while its margin lending plan is temporarily suspended
Fintech company Robinhood has fully launched commission-free trading services in the UK, but has postponed its plans to increase leverage lending functions. UK customers can access over 6,000 US-listed stocks through the Robinhood app, and enjoy benefits such as non-investment cash interest, zero trading commissions, and no foreign exchange fees. However, the launch of margin investment services has been temporarily put on hold due to discussions with regulatory authorities. The President of Robinhood UK stated that the company will continue to provide local products and services that meet customer demands
According to the VITON financial APP, the commission-free trading business of the US brokerage firm Robinhood has now been fully launched in the UK. However, the company stated that their plan to add leverage lending functionality to the service is currently on hold.
Currently, UK customers can access over 6,000 US-listed stocks through the Robinhood app. The financial technology giant opened a waiting list at the end of last year for users to register to use the service.
Additionally, the Silicon Valley-based Robinhood also plans to introduce margin investment services to UK customers, allowing them to borrow from Robinhood to purchase securities. A spokesperson stated in a release that due to "ongoing discussions with regulatory authorities," the plan is temporarily on hold.
It is understood that after the trading frenzy sparked by the pandemic subsided, Robinhood has been expanding into new markets. This frenzy had previously boosted enthusiasm for "Meme Stocks" and increased Robinhood's revenue. The brokerage firm has also expanded into retirement, credit card, cryptocurrency, and cash account services.
Jordan Sinclair, President of Robinhood UK, stated in a release, "Today's full opening marks a new chapter for Robinhood. We are excited to continue challenging the status quo and providing more locally resonant products and services that meet customer needs."
According to Robinhood, popular stocks among customers in recent months include Apple (AAPL.US), Amazon (AMZN.US), and NVIDIA (NVDA.US).
At the same time, the brokerage firm offers UK customers 5% interest on non-investment cash, zero commission trading outside market hours, and no foreign exchange fees during trading. The company also announced on Monday that it is launching rewards and referral programs for its UK customers.
In contrast, Robinhood has been offering margin investment services to eligible US customers, with a standard margin interest rate of 12% posted on its website.
Benefiting from global expansion and deposit growth, Robinhood announced an increase in fourth-quarter net revenue. Furthermore, the pioneer of commission-free trading apps has considered the UK as a target market since 2019. Now, Robinhood has entered the competitive market, competing with local companies like Revolut and Freetrade