Robinhood, the platform that has made a mark in the United States, has extended its reach and has now launched to operate in the United Kingdom. It now allows UK consumers to trade thousands of US shares.
The platform Robinhood already began its preparations for the launch in the UK almost five years ago. In 2019, it launched a waitlist for users, but abruptly went offline in mid-2020 without a full explanation. At that time, the company indicated that “many things have changed in recent months” and decided to focus on its business in the United States.
Now, the situation is different again. They have learned from their previous attempt and have matured as a company, now with 23 million customers and $87 billion in assets, said Jordan Sinclair, president of Robinhood in the United Kingdom.
At the same time, there are new local players gaining strength, such as Lightyear and Freetrade in the United Kingdom. The challenge for Robinhood may come from these younger companies rather than traditional financial services.
Details of Robinhood in the UK
Robinhood is currently offering early access to its app for those on the waitlist, with a gradual opening to all users in the UK scheduled for early 2024.
Users with access to the exchange will have the ability to trade during standard market hours and, outside of those hours, the 24-hour market allows limit orders on 150 different stocks. It also supports American Depositary Receipts (ADRs), allowing clients to invest in foreign companies not listed on US stock exchanges.
One difference at Robinhood in the UK is the introduction of 24/7 support right from the start, via chat, email and phone.
Regulated by the Financial Conduct Authority (FCA), Robinhood promises to challenge the status quo in the investment sector, offering 24-hour trading and commission-free access to more than 6,000 US stocks.
As Robinhood launch in the UK with US stocks, Jordan Sinclair indicates the long-term plan includes adding UK stocks. The platform seeks to attract British users with attractive features such as 5% interest on uninvested cash, after-market trading and zero trading commissions or exchange fees.
Next entry into the European Union markets
Finally, Robinhood is also set to launch cryptocurrency trading in the European Union in the coming weeks, demonstrating its commitment to diversifying its offering beyond traditional stocks and reaching new financial markets.