the US-based online investment app is set to launch in the UK in early 2024, after two failed attempts to expand internationally.
Robinhood, the US-based fintech company that offers commission-free stock trading and crypto investing, is expanding its services to the UK market. The company announced that it has received regulatory approval from the Financial Conduct Authority (FCA) to operate as a broker in the UK and that it will launch its app in the country by early 2024.
Robinhood’s UK launch marks its first international expansion, as the company aims to democratize finance for all and challenge the traditional brokerage industry. Robinhood claims to have over 30 million users in the US, who can trade over 6,000 US-listed stocks and other securities without paying any commissions or account fees. The company also offers a cash management account that pays 5% interest on uninvested cash, FDIC-insured up to $2.25M at partner banks.
In addition to stock trading, Robinhood plans to offer crypto trading in the UK and the European Union, following its success in the US market. The company said that it will launch its crypto service in the EU by mid-2024, allowing users to buy, sell, and transfer cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Shiba Inu, and more. Robinhood also said that it will introduce its web3 wallet, called Robinhood Wallet, which will enable users to store their crypto assets, and access NFTs, dapps, and other decentralized applications.
Robinhood’s expansion comes amid increased regulatory scrutiny and competition in the fintech sector. The company has faced several lawsuits and investigations in the US over its outages, security breaches, order execution practices, and its role in the GameStop saga earlier this year. The company also faced backlash from some users who accused it of limiting their trading during the market volatility caused by the Reddit-fueled meme stock frenzy.
Moreover, Robinhood will have to compete with other commission-free brokers that have already established themselves in the UK market, such as eToro, Interactive Brokers, Freetrade, Trading 212, and Stake. These platforms offer similar or even more features than Robinhood, such as fractional shares, social trading, ISA accounts, and access to global markets.
However, Robinhood is confident that it can attract UK investors with its user-friendly app, innovative products, and mission to make investing accessible and affordable for everyone. The company said that it will offer a free stock worth up to £200 for new users who sign up for its app in the UK. The company also said that it will launch a retirement account service in the UK, called Robinhood Retirement, which will offer a 1% match on contributions, custom recommended portfolios, and no commission fees.
Sources:
Robinhood Launches Stock Trading App in the U.K., Marking International Debut
Robinhood EU Crypto Trading Launch Coming in Weeks
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