Robinhood Global Ascent: Trading app pioneer Robinhood Markets Inc. (HOOD.O) announced its expansion into the United Kingdom, marking the first step in its international growth strategy to “democratize finance” and broaden access to global markets.
Robinhood gained widespread attention during the 2021 retail trading frenzy in the United States, attracting small investors to its commission-free platform for supporting “meme stocks” amid pandemic lockdowns. However, trading activity has since waned as more Americans contend with a cost-of-living crisis, soaring interest rates, and elevated inflation.
Vlad Tenev, Robinhood’s CEO and Co-Founder, identified Britain as the “ideal place” for the company’s inaugural international brokerage offering, citing the UK’s status as a hub for innovation, global finance, and tech talent.
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In the UK, Robinhood’s customers will enjoy commission-free trading for over 6,000 US-listed stocks and American Depositary Receipts (ADRs), without foreign exchange fees and no account minimums. Jordan Sinclair, President of Robinhood UK, emphasized the end of high fees for UK investors trading in US markets and the opportunity for them to earn a 5% annual equivalent rate on uninvested cash. Accounts will be insured by the US Federal Deposit Insurance Corporation up to a maximum of $2.25 million.
Robinhood faced a setback earlier this month when it fell short of Wall Street revenue estimates for the third quarter due to a slowdown in trading activity. The company’s transaction-based revenue declined by 11% year-over-year to $185 million, and monthly active users dropped by 16% to 10.3 million compared to the previous year.
Our Reader’s Queries
Is Robinhood going global?
Robinhood has expanded its crypto service to the European Union, enabling users to purchase and sell over 25 digital currencies. This marks the company’s second major expansion outside of the United States, following the launch of a waitlist for UK customers to join its stock-trading platform in early 2024.
What happened to my SPPI stock on Robinhood?
Unfortunately, the SPPI Key Statistics stock is no longer available on Robinhood.
What happened to my Volta stock on Robinhood?
Volta is currently unavailable for trading on Robinhood. However, you can easily keep an eye on this stock and trade other options and stocks without any commission by signing up for a Robinhood brokerage account.
What is the equivalent of Robinhood for Europe?
Looking for the best stock broker in Europe? Look no further than Interactive Brokers, the top choice for savvy investors in 2024. For those seeking free stock and ETF trading, eToro is a great option, while Fidelity offers commission-free trading on US stocks and ETFs. Zacks Trade boasts low fees, and Charles Schwab also offers free trading on stocks and ETFs. Finally, SoFi Invest rounds out the list with their own free stock and ETF trading platform. No matter your investment goals, these top brokers have you covered.