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To Attract Customers, Robinhood Launches In Britain With Inexpensive US Trading

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The company that runs the trading app Robinhood Markets Inc. (HOOD.O) announced on Thursday that it will launch brokerage services in the United Kingdom as part of a worldwide development strategy meant to “democratize finance” and improve market accessibility.

Meme Stocks

When mom-and-pop investors flocked to Robinhood’s commission-free platform in 2021 to back so-called “meme stocks” during pandemic-era lockdowns, the business captured the attention of millions of people.

Since then, as more Americans struggle with high borrowing rates, rising inflation, and a crisis in their standard of living, trade activity has decreased.

The “ideal place” for Robinhood to introduce its first foreign brokerage product, according to CEO and co-founder Vlad Tenev, who also described the UK as a powerhouse for global finance, innovation, and digital expertise.

According to Robinhood, UK clients will be able to trade over 6,000 US-listed equities and American Depositary Receipts (ADRs) commission-free, with no minimum account amount required and no foreign exchange expenses.

Missed Wall Street Projections

The president of Robinhood UK, Jordan Sinclair, stated, “For far too long, UK investors have paid exorbitant fees to invest in the U.S. markets and received meager returns on their cash that they did not invest.”

Robinhood

(Photo: The National Interest)

According to Robinhood, customers who have accounts protected by the US Federal Deposit Insurance Corporation up to a total of $2.25 million can receive a comparable 5% annual interest on their uninvested funds.

Following a decrease in trading activity, the online brokerage missed Wall Street projections for third-quarter revenue earlier this month, which caused its shares to drop more than 9% in extended trading.

At $185 million, Robinhood’s transaction-based revenue fell 11% from the previous year. From a year ago, the number of monthly active users decreased by 16% to 10.3 million.

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