Robinhood, a major player in the online investments app world, has announced a new venture into the U.K. market for the third time. The company plans to launch its platform in early 2024, offering features such as access to 6,000 U.S. stocks and 24-hour trading five days a week.
Although Robinhood won’t initially offer U.K. stocks, the company plans to add them along with other products in the future. Additionally, options and other derivatives will not be available at launch. Robinhood’s U.K. chief, Jordan Sinclair, expressed enthusiasm for the 24-hour trading feature, emphasizing its value for users looking to take advantage of market-moving news.
This isn’t the first time that Robinhood has attempted to enter the U.K. market. In 2019, a waiting list garnered over 300,000 sign-ups, but the company ultimately withdrew its plans due to soaring demand in the U.S. during the Covid-19 pandemic. The following year, an attempt to acquire British crypto-trading app Ziglu also fell through.
Now, Robinhood is inviting Brits to join a waitlist for early access to its platform, and users can speed up the process by sharing a referral link with others. The company is determined to make a strong impact in the U.K. market, with CEO Vlad Tenev expressing a desire to become one of the country’s largest employers.
Competitor EToro’s U.K. managing director, Dan Moczulski, sees Robinhood’s entry as an exciting development for the industry. Meanwhile, Tenev is confident that Robinhood’s improved platform will avoid any previous missteps in the U.K.
Regulatory concerns have also been addressed, with Robinhood obtaining a license from the U.K.’s Financial Conduct Authority. The company plans to keep customer cash in segregated accounts protected by U.S. Federal Deposit Insurance Commission insurance, and it won’t implement payment-for-order-flow, a practice banned in the U.K. that can create conflicts of interest.
As the competition in the U.K.’s retail trading market heats up, Robinhood and its rivals are gearing up for a new chapter in the world of online investments.
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