Robinhood has officially launched its services in the UK, offering commission-free trading on over 6,000 US-listed stocks and American Depository Receipts (ADRs), featuring popular companies like Tesla, Amazon, and Apple.
The firm has established a waitlist for UK residents as it plans to roll out the app gradually, with full availability expected by early 2024. Robinhood initially postponed its UK launch in 2020 due to operational challenges stemming from a surge in day trading during the Covid-19 pandemic. A renewed strategy was announced in July when Jordan Sinclair, a former Freetrade executive, was appointed to lead the UK operations.
At launch, Robinhood will offer features such as trading without foreign exchange (FX) fees, the ability to trade outside regular market hours, and no minimum account requirements. Users can start building a portfolio with as little as $1 and enjoy an attractive interest rate of 5% AER on uninvested cash.
“Our vision to expand internationally has been a guiding force since Robinhood’s launch a decade ago. The UK, as a hub for innovation, global finance, and exceptional tech talent, is the perfect location for our first international brokerage product,” stated Vlad Tenev, CEO and co-founder of Robinhood. “We look forward to engaging with customers and policymakers as we expand our offerings in the UK.”
The company has faced challenges during the tech downturn, experiencing multiple rounds of layoffs amid reduced trading volumes. Earlier this month, Alphabet, Google’s parent company, divested its stake in Robinhood after initially investing before the company’s public offering in 2021, which coincided with a surge in retail investing.
Robinhood made its public debut at $38 a share, reaching a peak of over $80 shortly after trading began. However, by the time Alphabet dissolved its stake, Robinhood’s stock had plummeted to just over $8, following a disappointing third-quarter performance where both transaction revenue and monthly active user numbers fell short of analyst expectations.