Trading app Robinhood (NASDAQ: HOOD), known for its role in the meme stock frenzy, has finally launched in the UK after two previous attempts. This marks the company’s first international expansion and comes armed with features designed to entice budget-conscious British investors.
UK investors have long called for lower fees and better returns on uninvested cash, an area where traditional platforms have been criticised. Robinhood addresses this directly by offering commission-free trading on over 6,000 US stocks and eliminating foreign exchange fees. They’ve sweetened the deal further with a competitive 5% interest rate on uninvested cash held in their accounts.
Recognising the growing trend of after-hours trading, Robinhood boasts extended market access through their “Robinhood 24-Hour Market” feature. This caters to over a third of their existing users who already trade outside of regular market hours.
Beyond commission-free trades, Robinhood UK president Jordan Sinclair hopes the app’s educational resources, including stock fundamentals, earnings reports, and analyst ratings, will attract more seasoned investors.
While Robinhood hasn’t set specific growth targets for the UK, it faces a competitive environment with established platforms already vying for market share. Despite this challenge, Robinhood’s recent stock price surge of over 100% suggests they’re confident their low-cost, user-friendly approach will resonate with British investors.
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