Technology

Posted on November 20, 2019 by staff

US stock trading giant Robinhood to launch in UK

Technology

US-based commission free stock trading app Robinhood is to launch in the UK.

Coming early next year, the app will allow those in the UK to join over 6 million existing US users already investing in US and global stocks including Netflix, Snapchat and Apple.

Founded in 2013, the firm’s new operation will be led by UK company president Wander Rutgers, who previously worked at FinTech Plum and as head of treasury / product at TransferWise.

Rutgers joined the firm in November 2018 as the firm began its UK expansion plans.

The $7.6bn firm is now operating a waiting list for users ahead of launch in “early 2020”.

When launched, its new UK users will be able to trade without commission fees or account minimums, and can then track their investments and access business news and alerts about the available markets.

The app will accept and convert pounds into dollars during deposits and withdrawals at the current exchange rate, which it will also do without a fee.

Access to other markets, including the London Stock Exchange, has not been announced.

The company, has raised over $900m in funding since its launch, which most recently included a $50m Series E round from previous last-stage investor DST Global.

Robinhood’s full US feature set, which supports cryptocurrency and offers a debit card service product called “Cash Management”, will not be available to users in the UK at launch.

The market for trading and investment is heating up in the UK as firm’s battle to secure a mainly millennial user-base.

In August FinTech firm Revolut announced a commission free trading option for UK users, with access to US markets. Its service allows users buy and sell fractional shares of 300 U.S.-listed stocks on NASDAQ and NYSE, with a worth of at least $1.

Another competitor, London-based Freetrade, raised $15m this month in a record breaking crowdfund to bring the same technology and functionality to a specifically millennial UK market.

Tickr, which also explicitly targets millennial investors, offers an investment portfolio of businesses attempting to do social good.