© Reuters. FILE PHOTO: The logo of Robinhood Markets, Inc. is seen at a pop-up event on Wall Street after the company’s IPO in New York City, U.S., July 29, 2021. REUTERS/Andrew Kelly
By Sinead Cruise
LONDON (Reuters) – Trading app operator Robinhood Markets Inc (NASDAQ:). said on Thursday it would roll out brokerage services in Britain, as part of an international expansion plan aimed to “democratise finance” and increase access to markets.
Robinhood grabbed the attention of millions during a 2021 retail trading frenzy in the United States, when mom-and-pop investors flocked to the company’s commission-free platform to back so-called “meme stocks” during pandemic-era lockdowns.
Since then, trading activity has sunk with more Americans grappling with a cost-of-living crisis, high interest rates and elevated levels of inflation.
Vlad Tenev, CEO and Co-Founder of Robinhood, said Britain was the “ideal place” for the company to launch its first international brokerage product, describing the UK as a hub for innovation, global finance and tech talent.
Robinhood said UK customers will have access to commission-free trading of more than 6,000 US-listed stocks and American Depositary Receipts (ADRs), without foreign exchange fees and no account minimums.
“For too long, UK investors have incurred high fees to invest in the U.S. markets and earned low returns on their uninvested cash,” Jordan Sinclair, President of Robinhood UK, said.
Customers could earn 5% annual equivalent rate on uninvested cash, Robinhood said, with accounts insured by the US Federal Deposit Insurance Corporation up to a total maximum of $2.25 million.
The online brokerage missed Wall Street estimates for third-quarter revenue earlier this month, after a slowdown in trading activity, sending its shares down more than 9% in extended trading.
Robinhood’s transaction-based revenue dropped 11% year-over-year to $185 million. Monthly active users dropped 16% to 10.3 million from a year earlier.
