Right this moment marked the launch of Robinhood‘s beforehand introduced brokerage companies within the UK. The launch represents Robinhood’s first growth past the U.S.
In its announcement, the corporate mentioned UK prospects can have entry to over 6,000 U.S.-listed shares and American Depository Receipts (ADRs) at launch. Options will embody commission-free buying and selling, high-yield curiosity on uninvested money, prolonged market hours, and fee-free foreign money conversion between GBP and USD.
Robinhood goals to spark greater retail funding internationally because it did within the U.S. after pioneering its zero-commission, no-minimum-balance brokerage mannequin in 2013. The corporate claims this innovation has, up to now, saved its customers billions in charges and helped increase U.S. family fairness possession by 27% between 2013-2022.
The worldwide push comes at the same time as Robinhood’s income has not too long ago declined. In Q3 2023, transaction-based income fell 55% year-over-year, probably owed partially to crypto bear market circumstances.
Robinhood’s place
Along with the UK brokerage, Robinhood has revealed ambitions to supply cryptocurrency buying and selling within the EU pending regulatory approval. The corporate at the moment holds over $3 billion value of Bitcoin to custody person crypto balances in chilly storage. Analysis exhibits Robinhood additionally owns the fifth largest Ethereum pockets, with over $2.5 billion in holdings.
Cryptocurrencies made up 12% of Robinhood’s transaction income in Q3 2023, down from 24% in Q3 2022. Nonetheless, crypto change growth nonetheless options prominently in administration’s progress forecasts as buyer balances proceed rising regardless of market volatility.
Robinhood additionally faces macroeconomic challenges which will affect its international ambitions, together with excessive inflation, rising rates of interest, and tightening disposable earnings.
In the meantime, early Robinhood investor Alphabet Inc. liquidated the final of the 612,214 Robinhood shares it beforehand held as of August. The tech big started incrementally lowering its stake as Robinhood’s falling transaction volumes posed headwinds.
The trail ahead stays advanced as Robinhood navigates first-time growth into the UK and different focused markets towards this financial backdrop.
