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Robinhood launches in the UK

Robinhood launches in the UK

Robinhood has opened up for business in the UK, providing commission-free trading of more than 6,000 US-listed stocks and ADRs including big hitters such as Tesla, Amazon, and Apple.

The firm has set up a waitlist for UK residents with plans to open up the app on a rolling basis over the following weeks, reaching full availability in early 2024.

In 2020, the company abandoned a planned UK launch as it dealt with operational problems caused by an explosion of day trading in its core US market during the Covid-19 pandemic. A renewed push was signalled in July when it tapped Freetrade executive Jordan Sinclair to lead the business in the UK.

At launch, Robinhood will offer trading without foreign exchange (FX) fees, trading outside of market hours and no account minimums. Users can build a portfolio for as little as $1 and grow their uninvested cash at an eye-catching interest rate of 5% AER.

“Since we launched Robinhood a decade ago, it’s always been our vision to expand internationally. As a hub for innovation, global finance and top tech talent, the United Kingdom is an ideal place for us to launch our first international brokerage product,” says Vlad Tenev, CEO and co-founder of Robinhood. “We look forward to continuing to engage with customers and policymakers as we expand our offerings in the UK.”

The company has been struggling during the tech downturn, with successive rounds of lay-offs coming amid depressed trading volumes.

Earlier this month Google parent Alphabet dissolved its stake in Robinhood, having first invested in tthe company before it went public in 2021, betting on the startup as it rode the wave of a surge in retail investing.

It listed at $38 per share and saw its price hit more than $80 in the first few days of trading.

However, by the time of the final dissolution, the company was trading at just over eight dollars a share having missed third quarter revenue analyst predictions, with transaction revenue and monthly active user numbers both down.

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