Robinhood Rolls Out App in UK, Pauses Margin Lending Addition

Lyla Du and Aisha S Gani, Bloomberg News

The Robinhood logo on a smartphone arranged in the Brooklyn borough of New York, US, on Monday, May 8, 2023. Robinhood Markets Inc. is scheduled to release earnings figures on May 10. Photographer: Gabby Jones/Bloomberg , Bloomberg

(Bloomberg) -- Robinhood Markets Inc.’s commission free trading is now available throughout the UK — though the company said an effort to add margin lending to the offering is on pause.

UK customers can now access more than 6,000 US-listed stocks using the Robinhood app, the financial technology giant said in a statement. It had opened a waitlist for users to get switched on to the service late last year.

The Silicon Valley-headquartered firm is also planning to introduce margin investing to UK customers, which would allow them to borrow money from Robinhood to purchase the securities. That plan is on hold “as we continue to discuss with the regulator,” a spokesperson said in a statement.

Robinhood has been expanding into new markets after trading activity waned following a pandemic-induced boom that had inflated enthusiasm for meme stocks and boosted Robinhood’s revenues. The brokerage has also expanded into retirement, credit cards, crypto and cash accounts.

The firm, which has been trying to launch in Britain since 2019, is yet to offer trading in UK stocks. Still, its expansion in Britain coincides with a groundswell of interest in domestic equities, Jordan Sinclair, Robinhood UK’s president, told Bloomberg TV.

“People are talking about it. The chancellor is talking about it. It’s in the news weekly. So I think there is a nice push and momentum swirl around creating more ways to access the markets and increase participation,” Sinclair said.

Amazon, Apple

Some of the popular holdings among customers over the last few months include Apple Inc., Amazon.com Inc., and Nvidia Corp., according to Robinhood.

The brokerage is offering UK customers 5% interest on uninvested cash, trading outside of market hours, zero trading commission and no foreign exchange fees on trades. The company said on Monday it is also launching rewards and referral programs for its UK base.

Robinhood already offers margin investing to eligible US customers, and charges a standard margin interest rate of 12%, according to its website.

The company posted a jump in net revenue in the fourth quarter, helped by its global expansion and deposit growth.

Robinhood will be joining an increasingly crowded market, competing with locals like Revolut and Freetrade. New York-based rival Public.com, however, suspended its UK operation earlier this year just eight months after launching.

--With assistance from Anna Edwards and Guy Johnson.

(Updates to add UK CEO comments in fifth paragraph.)