Robinhood has taken another step in the UK, building on its launch in the major Western European market last year.
The American company has introduced options trading for UK users, a major step for the company which operates a trading platform as its core product.
Robinhood’s UK customers can now trade options on stocks and indices, which the firm states will offer more diversification and flexibility to its British userbase.
“Options trading has historically been difficult for UK investors to access due to high fees, complicated platforms, and limited educational resources,” said Jordan Sinclair, President of Robinhood UK.
“Today, we’re excited to roll out a US options trading experience that is both affordable and accessible, and leverages Robinhood’s powerful suite of tools to help UK investors take control of their financial future.”
Getting in on the UK trading app takeover
Trading apps have become increasingly popular in the UK in recent years, a trend echoed in other markets across the globe. Trading212, Plus500 and eToro are some of the most widely used and notable examples.
Demand for these apps really took off during the COVID-19 pandemic, to the point where Trading212 paused new account openings in 2021 due to the pressure demand was putting on its platform.
This demand has continued in the years since the pandemic and the UK continues to pose a lucrative opportunity for trading platforms. It is unsurprising then that Robinhood, which has cemented its position as the most popular trading app in the US, is eyeing up a greater presence in the UK.
In fact, UK entry was on the company’s agenda for quite some time. It finally secured full market launch in July last year, having first looked into the idea in 2020 but shelving it due to the pressures of growing US demand and later carrying out a partial launch in 2023.
The addition of options trading to its UK platform, which as Sinclar said is a popular offering among US investors and traders, suggests a long-term commitment to the market.
It will also likely put the company further under the spotlight of the Financial Conduct Authority (FCA), which has been keeping a close eye on trading apps in recent years amid the extensive growth these platforms have been enjoying.
The rollout comes at an interesting time for Robinhood, which has also been pursuing opportunities in the European cryptocurrency sector though also finding itself at loggerheads with the Commodity Futures Trading Commission (CFTC) back in the US regarding its sports event contracts product.
