Robinhood, the US-based stock trading app, is set to officially launch its services in the UK early in 2024, marking its third attempt to establish a presence in the country. The company, renowned for its 24-hour commission-free stock trading platform, has initiated a waitlist for UK users, gradually granting access to its app over the next few weeks with full availability anticipated next year.
UK users will gain access to a selection of 6,000 US stocks initially, with the potential inclusion of UK stocks to be explored in the future. The announcement on Thursday signifies a renewed effort by Robinhood to tap into the UK market, after encountering setbacks in its previous attempts.
In 2019, the company secured regulatory approval from the Financial Conduct Authority (FCA) but subsequently abandoned its UK launch plans to focus on the surging demand in the US. In 2022, Robinhood considered acquiring the UK-based crypto company Ziglu; however, the deal was later called off.
CEO Vlad Tenev emphasized that international expansion had always been part of the company’s plan since its inception. The decision to launch in the UK reflects confidence in the regulatory environment, despite recent criticisms of its stringency. Tenev expressed satisfaction with the “constructive relationship” with the FCA.
Robinhood’s move is seen as a testament to the UK’s appeal as a hub for innovation, global finance, and top tech talent. Tenev stated, “The United Kingdom is an ideal place for us to launch our first international brokerage product.”
Minister for Investment, Lord Johnson, welcomed Robinhood’s choice of the UK as its first international brokerage market, citing the country’s thriving financial services and fintech sectors. He highlighted the UK’s attractiveness for significant levels of investment and venture capital.
In preparation for the UK launch, Robinhood had appointed Jordan Sinclair, a former executive from Barclays and Freetrade, to lead Robinhood UK in July. Sinclair expressed the company’s commitment to addressing historical challenges faced by UK investors, such as high fees for US market investments and low returns on uninvested cash.
Robinhood’s foray into the UK market reflects its global ambitions, with plans to enhance its offerings based on customer feedback in the lead-up to general availability next year.