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Robinhood, the US-based trading platform that entered the UK market in March 2024, has announced the launch of margin investing services for UK retail investors, with annual interest rates ranging from 5.2% to 6.25%.
The move marks a significant expansion of Robinhood's UK offerings, potentially disrupting a market where retail investors have traditionally faced higher barriers to accessing margin trading facilities.
Under the new service, approved customers can borrow against their existing portfolio to purchase additional securities. The rate structure is tiered based on loan size, starting at 6.25% for amounts up to $50,000 and dropping to 5.2% for loans exceeding $50 million.
"With the launch of margin investing, we're giving our UK customers even more flexibility and tools to enhance their investing strategies," said Jordan Sinclair, President of Robinhood UK. "At Robinhood we understand that investors want access to expand and diversify their portfolios at industry leading rates, in an amazing user experience."
The full rate structure comprises:
- 6.25% for up to $50,000
- 6.05% for $50,000-$100,000
- 5.75% for $100,000-$1 million
- 5.50% for $1 million-$10 million
- 5.45% for $10 million-$50 million
- 5.20% for $50 million and above
The service will be rolled out gradually, with broader availability expected "in the coming weeks", according to the company. Customers must apply and meet eligibility requirements to access margin trading facilities.
This launch follows Robinhood's March entry into the UK market, where it has positioned itself as a commission-free trading platform. The company offers $2.5 million in FDIC insurance on uninvested cash through its Brokerage Cash Sweep Programme.
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