just now
US trading platform Robinhood has fully launched in the UK market, offering commission-free trading of US stocks and no foreign exchange fees to British retail investors, in a direct challenge to established brokers.
Research from Radius Insights shows that major UK brokers typically charge investors with £10,000 portfolios an average of £240 annually for US stock trading. Robinhood's zero-fee model aims to disrupt this pricing structure.
"Today's general availability marks the start of a new chapter for Robinhood, and we're excited to continue challenging the status quo by delivering more local products and services that resonate with our customers and meet their needs," said Jordan Sinclair, President of Robinhood UK.
The platform, which began UK operations with a waitlist in November 2023, offers trading in more than 6,000 US-listed companies, 24-hour market access, and 5% AER on uninvested cash. Early data shows 70% of UK trades are in fractional shares, with Apple, Amazon, Google and NVIDIA among the most popular holdings.
New features announced today include web browser access and a sign-up reward programme offering fractional shares worth between $7 and $175, though 96% of customers receive $7-$8.
Customer funds receive multiple layers of protection, including $2.25 million FDIC insurance on uninvested cash - significantly higher than the UK's £85,000 standard protection. Additional coverage includes SIPC protection up to $500,000 and supplementary insurance providing protection up to $1 billion aggregate, with individual customer limits of $50 million in securities and $1.9 million in cash.
