Online investments app Robinhood said Thursday 30th November 2023 that it’s set to launch its platform in the U.K. in early 2024, marking the company’s third attempt at cracking international expansion.
Features on offer by the firm include the ability to choose from 6,000 U.S. stocks including Tesla, Amazon and Apple, and 24-hour trading five days a week. However, Robinhood will not offer U.K. stocks to begin with but will look to add them as it brings more products into the platform later. The U.K. version won’t include options and other derivatives at launch, either.
FCA warned of ‘gamification’
The FCA has previously warned about ‘gamification’ of investments, something the U.S. Securities and Exchange Commission is also worried about. Companies are obligated to respect consumer standards set out by the regulator.
Regulators are concerned brokerage apps like Robinhood and eToro, which engage retail investors with stimulating features like colourful graphics, push notifications, and a game-like interface, may encourage excessive trading that harms investors but is profitable for the market-makers.
Safeguards
Customer cash will be held in segregated accounts protected by U.S. Federal Deposit Insurance Commission insurance, Robinhood said, rather than the U.K. Financial Services Compensation Scheme. Robinhood users will be able to make a 5% annual yield on cash held in their accounts.
This will be the third attempt by Robinhood to launch in the UK.