The largest UK brokers typically charge UK investors, with a £10,000 portfolio, an average of £240 per year to invest in US stocks*–Robinhood offers no commission fees and no foreign exchange (FX) fees on trades.**
Today, we’ve rolled all eligible customers off our waitlist and Robinhood is now officially available throughout the United Kingdom. With Robinhood, customers simply get more for their money, with no commission fees and no foreign exchange (FX) fees on trades, access to more than 6,000 global companies listed on US markets, and more. Customers’ capital is at risk and other costs apply–see our fee schedule here. We’re also launching support for several new features today including web support, rewards for signing up, and a referral program for friends and family.
“We’ve been actively gathering feedback and engaging with customers since our waitlist launch at the end of last year, and have been so encouraged by the reception we’ve received thus far,” said Jordan Sinclair, President of Robinhood UK. “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.”
Here’s what we’ve seen and heard from customers in the UK since November:***
- They love no commission fees and no FX fees on trades, saying “that’s what makes all the difference.” They’re tired of steep fees from other brokerages, which they called “hard to swallow” and have even told us that in the past fees have discouraged them from investing.
- Users are delighted by the additional protections they receive from Robinhood–most notably the $2.25M in FDIC insurance on their uninvested cash compared to £85,000 in the UK.
- 5% AER on uninvested cash is highly valued by our user-base with customers putting their money to work, even if they’re not investing it. In speaking with customers they’ve called it “amazing,” “really helpful,” and “a big factor in me moving over.”
- Since the start of the year, roughly a third of notional trading volume is from outside of traditional market hours. With Robinhood 24 Hour Market, customers finally have the flexibility and convenience to invest on their own timelines – not Wall Street’s.
- Customers have called the app “really well designed,” “easy to use,” and “very detailed.” We’ve spent a lot of time making the user experience beautiful and intuitive, with the goal of making investing more accessible to everyone.
- In the three months since launch, 70% of trades are for fractional shares and 30% are for whole shares. Fractional shares provide customers greater access to highly valued equities, providing greater flexibility for their portfolios.
- Some of the most popular holdings so far in the past few months include AAPL, AMZN, GOOGL and NVDA.
- It’s very apparent that customers value education and learning, with the majority of already onboarded customers having selected to research an investment. They appreciate having tools at their fingertips to help them make informed decisions throughout their investing journey.
We’ve also heard loud and clear that local tax wrappers, access to ETFs, UK stocks, options trading, and recurring investments are important tools that our customers are eager to have access to.
Built to Work for Everyone
While the initial feedback has been encouraging, we recognise that all investors have different wants and needs, which is why we’re committed to building for the long-term, and are steadily introducing new features and services that resonate with UK residents. In November we announced that UK customers will have access to commission-free trading of more than 6,000 global companies listed on US markets, trading without foreign exchange (FX) fees, trading 24 hours a day and five days a week, no account minimums, access to real-time data and advanced investment tools in-app, and the opportunity to earn 5% AER on their uninvested cash.
But that was only just the beginning. Today, we’re excited to introduce a suite of new features to help meet our customers’ needs:
- Stock Rewards (NEW): When customers sign-up for Robinhood they can earn a fractional share reward between $7 and $175. When they refer friends and family they’re eligible for the same reward.**** To receive the sign-up reward, customers’ account application must be approved and they must fund their account. For referrals, once a friend signs up, gets approved and funds their account, customers will receive their reward. Read our T&Cs for more information.
- Web Support (NEW): Beginning today, Robinhood is now available via traditional web browsers, giving customers another way to easily and intuitively manage their investment portfolio.
Challenging the Status Quo
Research from Radius Insights shows that the largest UK brokers typically charge UK investors, with a £10,000 portfolio, an average of £240 per year to invest in US stocks. Over a 10-year period this adds up to thousands of pounds spent on FX and commission fees.* The study analysed fees from five of the largest brokerages in the UK based on total assets under management, which were calculated over a one-year period and then extrapolated over ten years to assess the impact fees have on typical investors. Robinhood offers no commission fees and no foreign exchange (FX) fees on trades.
To amplify today’s launch, we’ve built a modern day Robin Hood statue, which will appear throughout London’s financial district over the coming days to represent upending the status quo. Here’s a glimpse of what people will see around the city:
Safety, Education, and Protection
We offer a number of resources to help customers of all experience levels including access to easy-to-understand educational tools and resources both online and in the app, as well as 24/7 customer support. We also use a number of security tools to protect customers’ accounts including two-factor authentication, encryption, BCrypt hashing algorithm for password storage, and more.
In addition, Robinhood customers in the UK are eligible for SIPC coverage, which protects securities for customers up to $500,000 (including $250,000 for claims for cash). We’ve also purchased an additional insurance policy for accounts held at Robinhood to supplement SIPC protection, which becomes available to customers in the event that SIPC limits are exhausted. This additional insurance policy provides protection for securities and cash up to an aggregate of $1 billion, and is limited to a combined return to any customer of $50 million in securities, including $1.9 million in cash. These do not protect against a loss in the market value of securities. For customers participating in the Cash Sweep program and earning 5% AER, $2.25M FDIC insurance is in place to cover the customers’ uninvested cash. Read more about how money is protected at Robinhood by visiting the Help Centre.
Availability
Robinhood is available on the web as well as all iOS and Android devices to all eligible customers throughout the UK. To learn more or get started visit robinhood.com and follow @Robinhood_UK.
Disclosures
*Based on third-party research from Radius Insights conducted in March 2024. The study estimates the commission fees and foreign exchange (FX) costs charged to a hypothetical investor who invests £10,000 a year and makes ten trades of US stocks annually. The study analysed fees from five of the largest brokerages in the UK based on total assets under management, which were calculated over a one-year period and then extrapolated over ten years to assess the impact fees have on typical investors.
**It’s important to know that the value of your investments can go up and down, and you may get back less than you invest. Other costs apply for investing, see our fee schedule here.
***Based on internal Robinhood data and field research conducted with Robinhood customers in the UK.
****Terms and conditions apply (sign-up rewards; referral rewards). 96% of customers receive $7-$8. The reward, when combined with the value received from all other offers in the current calendar year, may not exceed $1,500 per household per year.
Extended hours trading carries unique risks, such as greater price volatility, lower liquidity, wider bid/ask spreads, and less market visibility, and may not be appropriate for all investors.
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