Robinhood Joins US Brokers in Attempt to ‘Conquer’ the UK

<p>After US
trading platforms like Public.com and Webull emerged in the UK market,
Robinhood, the popular trading app provider, has decided to make its mark
in the country. The company, which pioneered 'zero-fee' trading, hopes to
obtain a license from the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>) by the end of the
year, according to information released by Bloomberg. </p><p>Robinhood Wants to Enter
the UK Market</p><p>According
to media reports today (Tuesday), Robinhood is looking for individuals to fill
key positions in the UK market. The Silicon Valley-based company posted on
LinkedIn that they're looking for a Compliance Officer in London and a few
other executives.</p><p>"Our
team of Hoodies in the UK will enable Robinhood to continue creating great
financial products on our journey towards democratizing finance for all,"
the job listing stated.</p><p>According
to official documents filed by the company in May, the retail trading platform
intends to establish an FCA-regulated branch by the end of this year at the
latest. Attempts to gain authorization in the UK have been ongoing <a href="https://www.financemagnates.com/cryptocurrency/news/commission-free-trading-app-robinhood-to-debut-in-the-uk/" target="_blank" rel="follow">for over
three years</a>. The <a href="https://www.financemagnates.com/terms/a/acquisition/">acquisition</a> of the London-based cryptocurrency company, <a href="https://www.financemagnates.com/cryptocurrency/robinhood-signs-deal-to-acquire-uk-crypto-app-ziglu/" target="_blank" rel="follow">Ziglu is
expected to facilitate this process</a>.</p><p>The news
came shortly after <a href="https://www.financemagnates.com/forex/brokers/publiccom-expands-beyond-the-us-launches-in-the-uk/" target="_blank" rel="follow">Public.com</a>, a New York platform for retail investors, also
announced its intention to cater to clients from the UK, offering them trading
on over 5,000 US stocks. In addition, <a href="https://www.financemagnates.com/forex/webull-enters-the-uk-after-launching-in-three-major-apac-jurisdictions/" target="_blank" rel="follow">American Webull</a> decided to enter the UK market,
having previously launched three branches in major APAC jurisdictions.</p><p>Until now,
American companies offering retail trading services have had difficulty
entering the UK market due to deeply entrenched local competition. Investors commonly
use platforms like Freetrade, Plus500, or Revolut. However, as UK companies
attempt to expand into the US, American businesses are also beginning to look
for opportunities in the UK.</p><p>UK Emerges as an Attractive Market for US Firms</p><p>The moves
made by Webull, Capital.com, and now Robinhood are not accidental. <a href="https://www.financemagnates.com/forex/uaes-fx-and-cfds-trader-population-reaches-record-49000-in-2023/" target="_blank" rel="follow">According to
the latest data from Investment Trends</a>, the number of active retail investors
in major jurisdictions has been decreasing recently. In the United States, this
decline was 24%. Despite the fact that the drop in the number of active
investors in the UK was greater than in the US (25% vs 24%), the overall base
of active clients in the CFD/FX market is still clearly larger in the UK.</p><p>Investment Trends
reports that in May 2022, 205,000 people in the UK actively traded on these
markets, while in the United States this number was only 175,000. The UK is one
of the most developed financial markets in the world, so it could enable Robinhood
to expand its existing user base significantly.</p><p>For
Robinhood, this is another attempt to boost its <a href="https://www.financemagnates.com/forex/robinhood-trims-workforce-again-as-retail-investor-activity-wanes/" target="_blank" rel="follow">declining active user
base</a>. Finance Magnates recently reported that in an effort to attract a
younger generation of investors, the platform was the first <a href="https://www.financemagnates.com/forex/robinhood-fights-drop-in-users-by-introducing-24-hour-market-trading-for-all/" target="_blank" rel="follow">to introduce 24/5
trading for US stocks</a>. Poorer results led to a third round of employment cuts
at the firm. In 2022, the company laid off 1,000 people during the previous two
layoff periods. In a report published last month, Robinhood revealed that the
number of users dropped 8% in May. Meanwhile, the company recorded a net
loss of $511 million in the first quarter.</p>

This article was written by Damian Chmiel at www.financemagnates.com.