UK Investors Gain Access To Margin Investing With Robinhood

Robinhood has announced that it is starting margin investing for its UK clients, giving regular traders the option to borrow money. This change comes just a few months after the firm began operating in the UK.

With the new margin investing feature, UK customers can borrow money from Robinhood with their current stocks as security. This lets them buy more stocks and possibly mix up their investments. If customers get approved, the borrowing rates start at 6.25% for amounts up to $50,000. For amounts over $50 million, the rate goes down to 5.2%.

The Company Seeks To Help Average Investors Enhance Their Portfolios

The President of Robinhood UK, Jordan Sinclair noted that by launching margin investing, the firm is giving its UK customers more ways to improve their investing. He highlighted that the company wants to help regular investors. The firm knows that investors want to grow and diversify their portfolios with great rates and an easy-to-use app, Sinclair added.

Sinclair also noted in an interview that the company had to make sure the local regulator was okay with its plan to get approval for margin investing in the UK.

This new margin investing feature comes after Robinhood launched its app in the UK in March. The firm offers trading without commissions, no foreign exchange fees, and extra safety, including $2.5 million in FDIC insurance for unused cash via its Brokerage Cash Sweep Program.

Robinhood’s entry into margin investing in the UK could shake up traditional brokerage companies, which often charge higher fees and give good rates only to wealthy clients. Last week, the firm also started offering index options and futures trading through a partnership with Cboe.

Robinhood has tough competition in the UK. The local company Revolut is popular all over Europe, and this month, Freetrade got stronger in the retail investing market by buying Stake’s UK part.

Robinhood Launched A New Desktop Platform For Futures And Index Options Trading

The company made it clear that not everyone will get margin investing right away. Customers need to apply and meet certain requirements. The firm noted that once a customer is permitted to trade with margin, their rate will be based on how much they borrow.

Last week, Robinhood launched its new desktop platform and included futures and index options trading in its mobile application. This is part of the company’s plan to take business away from traditional brokerages.

The 11-year-old app, known for helping everyday investors, is now trying to grow into a full-service financial company and compete with established firms that work with big investors.

The new platform will be available for free and will include advanced trading tools, custom layouts, and real-time data. Meanwhile, the app will let users trade futures on the S&P 500 index, oil, bitcoin, and more. Customers can also trade index options.