US-based platform Public.com gives up on trying to conquer the UK’s retail trading market
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Eight months after launching operations in the UK, the New York-based investing platform Public.com finally decided to give up on trying to win over the UK retail trading market. Despite its initial optimism, the platform had decided that competition in the United Kingdom is simply too great.
Breaking:
Robinhood rival Public. com is planning to shutter its UK business just eight months after launch, the firm has told its customers today. @CharlieConchie with the scoop 👇https://t.co/Gp5R9jujho
— City A.M. (@CityAM) February 26, 2024
Public.com to shut down user accounts by the end of April
After coming to the conclusion that its efforts to win over the UK market would not be enough, Public.com decided to throw in the towel and suspend its local operations.
Some suspect that the platform’s effort to assimilate into the local market over the past eight months was hindered by Robinhood. Robinhood also launched its own brokerage service in the UK in late November 2023.
Yesterday, February 26, Public.com sent an email to its users, announcing to them that it will suspend operations in the UK. The platform intends to shut down on May 3, 2024, but it stressed that all UK accounts will be closed permanently after April 30. In other words, the platform’s users have until the end of April to get their affairs in order and prepare for the permanent shutdown of their accounts.
Public.com’s spokesperson also confirmed for media outlets that its intention is to focus on its business in the US moving forward. It noted that its US branch has seen accelerated growth, especially after recent launch of new features, including a 5% high-yield account, and the introduction of corporate bonds and options trading.
The competition in the UK was too much for Public.com
Public.com launched in the UK in July 2023, with much fanfare and great optimism. After all, this was its first expansion into a new market, and outside of the native US. Back then, the firm’s CEO, Leif Abraham, stated that London was the financial epicenter of Europe and a natural place for Public to start its international expansion.
With that in mind, the abrupt decision to withdraw from the market after less than one year came as a surprise for many. However, there have been hints that the firm’s ambition to continue its international expansion has been scrapped after only six months, as Public seemed like it wanted to focus on consolidating its resources stateside.
It is worth noting that the firm has an office in London, as well as Amsterdam and Copenhagen. While it is unknown what this means for those working at the London office, those in the other two cities will apparently not be affected by the firm’s decision.
Looking at Public’s recent move, industry analysts suggested that the retreat shows how crowded and fierce competition in the UK’s retail investing space really is, especially since Robinhood expanded into the region last November.
