Robinhood told users on tuesday it had abandoned plans to increase into the uk, establishing the next time the popular free stock-trading software features didn't launch beyond your us.
The san francisco-based team had originally planned to introduce in the uk early this season in june removed any definitive schedule. on tuesday, the company stated in email messages to 250,000 users that has registered to open up a uk account it had scrapped efforts to launch.
Because the coronavirus pandemic hit, robinhood features latched on to a growth in retail investing in the usa that features drawn hundreds of thousands of investors to economic markets for the first time, looking to drive a 45 % rally in stocks since the lows in march. but this formula features shown hard to reproduce offshore.
Were saddened to share with you that weve made the difficult choice to postpone our united kingdom launch indefinitely, the business said. weve started to recognise which our attempts are currently most readily useful used on strengthening our core business in the us.
The business will take straight down its uk website and transfer the majority of its london-based staff to operate on jobs to aid its united states functions, based on an individual acquainted the plans.
The decision marks the next time the team has actually placed on hold intends to expand beyond the usa. in 2015, the company launched it might open in australia but never did.
This current year, the organization secured $600m in equity fundraising, offering it a valuation of $8.6bn up from $7.6bn it obtained in its past round in 2019.
Robinhood has actually shaken within the us retail trading industry since its launch as a zero-fee system in 2015. that hostile prices construction which calls for the business to generate income from selling buyer orders to market makers, trading money balances and billing for margin financial loans caused rivals like charles schwab and e-trade to eradicate trading commissions this past year.
In february, the companys methods suffered a trend of disruption, splitting its users from the areas during some of the most volatile trading times of the year. aggrieved dealers have actually since mounted a class-action lawsuit to get their losings.
Some experts also have flagged the risks of offering advanced resources eg options trading to youthful and inexperienced investors. final month, 20-year-old alex kearns took his very own life after obviously believing he previously lost more than $700,000 in an options wager on robinhoods system. his account was actually $16,000 in credit but kearns might have misread the sum total possible lack of one side of the choices trade as their stability. robinhood stated it would replace the means it shows user information following the demise.
Inside uk, robinhood would have come up against local operators eg revolut, freetrade and trading 212. all offer free trades and have now mimicked robinhoods slick interface and marketing targeted at millennial users.