In a significant move, Robinhood Markets announced on March 21 that Baiju Bhatt, the co-founder and chief creative officer, is stepping down from his executive role. Bhatt’s departure comes after more than a decade of leading the company, which has been instrumental in popularizing commission-free trading, as per Reuters.
Meanwhile, Robinhood has expanded its commission-free trading services to the UK, making over 6,000 US-listed stocks accessible to British customers through its app. However, the company’s plans to introduce margin lending in the UK have been put on hold as discussions with regulators continue, according to Bloomberg.
The Silicon Valley-based fintech giant has been actively diversifying its offerings, venturing into new markets and introducing products such as retirement accounts, credit cards, crypto, and cash accounts. This expansion comes after a period of waning trading activity following the pandemic-induced boom that fueled enthusiasm for meme stocks and boosted Robinhood’s revenues, the Bloomberg report added.
In the UK market, Robinhood aimed to capitalize on the growing interest in domestic equities. Jordan Sinclair, Robinhood UK’s president, highlighted the increasing discussions and momentum around increasing market participation, particularly with the Chancellor’s emphasis on the topic.
Popular holdings among Robinhood’s customers in recent months have included tech giants like Apple Inc., Amazon.com Inc., and Nvidia Corp. The brokerage offers UK customers attractive features, such as 5 per cent interest on uninvested cash, trading outside market hours, zero trading commission, and no foreign exchange fees on trades. Additionally, Robinhood has launched rewards and referral programs for its UK user base as per the report.
While Robinhood already offers margin investing to eligible US customers, with a standard margin interest rate of 12 per cent, its plans to introduce this service in the UK are currently on hold as discussions with regulators continue, the Bloomberg report further added.
(With Inputs from Agencies)
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Published: 22 Mar 2024, 07:45 AM IST