Search Mark
Home / Industry Dynamics

Robinhood Halts Margin Investing In U.K. Launch

Today’s News 

The page about margin investing service on Robinhood's U.K. website was listed as unavailable in the U.K. by Monday evening. 

Image Source: Forbes
The page about margin investing service on Robinhood’s U.K. website was listed as unavailable in the U.K. by Monday evening. 
Image Source: Forbes 

Trading app Robinhood has decided to delay its plans to offer margin investing to customers in the U.K. while it engages in further discussions with regulators. This decision comes as Robinhood launches its U.K. business, initially intending to provide leveraged trading options.  

Margin investing, a risky practice where customers borrow money to amplify their trades, was set to be a feature with an interest rate of 12%. However, a page detailing this service on Robinhood’s U.K. website became unavailable in the U.K. by Monday evening.  

A spokesperson for Robinhood stated that margin investing is on hold as they continue discussions with regulators, without specifying the regulator or providing further details. The U.K.’s Financial Conduct Authority declined to comment on the regulatory exemption or its status for Robinhood. 

Previously, Robinhood had abandoned plans for a U.K. launch in 2020 but announced a renewed effort in November. The U.K. arm of Robinhood will enable customers to purchase U.S. stocks, excluding those of companies listed elsewhere, and will not charge commission or FX fees on trades.  

Additionally, it will offer a 5% interest rate on uninvested cash. Jordan Sinclair, CEO of Robinhood U.K., refrained from commenting on the profitability timeline or revenue sources for the U.K. arm, mentioning that it would mirror revenue models in the U.S., possibly including a subscription service and income from cash interest. 

Despite a surge in popularity among U.S. retail investors during the 2021 meme stock trading frenzy, Robinhood’s shares have declined by nearly 50% since its IPO in 2021, reflecting a cooling of the retail trading fervor. 

Other News

SEC Fines Advisers For AI Misrepresentation 

Two investment advisers, Delphia Inc and Global Predictions Inc, agreed to pay USD 400,000 in combined fines to settle SEC charges for making false claims about their use of artificial intelligence. 

Fosun Considers Sale Of Portuguese Bank Stake 

Fosun International is contemplating selling its remaining stake in Portugal’s Millennium bcp to enhance working capital, with potential buyers approached including BBVA and CaixaBank.  

Alphabet, Tesla Lift Stock Market Amid Rate Cut Concerns 

Alphabet and Tesla led a market surge despite rate cut worries. Alphabet surged 4.6% on reports of its AI engine potentially being used in Apple’s iPhone, while Tesla jumped 6.3%, though still down 30% for the year. 

Share to

Industry Dynamics

Dollar's Surge: Fed's Rate Divergence Sparks Accelerated Rally 

Today’s News  A surge in the value of the U.S. dollar has gained momentum, propelled by contrasting outlooks on interest rates in the United States. This rise comes amidst growing uncertainty regarding the Federal Reserve’s ability to aggressively cut rates this year in comparison to other global central banks. The U.S. dollar index, which gauges […]

2024-4-16 | Industry Dynamics

U.S. Economy Poised For Continued Growth 

Today’s News  The latest Wall Street Journal survey paints a notably optimistic picture of the U.S. economy, with economists revising their growth forecasts upward. The likelihood of a recession in the coming year has dwindled, now standing at 29%, a significant drop from 39% in January.   This marks the lowest probability since April 2022. […]

2024-4-15 | Industry Dynamics

Weekly Economic Calendar For April 15th, 2024 – April 19th, 2024

Weekly Economic Calendar For April 15th, 2024 – April 19th, 2024.

2024-4-12 | Industry Dynamics