Robinhood, a disruptor of the American securities industry, continues to expand in the UK by launching options trading. Announced today (Tuesday), the platform has already begun rolling out options trading for domestic traders, and “expects wide availability (IS) over the next few days.”
The option is a revenue generator
The flagship offering of brokers in California’s major US markets is options trading, but it also offers trading in cash stocks and cryptocurrency.
In the third quarter of 2024, it generated $637 million in revenue, of which $319 million was born from transaction-based activities. Options trading alone brought in $202 million, followed by cryptocurrency and stocks in $61 million and $37 million respectively.
“Trading options has historically been difficult for UK investors to access due to high fees, complex platforms and limited educational resources,” said Robinhood UK president Jordan Sinclair. Masu.
Entering the tough UK market
Robinhood launched options in the UK about a year after introducing brokerage services in the country after two failed attempts. Initially, I tried to start service in the UK in 2020, but it failed. I then tried to get the UK-based trading app Ziglu. However, the transaction did not come true.
The broker initially provides UK customers with the ability to trade options on stocks and indexes. Index options are cash settle and European style as they can be traded until expiration without early allocation risk.
With a promotional offer, the broker will not charge you for orders for options agreements. However, there will then be $0.50 per contract fee.
Meanwhile, Robinhood is expanding its services in the US as well. We are already beginning to develop futures trading. Although they did not specify a date for the wide release of Futures Instruments, the dedicated page on its website indicates that it will introduce futures trading with forex pairs, cryptocurrencies, indexes and goods.
The UK plans to offer localized investment products such as individual savings accounts (ISAs), “innovative tools, products and technologies.
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