According to Bloomberg, the American online brokerage Robinhood will launch commission-free stock trading services in the UK. Currently, users must join a waiting list to have early access, with the goal of fully opening to all UK users by 2024.
This launch will allow Robinhood retail investors in the UK market to trade over 6,000 US-listed stocks and other securities. Additionally, Robinhood plans to start offering cryptocurrency trading services in the European Union in the coming weeks.
In the US, a portion of Robinhood’s revenue comes from payment for order flow (PFOF), a controversial practice that is banned in the UK. In PFOF operations, brokers send customer trading orders to market makers for execution instead of placing orders directly through stock exchanges, earning fees from it.
Robinhood’s co-founder and CEO, Vlad Tenev, stated that the company’s third-quarter trading revenue decreased by 11% year-on-year to $185 million, primarily due to a 55% decline in cryptocurrency trading volume.
Robinhood has diversified its revenue sources through various products such as securities lending and the premium subscription account Robinhood Gold. Tenev mentioned that the company is working on launching a credit card in the US.
In related news, Ark Invest has been increasing its holdings of Robinhood stock while gradually selling shares of the Grayscale Bitcoin Trust (GBTC) since October. According to Cathiesark’s data, Ark Invest’s funds have recently increased their holdings of Robinhood stock while reducing their holdings of the cryptocurrency exchange Coinbase’s stock.
This week, Ark Invest bought a total of 366,657 shares of Robinhood stock (HOOD) through the ARK Fintech Innovation ETF (ARKF), worth approximately $3.27 million.
In addition, as Coinbase’s stock (COIN) rose to $127.82, a gain of over 60%, Ark Invest reduced its holdings of 82,624 shares of Coinbase stock this week through the ARKF fund.