Robinhood launches desktop platform, adds futures and index options trading to app
Set to offer trading in derivatives for lower fees
Aim to be primary financial services provider - exec
By Manya Saini and Niket Nishant
Oct 16 (Reuters) -Robinhood HOOD.O launched its long-awaited desktop platform and added futures and index options trading features to its mobile app on Wednesday, as the fintech firm aims to take market share from traditional brokerages.
The 11-year-old commission-free trading app, which became synonymous with mom-and-pop investors in 2021, is now seeking to mature into a full-fledged financial services provider and compete with established brokerages that serve institutional investors.
The Menlo Park, California-based company said its desktop trading platform, dubbed 'Robinhood Legend,' will focus on active traders.
"We've matured alongside our customers and have heard loud and clear that they want access to more advanced products and more active trading tools," Chief Brokerage Officer Steve Quirk told Reuters.
"Our long-term goal is for Robinhood to be the primary financial services company that meets all of customers' needs."
The platform, available at no additional cost, will offer advanced trading tools, real-time data, as well as custom and preset layouts.
Meanwhile, the app will allow users to trade futures on the benchmark S&P 500 .SPX index, oil and bitcoin BTC=, among others. Customers can also trade index options
BATTLE FOR MARKET SHARE
Long dominated by high-profile names like Vanguard, Charles Schwab SCHW.N, and Fidelity Investments, the U.S. brokerage industry saw its first disruption in decades when Robinhood pioneered commission-free trading in 2013.
A decade on, Robinhood is expanding to cater to more seasoned investors. Trading in futures and options has typically been the domain of large banks, hedge funds and asset managers, due to higher margin requirements, increased volatility, complexity and commissions.
Subscribers to Robinhood's premium Gold tier will be able to trade futures for as low as 50 cents per contract, while non-Gold users will need to pay a commission of 75 cents.
This compares with Schwab's charges of $2.25 per contract, while Morgan Stanley's MS.N E*TRADE takes $1.50 for futures and $2.50 for crypto futures.
Robinhood's fees for index options, set at 35 cents per contract for Gold members and 50 cents for others, is also lower than industry peers.
The company had 11.8 million monthly active users and 1.98 million premium 'Gold' customers, as of June 30.
Analysts have previously said Robinhood's entry into futures trading this year could be met with some caution by retail traders if it charges a fee, but it could also create new opportunities for expanding its market share.
Earlier this year, the company had committed to expanding margins while focusing on driving "profitable growth" in 2024. Three consecutive quarters of reported profits have also bolstered investor enthusiasm, contributing to a year-to-date stock gain of over 100%.
A look at Robinhood's customer base over the years https://reut.rs/3NpHWO3
Robinhood's stock surges in 2024 https://reut.rs/3UbXGIl
Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Shailesh Kuber
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
