Robinhood Launches Margin Trading in the UK

Robinhood has launched margin investing for UK customers, allowing them to borrow against their existing holdings to purchase additional securities, a feature that has been largely inaccessible to retail investors in the UK. This move follows regulatory approval from the Financial Conduct Authority (FCA) and aims to break down barriers to advanced trading tools typically reserved for wealthy investors. The platform offers competitive rates, starting at 6.25% for loans up to $50,000 and decreasing to 5.20% for loans of $50 million or more. Robinhood's entry into the UK market began in March with its commission-free trading app, and it has since introduced additional features, including a securities lending product. The company has gained attention for its role in the meme stock phenomenon, which showcased its appeal among younger, retail investors. Jordan Sinclair, president of Robinhood U.K., emphasized the company's commitment to making investing more accessible and diverse for everyday users.