Robinhood Launches Margin Investing in the UK

Our competitive rates for UK customers range from 5.2% to 6.25%

At Robinhood, we’re empowering our customers with the tools they need to navigate the financial markets. Today, we’re excited to build upon that effort for customers in the UK by announcing the launch of margin investing, with some of the most competitive rates in the industry. 

Margin investing allows customers to borrow money from Robinhood, leveraging their existing holdings to purchase additional securities in order to expand and diversify their portfolio. Margin investing gives customers increased buying power based on the value of assets in their investment account serving as collateral. Historically, UK retail investors have had challenges accessing features like margin investing that provide other ways to help maximise their investments. Traditional brokerage firms often impose high fees and reserve competitive rates for the ultra-wealthy, leaving everyday investors with limited options.

Here are the rates customers who apply and are approved to trade on margin can expect with Robinhood in the UK:

• 6.25% for up to $50K 
• 6.05% starting at $50K and up to $100K
• 5.75% starting at $100K and up to $1M
• 5.50% starting at $1M and up to $10M
• 5.45% starting at $10M and up to $50M
• 5.20% starting at and above $50M

“With the launch of margin investing, we’re giving our UK customers even more flexibility and tools to enhance their investing strategies,” said Jordan Sinclair, President of Robinhood UK.  “At Robinhood we understand that investors want access to expand and diversify their portfolios at industry leading rates, in an amazing user experience.”

Tools For the Modern UK Investor

Since we launched our UK app in March, customers have told us they love no commission fees and no FX fees on trades, saying “that’s what makes all the difference.” They also enjoy the additional protections they receive such as the $2.5M in FDIC insurance on their uninvested cash through our Brokerage Cash Sweep Program (swept to the program banks listed here). Still, we recognise that all investors have different wants and needs, which is why we’re committed to introducing new features and services such as margin investing that resonate with local customers.

Margin can be a useful investing tool that provides flexibility if a customer sees an opportunity in the market and wants to invest more right away without needing to deposit cash from their bank. Margin investing access isn’t automatic—customers must apply and will only have access if they meet eligibility requirements. Once a customer is approved to trade with margin, their rate is automatic based on the margin loan balance of their account. 

Availability

We’re beginning to roll out margin investing for customers in the UK starting today with broader availability expected in the coming weeks. Customers can apply for access to margin investing in a few minutes in-app. Our competitive rates are available for all customers who apply and are approved to trade on margin. 

Disclosures: 

All investing involves risk, including loss of principal.

Margin investing is a high risk product. Leverage can magnify your losses and you could lose more than your initial capital. You must repay your margin loan and any interest charges, which may result in the sale of securities. Before using margin, you must determine whether this type of trading strategy is right for you given your specific investment objectives, investment experience, your understanding of margin investing, risk tolerance and financial situation.

Cautionary Note Regarding Forward-Looking Statements

This blog post contains forward-looking statements, including with respect to the launch of margin investing in the UK by Robinhood U.K. Ltd, a wholly owned subsidiary of Robinhood Markets, Inc. (together with its consolidated subsidiaries, “we,” “our,” “Robinhood,” or the “Company”), and our strategic and operational plans, including (among others) statements regarding that we’re beginning to roll out margin investing for customers in the UK starting today with broader availability expected in the coming weeks. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this blog post. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: our limited operating experience at our current scale; the difficulty of managing our business effectively, including the size of our workforce; the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; the difficulty of complying with an extensive, complex, and changing regulatory environment and the need to adjust our business model in response to new or modified laws and regulations; the possibility of adverse developments in pending litigation and regulatory investigations; the effects of competition; our need to innovate and invest in new products, services, technologies, and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; and our need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements are made as of the date of this blog post, October 21, 2024 and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this blog post whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this blog post with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.