Robinhood launched its long-awaited desktop platform in its mobile app on Wednesday and added futures and index options trading capabilities to its mobile app as the fintech company aims to get markets from traditional brokers Share.
The 11-year-old commission-free trading app became synonymous with couple investors in 2021 and is now seeking to mature into a full-fledged financial services provider and compete with established brokerage firms serving institutional investors.
The Menlo Park, California-based company said its desktop trading platform, known as “Robinhood Legend,” will focus on active traders.
“We have matured with our clients and have clearly heard that they want to use more advanced products and more active trading tools,” Chief Brokerage Officer Steve Quirk told Reuters.
“Our long-term goal is to make Robinhood the primary financial services company that meets all customer needs.”
The platform does not need to be additionally provided and will provide advanced trading tools, real-time data, and custom and preset layouts.
Meanwhile, the app will allow users to trade futures on benchmarks such as the S&P 500, oil and Bitcoin. Customers can also trade index options
Fight for market share
Long dominated by high-profile names like Vanguard, Charles Schwab and Fidelity Investments, the U.S. brokerage industry brokerage for the first time in decades when the Robinhood pioneered the committee-free deal in 2013.
For a decade, Robinhood is expanding to accommodate more experienced investors. Futures and options trading is often the field of large banks, hedge funds and asset managers due to higher profit margins, volatility, complexity and increased commissions.
Subscribers to Robinhood’s premium gold tier will be able to trade futures at a price of 50 cents per contract, while non-gold users will be required to pay a commission of 75 cents.
By comparison, Schwab’s fee is USD 2.25 per contract (approximately Rs 190), while Morgan Stanley’s E*Trade’s futures fee is USD 1.50 (approximately Rs 126) and cryptocurrency futures charges USD 2.50 (approximately Rs 210).
Robinhood’s index option fee is 35 cents per contract for Gold members, while others are 50 cents, which is also lower than industry peers.
As of June 30, the company had 11.8 million active users per month and 1.98 million premium “gold” customers.
Analysts have previously said Robinhood may move with caution if retailers charge fees, but it may also create new opportunities for expanding its market share.
Earlier this year, the company was committed to expanding profit margins while focusing on driving “profitable growth” in 2024. Profits for three consecutive quarters have also strengthened investors’ enthusiasm, leading to stock returns of more than 100% in youth.
©Thomson Reuters 2024
(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
