By Manya Saini and Niket Nishant
(Reuters) – Robinhood (NASDAQ:) launched its long-awaited desktop platform and added futures and index choices buying and selling options to its cell app on Wednesday, because the fintech agency goals to take market share from conventional brokerages.
The 11-year-old commission-free buying and selling app, which turned synonymous with mom-and-pop traders in 2021, is now searching for to mature right into a full-fledged monetary providers supplier and compete with established brokerages that serve institutional traders.
The Menlo Park, California-based firm stated its desktop buying and selling platform, dubbed ‘Robinhood Legend,’ will deal with energetic merchants.
“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 informed Reuters.
“Our long-term goal is for Robinhood to be the primary financial services company that meets all of customers’ needs.”
The platform, accessible at no further price, will provide superior buying and selling instruments, real-time knowledge, in addition to customized and preset layouts.
In the meantime, the app will permit customers to commerce futures on the benchmark , oil and bitcoin, amongst others. Prospects also can commerce index choices
BATTLE FOR MARKET SHARE
Lengthy dominated by high-profile names like Vanguard, Charles Schwab (NYSE:), and Constancy Investments, the U.S. brokerage trade noticed its first disruption in many years when Robinhood pioneered commission-free buying and selling in 2013.
A decade on, Robinhood is increasing to cater to extra seasoned traders. Buying and selling in futures and choices has usually been the area of huge banks, hedge funds and asset managers, resulting from increased margin necessities, elevated volatility, complexity and commissions.
Subscribers to Robinhood’s premium Gold tier will have the ability to commerce futures for as little as 50 cents per contract, whereas non-Gold customers might want to pay a fee of 75 cents.
This compares with Schwab’s fees of $2.25 per contract, whereas Morgan Stanley’s E*TRADE takes $1.50 for futures and $2.50 for crypto futures.
Robinhood’s charges for index choices, set at 35 cents per contract for Gold members and 50 cents for others, can also be decrease than trade friends.
The corporate had 11.8 million month-to-month energetic customers and 1.98 million premium ‘Gold’ prospects, as of June 30.
Analysts have beforehand stated Robinhood’s entry into futures buying and selling this 12 months could possibly be met with some warning by retail merchants if it fees a price, but it surely might additionally create new alternatives for increasing its market share.
Earlier this 12 months, the corporate had dedicated to increasing margins whereas specializing in driving “profitable growth” in 2024. Three consecutive quarters of reported income have additionally bolstered investor enthusiasm, contributing to a year-to-date inventory achieve of over 100%.
