California-based fintech Robinhood has put an indefinite delay on the launch of its stock-trading app in the UK.
The firm had a waiting list in place for users on this side of the pond, but has told them that expansion plans have been put on hold, with the main focus being redirected to its home market.
The company, a pioneer in commission-free investing, had already secured broker authorization from FCA regulators a year ago, paving the way for the release of the Robinhood app over here. The software would have been pitted against the likes of fellow fintech startups Revolut and Freetrade.
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Despite its withdrawal from the UK, Robinhood continues to grow and was valued at $8.6 billion after attracting an additional $320 million in investment earlier this month. In the last four years since its inception, Robinhood has built up over 13 million users who’ve seen the appeal of first-time dealings in investments.
Robinhood has a small team based in the UK, but most of those will now be relocated to join US teams on building up the domestic business. In the meantime, the UK website is set to be closed down and any customer addresses held on the company’s systems will be deleted.
While business has boomed during the coronavirus pandemic the company has not been without its negative press. Robinhood was forced to take steps to make it harder for users to access options trading following the suicide of a 20-year-old trader who claimed he lost $730,000 via the free trading app. Robinhood also made a $250,000 donation to the American Foundation for Suicide Prevention as a result.
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- Via: CNBC