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Robinhood UK
Review 2025
Overview, highlights & more!
What will you find in this review:
Overview of Robinhood UK
Founded in 2013 by Vladimir Tenev and Baiju Bhatt, the broker originally intended to launch in the UK back in July 2020, but decided to postpone its launch indefinitely.
Now, they have announced their intention to take advantage of the UK market and are bringing their arsenal of offerings to British investors. America’s answer to InvestEngine and Freetrade provides customers with access to investing in a large range of US-based stocks and ETFs, with no commission or foreign exchange fees.
The information provided on this page and throughout the website is for general information purposes only and does not constitute financial advice. It is important that you conduct your own research and consider your own personal circumstances before making any investment decisions.
It's important to note that this review is tailored for the potential UK users of Robinhood.
The platform can be joined via a waitlist. Once you create an account, you can start trading over 6,000 US stocks and ADRs from as little as $1 with no commission or foreign exchange fees.
The company also entered the UK market with another interesting offering - a 5% AER on uninvested cash and 24-hour trading on US stocks.
Continue reading to find out more!
Platform Highlights
| 🗺️ Supported Countries | US, UK, EU (cryptocurrencies only) |
| 📊 Stocks and ETFs fees | £0 commission |
| 💲FX conversion fees | £0 FX fee |
| ⏳ Inactivity fee | £0 |
| 🏧 Withdrawal fee | £0 |
| 💵 Minimum Deposit | £0,01 |
| 💡 Products offered | Stocks and ADRs (under UK entity) |
| 🎮 Demo Account | No |
| 📜 Regulatory entities | FCA, SEC, FINRA |
Offering for UK Investors
When you join Robinhood UK, your uninvested cash can earn up to 5% AER, with no cap and the flexibility to withdraw anytime. The cash is automatically moved to deposits in a network of program banks, offering FDIC insurance of up to $2.25 million, with $250,000 per program bank. However, note that the UK Financial Services Compensation Scheme (FSCS) does not apply.
Opening an account allows you to trade over 6,000 US stocks and ADRs starting from just $1, without commission or foreign exchange fees. It's a user-friendly platform with certain risks to consider, especially concerning fractional shares, which are illiquid outside of the platform.
Robinhood Securities LLC is a member of SIPC, safeguarding securities for customers up to $500,000. Keep in mind that the UK Financial Services Compensation Scheme (FSCS) does not apply here.
One notable feature is the 24-hour market, enabling you to trade popular US stocks like TSLA, AMZN, and AAPL round the clock, five days a week. However, trading outside of US market hours comes with added risks such as increased price volatility and lower trading volume. It's crucial to be aware of these factors before engaging in such trades.
Overall, the UK entity offers an accessible and commission-free trading experience, coupled with features like 24-hour market access and attractive interest rates on uninvested cash, making it an enticing option for UK investors venturing into the US stock market.
Advantages
Attractive interest rate for uninvested cash
$1 minimum investment amount
£0.01 minimum deposit
No commission or foreign exchange fees
Users can buy US stocks 24 hours 5 days a week
Disadvantages
Funds must be converted into US dollars to trade
Only US stocks and ADRs available to UK clients
No ISA or tax-relieved accounts
Low liquidity on extended trading hours trading
Assets are not protected by the UK Financial Services Compensation Scheme (FSCS)
Ready to start investing with Robinhood already?
Investments can fall and rise,
your capital is at risk.
Investments can fall and rise,
your capital is at risk.
Robinhood UK Markets
The UK entity exclusively provides access to the following markets:
- NASDAQ
- New York Stock Exchange (NYSE)
- London Stock Exchange (LSE)
- Toronto Stock Exchange (TSX)
- Japan Exchange Group (JPX)
- Euronext
- Deutsche Börse Xetra
- NASDAQ Copenhagen
- Frankfurt Stock Exchange
- SIX Swiss Exchange
- NASDAQ Nordic
However, it's essential to note a significant limitation – investments are restricted to US-listed stocks only. This could be disappointing for those interested in British companies’ stocks or seeking opportunities in diverse global markets. While this is a notable drawback, if your primary focus is on US stocks, Robinhood UK offers a substantial selection, boasting more than 6,000 different options available 24/5
American Depositary Receipts (ADRs) for over 650 globally-listed companies. The ADRs are listed on US exchanges or the Over-the-Counter (OTC) Market (see the stock detail pages for further information).
Fee Structure at a Glance
The broker boasts a fee structure that is completely free of any commissions at first glance.
| Webull fee structure: | Fee |
|---|---|
| Minimum deposit | £0,1 |
| Standard platform charge (monthly) | £0 |
| U.S. Listed & OTC stocks fee | £0* |
| American Depositary Receipts (ADRs): | Some are subject to fees (fee information for a specific ADR may be obtained from that ADR's custodial bank). |
| Forex conversion fee | 0%** |
| Deposit fee | £0 |
| Withdrawal fee | £0 |
| Inactivity fee | £0 |
*It is clarified that Regulatory Trading Fees that are set by US law and regulation and are subject to change without notice. Robinhood advises clients to always check the posted Fee Schedule before placing trades in their account.
**The broker does not charge FX fees, but implicit third-party costs of 0.03% are included in the applicable GBP/USD exchange rate
Starting January 1st, 2024, Robinhood seems to be introducing a Trading Activity Fee - this will amount to $0.000166 per share and will be applicable for sell orders only. The fee is rounded up to the nearest penny and will be no greater than $8.30 per trade.
As of March 2024, this hasn't been implemented.
Overall, the fee structure is notably customer-friendly, with no minimum deposit, no monthly platform charge, and zero fees for U.S.-listed and OTC stocks. The absence of deposit, withdrawal, and inactivity fees adds to its appeal. However, users should be aware of the newly introduced Trading Activity Fee for sell orders, starting January 1st, 2024.
Robinhood's customer support:
| channels: | |
|---|---|
| Phone Assistance | Yes |
| Email Support | No |
| Chat Support | Yes |
| Community or Forum | No |
| channels: | |
|---|---|
| Phone Assistance | Yes |
| Email Support | No |
| Chat Support | Yes |
| Community or Forum | No |
The customer support is designed for convenience, offering live assistance through phone and chat for queries related to stock trades, deposits, withdrawals, and more.
The platform prioritizes transparency by notifying users about their call queue position and displaying Robinhood Support’s caller ID with the phone number.
Moreover, the accessibility of support chat history within the app or on the web contributes to a seamless and user-friendly support experience, ensuring users can easily track and revisit their interactions for added clarity and assistance.
When it comes to customer reviews, it is still yearly to share significant results for the UK entity.
However, the app has over 4.2M reviews on the App Store with an average rating of 4.2 stars.
Google Play Store shows a rating of 4.1 stars after 479K reviews of the app.
Account Setup Process
To join, you need to sign up for the waitlist by providing your email address. There’s an additional perk to speed up your access – refer friends using your unique link, and every friend who joins the waitlist through your link moves you up the queue. Importantly, there’s no commitment or obligation when joining the waitlist.
Once the platform launches in the UK, you’ll receive an email notification with instructions to download the app and create your account. The UK entity is authorized and regulated by the Financial Conduct Authority, ensuring a secure and regulated environment for UK investors.
To apply for an account, you’ll need to meet the following requirements:
- Be 18 years or older
- Have a valid National Insurance number
- Have a UK bank account
- Have a UK residential address
- Be a UK resident for income tax purposes
- Not a US person
- What you need to get started has more details.
Robinhood Margin vs. Non-Margin Accounts: A Comprehensive Review
The popular online stock broker platform offers two types of brokerage accounts: margin and non-margin. Each account type has its own set of advantages and disadvantages, making it crucial to choose the one that best suits your investing goals and risk tolerance.
Margin Accounts
Margin accounts are the default option for users. They offer several benefits, including:
- Trading with unsettled funds: With a margin account, you can start trading with the proceeds from stock sales immediately, eliminating the need to wait for funds to settle (2 trading days for stocks).
- Unlimited day trades: Margin accounts are not subject to pattern day trading regulations, which limit the number of day trades you can make in a rolling 5-day period.
- Margin investing (optional feature): Subject to eligibility criteria, margin investing allows you to borrow money from the broker to purchase securities, effectively leveraging your holdings to increase your buying power.
However, margin accounts also carry some risks, including:
- Higher potential for losses: Margin trading can amplify both gains and losses, making it riskier than trading with non-margin funds.
- Borrowing costs: Interest charges apply on borrowed funds, potentially increasing your overall trading costs.
- Regulatory restrictions: Margin accounts are subject to additional regulatory requirements, such as margin maintenance requirements.
Non-Margin Accounts
Non-margin accounts offer a simpler and more conservative trading experience, with the following benefits:
- No trading with unsettled funds: Unlike margin accounts, non-margin accounts require you to wait for funds to settle before trading, ensuring the funds are fully available before purchasing securities.
- No day trading restrictions: Non-margin accounts are not subject to pattern day trading regulations, allowing you to engage in as many day trades as you wish.
- Lower risk: Non-margin trading minimizes the risk of margin calls and potential losses due to borrowed funds.
Switching Between Margin and Non-Margin Accounts
You can easily switch between margin and non-margin accounts within your account by following these steps:
- Navigate to the Account menu (3 bars or gear icon) in the app.
- Select Investing.
- Scroll down to Account type and choose either Switch to margin account or Switch to non-margin account.
Conclusion: Choosing the Right Account Type
The choice between a margin and a non-margin account depends on your trading style and risk tolerance.
Margin accounts offer greater flexibility and potential for gains but involve higher risks and stricter regulatory requirements. Non-margin accounts are more conservative, but they may limit your trading opportunities.
Platform & Tools
To start with, the app available to UK investors will have a basic set of investing tools.
Stock Screeners
Unlock the power of stock screeners on the platform to refine your investment strategy.
Here’s what you need to know:
- Preset and Custom Screeners:
- Utilize preset screeners or craft your own to align with your investment goals.
- Utilize preset screeners or craft your own to align with your investment goals.
- Filter Options:
- Choose from over 20 filters to fine-tune your stock search. Some key filters include:
- Relative 52-week high/low: Identify stocks nearing their highest or lowest prices in the past year.
- Average volume: Gauge the daily trading activity over the last 30 days.
- Market cap: Assess a company’s size in the market.
- Analyst ratings: Stay informed with ratings from independent research firms.
- Dividend yield: Evaluate how much a company pays in dividends relative to its share price.
- Options volume: Identify stocks with active options trading.
- Tailor Your Search with Custom Filters:
- Craft a custom stock screener by combining multiple filters for a targeted approach.
- Craft a custom stock screener by combining multiple filters for a targeted approach.
- Ease of Comparison:
- Assess stocks based on various factors like price-to-earnings ratio, earnings date, and implied volatility.
- Assess stocks based on various factors like price-to-earnings ratio, earnings date, and implied volatility.
- Sector Specifics:
- Dive into specific industries by filtering stocks based on sectors.
- Dive into specific industries by filtering stocks based on sectors.
- Stay Updated:
- Track daily % changes to stay informed about recent price movements.
With the intuitive stock screeners, finding your next trade has never been more efficient. Tailor your search to match your unique investment criteria and make informed decisions.
Charting Feature
While the platform offers limited features initially, its charting feature stands out as a basic yet functional tool for beginner investors.
1. Key Features of the Charting Feature:
- Versatility: The charting feature allows you to view charts of individual stocks, indices, and Exchange-Traded Funds (ETFs). This flexibility caters to a wide range of investment interests.
- Customization: allows you to personalize your charts with various timeframes, indicators, and drawing tools. This adaptability enables you to tailor the charts to your specific trading style and preferences.
- Responsiveness: The charts seamlessly adapt to different screen sizes, ensuring a consistent viewing experience across both desktop and mobile devices. This responsiveness is particularly beneficial for mobile traders who frequent their smartphones and tablets.
- Intuitiveness: designed with ease of use in mind, making it accessible to novice investors with limited technical expertise. The intuitive interface simplifies the interpretation of charts and promotes informed trading decisions.
2. Suitability for Beginner Investors:
Particularly well-suited for beginner investors seeking a straightforward and user-friendly tool to visualize stock price movements. Its basic yet functional nature aligns with the needs of those new to the market who may not require the complexities of more advanced charting platforms.
While more experienced investors may prefer a more sophisticated charting tool with enhanced technical indicators and analytical capabilities, the offering remains sufficient for most users seeking a straightforward visual representation of stock prices.
3. Overall Impression:
The feature is a valuable addition to the platform, providing beginner investors with a simple yet effective tool to analyze stock price movements. Its versatility, customization options, responsiveness, and intuitive interface make it a user-friendly option for those new to the market. While more experienced investors may seek more advanced charting tools, this offering remains adequate for most users.
Regulatory safeguards
Robinhood U.K. Ltd (Robinhood UK) is an integral part of Robinhood Markets, a US-based company with a diverse range of business operations. When you open an account, you’ll be served by both the UK entity and Robinhood Securities LLC, the trusted US clearing firm. A clearing broker manages your investments (cash and securities) and ensures the smooth execution and settlement of your trades.
Upon placing an order through the app, the UK entity receives and relays it to Robinhood Securities, which engages directly with the market, enabling you to invest in US stocks.
Robinhood UK is officially recognized and regulated by the Financial Conduct Authority (FRN: 823590). You can also find them on the FCA register.
Frequently Asked Questions
Conclusion
The UK branch of the broker has entered the local market with a range of attractive features, including commission-free trading on US stocks, a user-friendly app, and a generous 5% AER on uninvested cash.
The CEO, Vlad Tenev has also recently commented on the launch, as well as market opportunities. Watch the video on Bloomberg’s YouTube channel here.
While the platform does have some limitations, such as restricted access to UK stocks and limited market data, it remains a compelling option for beginner and experienced investors alike.
Here are the key takeaways from our review of the UK entity:
- Commission-free trading: the broker stands out by offering commission-free trading on US stocks, ETFs, and fractional shares. This is a significant advantage over other UK brokers, who typically charge fees for trading stocks.
- User-friendly app: widely praised for its ease of use and intuitive interface. This makes it a great choice for beginner investors who are new to trading.
- Generous interest on uninvested cash: a very generous 5% AER. This is a great way to earn extra money on your cash reserves.
- 24-hour trading: users can trade US stocks 24 hours a day, 5 days a week. This is a great advantage for traders who want to take advantage of market opportunities outside of regular trading hours.
- Low minimum deposit: the broker has a very low minimum deposit requirement of just £0.01. This makes it a great option for investors who want to start small.
- Fractional shares: users are able to buy fractional shares of stocks, which means you can invest in stocks even if you don’t have enough money to buy a whole share. This is a great way to invest in stocks of companies you believe in, even if you don’t have a lot of money to spare.
- Wide range of investment tools: the platform offers a variety of investment tools, including stock screeners, charts, and news. This can help you make informed investment decisions.
Overall, the UK entity can be a promising platform for local investors. It has a number of attractive features that make it a great choice for both beginner and experienced investors.
Here are some of the potential drawbacks:
- Limited access to UK stocks: only offers access to a limited number of UK stocks. This is a significant drawback for investors who want to invest in UK-based companies.
- Limited market data: the company’s market data is not as comprehensive as some other UK brokers. This can make it difficult to make informed investment decisions.
- No ISA or tax-relieved accounts: does not offer ISA or tax-relieved accounts. This means that you will not be able to benefit from tax advantages when investing with the UK entity.
- Assets are not protected by the FSCS: User assets are not protected by the FSCS. This means that your investments are not insured up to £85,000 in the event of a broker failure.
Despite these drawbacks, the UK entity remains a promising platform for UK investors. It could be a good choice for investors who are looking for a commission-free, user-friendly platform focused on US stocks.
However, investors should carefully consider the risks involved before investing with Robinhood UK.
