Inventory buying and selling app Robinhood receives UK dealer license

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Robin Hood, the Silicon Valley-based app for inventory buying and selling that was lately valued by investors at $ 7.6 billion, has acquired approval from UK regulators and has damaged its plans to arrange shops in London (as reported exclusively by TechCrunch 7 months in the past).

Specifically, Robin Hood Worldwide Ltd., a subsidiary of Robinhood, is permitted to function as a dealer (with some limitations) within the UK by the Monetary Conduct Authority, which regulates UK monetary providers. That is making ready Robinhood for a UK launch, though the corporate retains an in depth eye on when precisely that will probably be.

Robinhood additionally declares that it has appointed Wander Rutgers president of Robinhood Worldwide. He joins fintech Plum in London, the place he led the start-up funding and financial savings product, and previous to that point he would have led product, compliance and operational groups at TransferWise.

At Robinhood, Rutgers will lead the UK operations and oversee the brand new London workplace, which has already began with workforce. Sources told me in April that Robinhood was busy hiring a number of UK positions, together with recruitment, operations, advertising / PR, buyer help, compliance and product.

The corporate tells me that it is usually constructing a consumer analysis workforce primarily based in London in order that it could discover the product market higher right here. Coarse constructing a localized model of Robinhood will clearly not work.

In the meantime, information that Robinhood is ramping up its deliberate UK launch is attention-grabbing within the context of native fintech startups who’ve launched their very own free commerce provides.

First out of the gate was positioned in London Free trade, who very early opted for a bona fide & # 39; challenger dealer & # 39; construct, together with acquiring the required license from the FCA, moderately than merely working with a longtime dealer. With the app you possibly can spend money on shares and ETF & # 39; s. Transactions are "free" if you’re happy that your shopping for or promoting transactions are executed each day on the finish of the day. If you wish to execute instantly, the startup fees a low £ 1 per transaction.

And final week Revolut finally launched its free tradable stock trading perform, albeit in the intervening time. In the interim the characteristic is restricted to some Revolut prospects with a premium Steel card (which itself entails month-to-month subscription charges) and covers 300 US shares. The corporate says it plans to broaden into UK and European shares and Alternate Traded Funds sooner or later. Remarkably, I perceive that Revolut doesn’t have its personal dealer license, however cooperates with the American dealer DriveWealth for a part of its know-how and required authorized authorization (it additionally explains why Revolut presently solely supplies entry to US shares).

Freetrade, alternatively, has lengthy claimed that to be able to innovate within the commerce it’s important to construct and personal your entire brokerage stack. It was the primary on this respect underneath the brand new batch of & # 39; free & # 39; UK commerce apps, though others, together with the Netherlands Bux and now Robinhood, have since adopted the identical path. Solely time will inform if Revolut must do the identical.

One other benefit is that Revolut and Robinhood share buyers, specifically Index and DST. That makes for an attention-grabbing subplot when the 2 unicorns invade one another's garden. No battle, no curiosity.

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