Robinhood (HOOD.O) has officially launched its long-anticipated desktop trading platform and introduced futures and index options trading features to its mobile app, as the fintech company aims to capture market share from traditional brokerages.
The platform, named Robinhood Legend, is tailored for active traders and marks a significant step in the company’s evolution from a commission-free trading app popular among retail investors in 2021 to a comprehensive financial services provider competing with established firms that cater to institutional clients.
“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,” said Steve Quirk, Chief Brokerage Officer at Robinhood, in an interview with Reuters. “Our long-term goal is for Robinhood to be the primary financial services company that meets all of our customers’ needs.”
Available at no extra cost, the new desktop platform offers advanced trading tools, real-time data, and customizable layouts. Meanwhile, the updated mobile app will allow users to trade futures on major benchmarks, including the S&P 500 (.SPX), oil, and bitcoin, in addition to options on these indices.
The U.S. brokerage industry, long dominated by giants like Vanguard, Charles Schwab (SCHW.N), and Fidelity Investments, faced disruption with Robinhood’s introduction of commission-free trading in 2013. Now, a decade later, Robinhood is catering to more seasoned investors by venturing into futures and options—trading typically reserved for large banks and hedge funds due to their complexity and higher margin requirements.
Robinhood’s premium Gold subscribers can trade futures for as low as 50 cents per contract, while non-Gold users will incur a commission of 75 cents. In comparison, Schwab charges $2.25 per contract, and Morgan Stanley’s E*TRADE charges $1.50 for futures and $2.50 for crypto futures. For index options, Robinhood’s fees are set at 35 cents per contract for Gold members and 50 cents for others, which also undercuts industry competitors.
As of June 30, Robinhood reported 11.8 million monthly active users and nearly 2 million premium Gold customers. Analysts suggest that while retail traders may approach futures trading with caution due to potential fees, this expansion could create significant opportunities for Robinhood to increase its market share.
Earlier this year, the company committed to expanding margins while focusing on “profitable growth” in 2024. With three consecutive quarters of reported profits, investor enthusiasm has surged, contributing to a stock price increase of over 100% year-to-date.
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