Robinhood, the fintech company used by commission-free trading pioneers, introduced a new desktop trading platform dubbed Robinhood Legend and futures and index options trading on its mobile app this week, as the company expands into full-service brokerage and seeks to differentiate itself from more traditional brokerages. The updated version of its Robinhood app provides active traders with trading tools, live data streams, customisable dashboards and advanced order types at no extra cost. It also offers futures trading including key indices, commodities such as oil or bitcoin, and index options trading.
The move effectively slices fees for customers who use Robinhood to trade futures and options and across its other commission-free transactions. By slashing prices, Robinhood is hoping to attract both novice and seasoned investors, successfully chipping away at the global business that tends to be dominated by large brokerages. The company reported that it ended June with 11.8 million monthly active users and 1.7 million premium ‘Gold’ subscribers. While retail traders might be a bit skittish about the fee costs that come with trading futures on Robinhood, analysts suggest that the move is opportunistic in a bid to gain more market share, as the company pursues ‘profitable growth’ for 2024.
Source: Reuters
