Robinhood UK review | Robinhood paused its launch in the UK - Finder UK

Robinhood UK review

Robinhood has paused its launch in the UK indefinitely.

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Robinhood

Robinhood’s launch in the UK

In 2020, Robinhood announced that it was postponing its launch in the UK indefinitely. If you’re looking for alternative trading apps, check out our guide to the UK’s alternatives to Robinhood.

Robinhood was originally intending to launch in the UK, but it decided back in July 2020 to postpone its launch indefinitely.

It’s America’s answer to Revolut and Freetrade and lets customers invest in a large range of US-based stocks and ETFs, with no commission or foreign exchange fees.

What is Robinhood?

Robinhood is a US financial services company founded in 2013 that offers commission-free stock investing and cryptocurrency investing. It currently lets customers invest in over 3,500 US stocks and another 1,000 global stocks, and has recently launched with early access in the UK.

Robinhood trading hours

As you’ll be investing in the US stock market, you’ll only be able to make trades based around US market hours. However, Robinhood offers extended trading hours to those using the app, which means you’ll be able to trade during the following hours:

  • 2pm to 11pm GMT

Robinhood app

Robinhood app

The Robinhood app is designed to be intuitive and easy-to-use, especially for those with little experience reading trading charts. You’ll be able to deposit and withdraw funds, buy and sell stocks, as well as track and manage your portfolio using the app.

What else does Robinhood offer?

Robinhood Gold. If you want access to Level II market data, professional research reports and margin trading, you can upgrade to a Robinhood Gold account. You will need to pay a monthly fee in order to upgrade.

Robinhood fees and charges

Robinhood charges no commission or foreign exchange fees. While your money will be converted into dollars when you make a deposit, there will be no additional conversion fees or commissions.

  • Robinhood Gold. There is a $5 per month charge to upgrade to Robinhood Gold.

Am I eligible?

If you want to get a Robinhood account in the UK, you’ll need to meet the following criteria:

      • You’re at least 18 years old.
      • You have a valid National Insurance Number.
      • You’re a UK resident.

Is Robinhood safe?

Robinhood is authorised and regulated by the FCA and is a member of SIPC, meaning your investments are protected up to $500,000 (including $250,000 in cash) if the company was to fold.

As with any form of investing, there is no guarantee of returns, and you may end up with less than you initially invested.

Robinhood customer reviews

As Robinhood is a new service, there aren’t many customer reviews for it available online. On customer review site Trustpilot, Robinhood has 2 out of 5 stars, giving it a rating of Poor (based on 29 reviews).

Some customers did comment on the ease of sign up, but most reviews complained of technical issues causing them to lose money on their funds and a lack of customer service when things go wrong (updated 30 March 2020).

Pros and cons of Robinhood UK

Pros

  • Intuitive and easy-to-use app
  • £1 account minimum
  • No commission or foreign exchange fees
  • Investing may offer better returns than savings account
  • Can buy US stocks and ETFs, as well as some global stocks

Cons

  • Your capital is at risk
  • Mainly limited to US exchange stocks
  • Trading based on US market hours
  • Your money must be converted into US dollars in order to trade
  • Some products not currently available in the UK
  • No ISA or pension option

Our verdict

It’s pretty dissapointing news that Robinhood has halted its launch in the UK, as it was highly anticipated by UK investors. There are some great alternatives if you’d still like a platform that offers the same as Robinhood. Check out some similar platforms below.

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Compare similar trading platforms

Table: sorted by promoted deals first
Data updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
UK: £2.95
US: $3.95
EU: €3.95
N/A
£0
Your first 100 trades are free with Fineco (T&Cs apply)
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. The minimum deposit with Fineco is £0. Capital at risk.
eToro Free Stocks
£0
N/A
£0
Capital at risk. 0% commission but other fees may apply. The minimum deposit with eToro is $500.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
£0
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. The minimum deposit with HL is £1. Capital at risk.
Degiro Share Dealing
UK: £1.75 + 0.014% (max £5)
US: €0.50 + $0.004 per share
N/A
£0
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. The minimum deposit with Degiro is £0. Capital at risk.
interactive investor Trading Account
£7.99 (with one free trade per month)
N/A
£9.99 per month
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. The minimum deposit with ii is £0. Capital at risk.
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Compare up to 4 providers

Data updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
interactive investor Stocks and Shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Moneyfarm helps you meet your investment goals with fully-managed portfolios designed around you. Capital at risk.
Hargreaves Lansdown Stocks and Shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
Saxo Markets Stocks and Shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell Stocks and Shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity Stocks and Shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Legal & General stocks and shares ISA
Legal & General stocks and shares ISA
£100 or £20 a month
0.61%
N/A
Legal & General is a big financial services company which offers insurance, lifetime mortgage, pensions and stocks and shares ISAs. Capital at risk.
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Compare up to 4 providers

Data updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
Interactive Investor Pension
Any lump sum or £25 a month
Over 3,000 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Moneyfarm Pension
£1,500 (initial investment)
7 funds
0.35%-0.75%
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100 or £25 a month
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
Penfold
Penfold
No minimum
4 portfolios
0.75-0.88%
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
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Compare up to 4 providers

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

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2 Responses

    Default Gravatar
    PhilFebruary 15, 2020

    Will I pay tax on my capital gains if I don’t withdraw any money every year , or is there a ISA option ? With robinhood

      Avatarfinder Customer Care
      TomFebruary 17, 2020Staff

      Hi Phil,

      Thanks for your question. You don’t pay tax on unrealised gains, which means any assets or investments that have made a profit but you haven’t sold. You only need to pay tax when you sell an asset, so if you make an investment and don’t sell, you won’t need to pay any tax until you do so.

      In the UK, you also only have to pay capital gains tax on any gains above your tax-free allowance each year. This is called the Annual Exempt Amount and is currently £12,000. This means you won’t pay any tax on any realised gains up to £12,000. If you make more than that, you’ll have to pay tax on any gains you make once you sell.

      Unfortunately Robinhood don’t currently offer an ISA option.

      I hope this helps, but please let me know if you have any other questions.

      Regards,

      Tom

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