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 UK review
Robinhood has paused its launch in the UK indefinitely.
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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
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 the 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 disappointing 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. Compare other share trading platforms with our comparison table.
Frequently asked questions
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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
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