Robinhood Expands UK Offerings with Margin Investing

The new feature allows customers to borrow money from Robinhood to purchase additional securities, leveraging their existing holdings as collateral.

The new feature comes after the product’s recent approval following Robinhood’s recent discussions with the UK financial regulator, the Financial Conduct Authority (FCA).

With rates starting at 5.2%, Robinhood said it aims to provide UK investors with a more flexible and accessible way to invest.

“Historically, UK retail investors have had challenges accessing features like margin investing that provide other ways to help maximise their investments,” said Robinhood. “Traditional brokerage firms often impose high fees and reserve competitive rates for the ultra-wealthy, leaving everyday investors with limited options.”

Jordan Sinclair, President of Robinhood UK, said that with the launch of margin investing, the company is giving its UK customers even more flexibility and tools to enhance their investing strategies.

Robinhood’s UK app already offers features such as no commission fees, no FX fees, and FDIC insurance on uninvested cash.

The brokerage explained that to access margin investing, customers must apply and meet eligibility requirements. Once approved, the rate will be determined automatically based on their margin loan balance.

Robinhood added that it is currently rolling out margin investing to UK customers, with broader availability expected in the coming weeks.