Robinhood Equivalent UK

You have probably heard about the Robinhood app on YouTube and want to know if it’s available in the UK, right?

Robinhood is a modern and easy-to-use investment app from the US, which has introduced the concept of commission-free trading in financial products such as stocks and ETFs.

Want to know if Robinhood’s expansion plans, if it’s available in the UK, and the alternatives? We’ve got you covered!

What is Robinhood?

Robinhood was founded in 2013. Since then, it has played a major role in disrupting the brokerage industry by allowing US retail investors to trade with no commissions, alongside its biggest rival, Webull. Robinhood is defined as a commission-free online broker that offers the possibility of trading stocks, ETFs, options, and cryptocurrencies.

The results are clear: over 18 million users! The competitors of Robinhood have been monitoring this exponential growth closely, and, in October 2019, some major well-established brokers in the US, such as E-Trade, TD Ameritrade, and Charles Schwab, announced in quick succession that they were eradicating trading fees. 

Is Robinhood Available in the UK?

Unfortunately, Robinhood is not yet available outside the US. It had planned to open in the UK in 2020, but it was postponed indefinitely. Their global expansion has taken no step further since then.

But do not lose hope! You will find some alternatives in the UK that have proven reliable (and perhaps even more reliable than Robinhood!).

The covid-19 stock crash during the first quarter of 2020 showed some vulnerabilities of the Robinhood platform. The app collapsed several times, and investors could not trade during the most volatile markets in history. The company is facing some lawsuits due to these outages.

Besides, Robinhood has faced several security breaches in revealing sensitive information about its clients, and, at one point, it even allowed “infinite leverage” that was shortly corrected afterwards. Still, it did not avoid major losses for some clients.

Robinhood Equivalent in the UK

To help you find a Robinhood UK equivalent, we focused on commission-free brokers available in the UK. Given that, here are our suggestions:

  • eToro: Commission-free stock and ETF trading. You can also copy other traders/investors. Slick, modern, and easy for anyone to use. It is trusted by over 20 million clients worldwide.
    67% of retail CFD accounts lose money when trading with this provider.
  • Freetrade: The UK equivalent to Robinhood, Freetrade lets you invest in more than 1600 UK and US stocks, as well as ETFs, for free. Offers an ISA.
  • Revolut Trading: One free trade every month. Mobile app only.
  • Trading 212: Commission-free stock and ETF trading, 0.15% of foreign exchange fees, and presents fractional shares. Over 1.5 million customers. Offers an ISA (the UK equivalent to the Roth IRA).
    76% of retail CFD accounts lose money when trading with this provider.

All the companies here mentioned are regulated and/or registered in the Financial Conduct Authority (FCA) in the UK.

1# eToro

etoro logo
Visit eToro

67% of retail CFD accounts lose money.

eToro at a glance

  • 0% Commission: ✔ (Stocks and ETFs)
  • Mobile App:
  • Products: CFDs, ETFs, Stocks, Commodities, Forex, and Cryptocurrencies
  • Minimum deposit: $50
  • Regulators: CySEC, FCA, and ASIC

Founded in 2006, eToro is a well-known worldwide fintech startup and the leader in the social trading field (follow other people’s trades), with over 20 million users worldwide. You can also invest in other products such as CFDs, ETFs, stocks, commodities, Forex, and cryptocurrencies through their platform, which is intuitive and simple to use, making it a good choice for beginners. Plus, they have started offering commission-free stock and ETF trading in the UK (not all ETFs are commission-free).

Opening an account and depositing is easy, and you can even try it out with virtual money. On the downside, spreads can be high for some products. The only currency accepted is the USD, so you’ll be charged currency conversion fees upon deposit and withdrawal if you deposit in GBP.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2# Freetrade

Freetrade at a glance

  • 0% Commission: ✔ (Stocks and ETFs)
  • Mobile App:
  • ISA:
  • Products: Stocks and ETFs
  • Minimum deposit: £1
  • Regulators: FCA

Freetrade is a mobile-only commission-free UK stockbroker founded in 2016 that lets you invest in more than 1600 UK and US stocks, as well as ETFs, for free.

Freetrade has come to revolutionize the traditional brokerage industry. A lot of brokers still present high complexity over their platforms and product offering. Freetrade is on a mission to help customers achieve better long-term financial outcomes and, for that purpose, it wants to be as transparent and trustworthy as possible. Ultimately, its goal is to allow everyone to benefit from wealth creation.

In the Freetrade app, you will not find CFDs and other related complex products; it does not promote day trading and has no hidden fees. The account opening process is quick and smooth. The mobile app is remarkably user-friendly. The main drawback is the limited markets (only US and UK stocks and ETFs).

As displayed on its website, Freetrade makes money through three revenue streams: ISA, £3/month, their premium service (£9.90/month), a fee of 0.45% of the Base FX rate on each US order placed, and a small amount of interest earned from banks on customers’ cash.

It operates under a freemium (free+premium) business model. For £9.90 a month, users get extra features such as limit orders, the ability to set stop loss, more stocks, etc. If you’re interested, you can also read our full Freetrade Review.

3# Revolut Trading

Revolut at a glance

  • 0% Commission: ✔ (only one free trade a month, US stocks)
  • Mobile App:
  • Products: Stocks, Cryptocurrencies, Gold, and Silver.
  • Minimum deposit: £0
  • Regulators: SEC, FCA, and FINRA

Founded in 2019, Revolut Trading is part of the Revolut app (existing since 2015) and provides its users with an efficient way to invest (all in one place). It only allows investment in American stocks (+750 companies) free of charge up to one transaction per month, cryptocurrencies with a spread of 1.5%, and gold and silver with a spread of 0.25% when the market is open. On the other hand, there are no inactivity or withdrawal fees.

The app is super intuitive, and the account opening process is 100% digital, fast, and secure. Unfortunately, it still has a very low selection of financial products, and the account can only be denominated in dollars. Some of the non-accessible assets are ETFs, CFDs, Forex, bonds, and options. Furthermore, it does not have any educational or market research material, and it charges an annual custody fee of 0.12%.

Learn more in our in-depth Revolut Trading Review.

4# Trading 212

trading 212 logo
Visit Trading 212

76% of retail CFD accounts lose money.

Trading 212 at a glance

  • 0% Commission: ✔ (Stocks and ETFs)
  • Mobile App:
  • ISA:
  • Products: CFDs, Stocks, ETFs, Commodities, Forex, and Cryptocurrencies
  • Minimum deposit: £1
  • Regulators: FCA and FSC

Founded in 2006, Trading 212 is a fintech based in London that aims to democratize the entire investment process through a simple mobile application. The company aims to do this by allowing anyone to invest in over 10,000 stocks and ETFs, Forex, commodities, CFDs, and cryptocurrencies. Over 15 million people have already downloaded the app. In 2017, it was the trading app with the most downloads in Germany and, since 2016, it has remained 1st in the United Kingdom.

In Trading 212, you will find commission-free stock and ETF trading, fractional shares, and even an automatic investment system (Robo-advisor). Opening an account is extremely quick and easy. On the downside, it shows limitations regarding available products, such as the lack of bonds and options. It charges a 0.15% currency conversion fee when buying assets in a currency different from your base account.

Within the app, you will notice two distinct sub-platforms: Trading 212 Invest, where you can trade a range of assets free of charge and trading 212 CFD, where you may trade leveraged financial products (CFDs).

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this broker. It is important to understand how CFDs work and the risks involved in trading, such as losing all invested capital.

Which platform should you choose?

Some factors you should know of when choosing an online broker are the fees charged if it is regulated by top-tier institutions such as the FCA in the UK, the range of products it allows you to trade (not all platforms allow you to trade cryptocurrencies or LSE-listed stocks), if it has tax-efficient accounts such as the ISA account in the UK, among others.

The best online broker in your specific case will depend on your profile, preference, and objectives. Explore the websites above and decide for yourself!

A reminder that the above should not be seen as investment advice and should be considered information only. Investors should do their own research and diligence about the services and opportunities best suited for their risk, returns, and impact strategy.

Hope we helped, and leave your comments below.

Happy investments!

Other FAQs about Robinhood

How exactly does Robinhood make money?

The online broker earns money from interest earned on customers’ cash balances (money in your account not invested), by selling order information to third parties (high-frequency traders, for instance), and margin lending.

Regarding the selling of orders, the US Securities and Exchange Commission (SEC) is still investigating Robinhood for not fully disclosing its practice of selling clients’ orders to high-speed trading firms.

Until October 2018, Robinhood would not clearly state that it was receiving payments for order flows. By law, any financial company must reveal all the material facts an investor would want to know before making any investment decision.

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