Robinhood Review UK – Pros & Cons Revealed

Robinhood is a popular online brokerage that allows users to trade stocks, cryptos, options, and ETFs without paying any commissions. If you’re thinking about using Robinhood – then you should read our in-depth review first before you get started.

As part of our Robinhood review 2024, we will cover everything from trading tools, supported markets, fees, payment types, margin accounts, security, and more.

What is Robinhood UK?

A US-based online broker launched in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood is one of the largest online brokers in the world. There is a claim on the website that the platform is on a mission to democratize finance for everyone. The platform achieves this goal by allowing the Average Joe Trader to invest without paying any commissions, and there is no minimum stake requirement.

Currently, Robinhood offers a wide selection of stocks and ETFs listed on major US stock exchanges (NYSE and NASDAQ). Additionally, there are many crypto trading markets where you can invest, and it is also possible to purchase stock options on those markets. However, the thing that makes Robinhood so appealing – apart from the fact that it offers no fees – is that it is very straightforward to use.

It takes just minutes to sign up and invest in an asset – no prior experience or knowledge is needed. With a client base of over 10 million traders, Robinhood has experienced a boom in the past few years. Plans for the broker include expansion into other markets – with the UK being the first on the list. The brokerage is expected to go public in the second half of 2024.

Let’s check in detail in this Robinhood review everything you need to know about this broker.

What Can You Invest in and Trade on Robinhood UK?

We are going to discuss assets and markets that you can access using the Robinhood broker in this part of our Robinhood review.

Trade Stocks

There is no doubt that the stock department of Robinhood is the place where the vast majority of trading activity takes place. There are a small number of international equities, around 250 or so, provided by Robinhood, but other than that, all the markets are from the United States. That means you have access to the New York Stock Exchange and the Nasdaq Stock Market.

There is no need to worry about whether you are interested in investing your money into companies such as Apple, IBM, Microsoft, Tesla, Salesforce, or Disney, as Robinhood offers a market to suit your needs. Robinhood has many cool features, but one of the coolest ones is the ability to invest fractional shares so that you can invest just a few dollars into a company of your choice.

Therefore, this means that it is no longer necessary to allocate thousands of dollars in order to buy a single stock in an organization such as Amazon or Google.

Trade Cryptocurrencies

Based on our review of Robinhood, we found that it is also a popular choice for those interested in adding cryptocurrency to their investment portfolio. Consequently, you will now be able to buy and sell seven different types of digital coins directly from the Robinhood website or trading app.

Cryptocurrency markets supported by Robinhood include:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Bitcoin SV (BSV)
• Dogecoin (DOGE)
• Ethereum (ETH)
• Ethereum Classic (ETC)
• Litecoin (LTC)

Robinhood’s cryptocurrency department has both pros and cons when trading cryptocurrencies. As far as the positives go, Robinhood supports fractional ownership when you buy digital coins – which means that you can invest in cryptocurrency assets such as Bitcoin and Ethereum with just a few dollars.

Robinhood helps you enter the cryptocurrency market with a small amount of capital, which is crucial, as the cryptocurrency markets can be overly volatile from time to time.

Sponsored ad. Your capital is at risk.

On the other hand, there are many cryptocurrencies that Robinhood can offer, but the number and choice could be improved. By choosing to offer Bitcoin SV as an alternative to more popular coins such as Ripple, EOS, or even Binance Coin.

Robinhood ETFs

A great selection of ETFs is available through Robinhood if you are looking for a simple and well-diversified portfolio of investments. Our Robinhood review found that the broker has a great selection of ETFs that you may want to consider. Many of these funds are based on popular index funds such as the S&P 500 and Dow Jones.

Robinhood Stock Options

Moreover, Robinhood is also well-known for being the go-to place to trade stock options in the United States. In this way, it is possible to speculate on the future value of a US-listed stock in a more sophisticated way. Moreover, at Robinhood, you can trade stock options much more affordably, as they need a much smaller amount of capital to start – and the maximum loss you can sustain is the premium you pay.

Moreover, using the Robinhood platform, you can take a short position through a put contract if you choose to take the stock option route. As such, you will want to take advantage of the downfall of a stock in order to profit from its downfall.

You will notice that Robinhood does not offer any options to trade commodities or foreign exchange on its platform. Therefore, if this is what you are looking for, you will have to use an alternative trading platform to achieve this.

Robinhood UK Fees & Commissions

If you are wondering about Robinhood fees in the trading department, please review the table below.

Robinhood UK User Experience

You should also be aware of other Robinhood fees – check out the table below to learn more.

We will outline the fees and charges described above in the following sections of our Robinhood review.

0% Commission Trading

Robinhood does not charge trading commissions, as we have noted several times in our Robinhood review. In addition, no matter how much you trade or invest, Robinhood does not charge brokerage fees. So basically, you will not be charged a dime for entering and exiting your chosen market as many times as you like.

Spreads

Robinhood charges a spread on all of the markets it supports. The spread for this instrument is variable, so that it will change throughout the day depending on the wider market conditions. If you’re looking for strength in terms of competition, this depends on the asset you are trading – so you’ll have to keep this in mind when placing your order.

Deposits

As part of the Robinhood platform, you can withdraw and deposit funds via ACH without having to pay any transaction fees.

Gold Account

Toward the end of this Robinhood review, we will discuss more in-depth about the Gold account, which will cost you $5 per month.

Margin Trading

A margin trading facility can only be accessed if you have a Gold brokerage account and a minimum balance of $2,000 – and the rate you will have to pay will be around 2.5%. That rate and the size and duration of the margin position will determine how much you will have to pay.

Robinhood UK Features, Charting, and Analysis

As a result of our Robinhood review, we discovered charts available for all supported markets on the platform – both online and on the mobile app. In addition, it is possible to choose between line charts and candlestick charts, and you can switch back and forth between them. RSI, EMA, MACD, and SMA are also supported.

Despite this, the charting and analysis presented on the platform are very basic. However, the matter of this is that it is not sufficient for experienced traders who rely exclusively on advanced charting research when it comes to trading.

Additionally, if you wish to gain access to Level II market data, you will need to upgrade to a Gold account. There are over 1,700 stocks that Robinhood offers in-depth reports on regarding fundamental research. It is provided by Morningstar, although, as before, you will need to have a Gold account to gain access to it.

Robinhood UK Account Types

According to our Robinhood review, Robinhood is a broker that offers two different types of accounts. In addition to stocks and options, you will have commission-free access to cryptos, ETFs, and crypto derivatives with the Standard account. In addition, you do not need to set up a minimum account size, and you can start investing with just a few dollars. However, if you wish to gain access to additional features and perks – you might need to consider upgrading to Gold membership.

Robinhood Gold Account

You must pay $5 a month for a Robinhood Gold membership. For this, you will get:

Depositing larger amounts instantly: Standard accounts will allow you to deposit up to $1,000 instantly, whereas Gold accounts will allow you to deposit up to $5,000-$50,000 – depending on your balance.

Data and research: As stated above, the Gold account gives you access to Level II data and professional research reports on stocks.

Margin Trading: The Gold account gives you the ability to trade on margin. In accordance with laws, a margin balance of $2000 is required for this to be possible.

It should be noted that although the Gold account includes some modest features, the price of $5 per month reflects the fact that the features are modest.

Robinhood UK Mobile App Review

At first glance, Robinhood appears to be relatively simple to use, although there are a few settings to be aware of. For example, you can log into your Robinhood account with your usual login credentials once you download the Robinhood app to your iOS or Android device. This feature lets you buy, sell, and exchange stocks, crypto, options, and ETFs with only a few clicks.

The app can even help you find a market near you – since it has a search function that can help you find products you’re looking for. Additionally, placing an order is a breeze – as the app is designed to work well on small screens. However, based on our Robinhood review, we found that Robinhood has very few positive reviews in the public domain.

On Google Play, the Robinhood app has a rating of just 2.9/5 after over 10 million downloads and 386k reviews across more than 10 million users. In addition, customers have complained of ongoing glitches, missed orders, incorrect balances, and nonexistent customer support. In contrast, the iOS version of the app has a rating of 4.1/5, more than its Android counterpart.

Robinhood UK User Experience

Robinhood is a suitable choice for somebody with no experience trading stocks, who is interested in the stock market but is hesitant to do so due to their lack of knowledge. This platform has been specially designed for ‘casual traders’ looking for a simple and hassle-free way of accessing the investment industry.

If you go through the process of opening an account and making a deposit, you will be able to find the markets of your choosing once you’ve completed the process. Filters and a search box are available to help you navigate the platform. Additionally, you will receive daily updates on market movers and losers – which can help you gauge wider sentiments.

It is crucial to note that the main Robinhood dashboard is straightforward and free of jargon so that you can view your current portfolio in real-time, as well as your watch lists. The process of cashing out investment is also very simple – all that is required is a single click on the ‘Sell’ button.

Robinhood UK Deposit and Withdrawal Methods

The ACH (automated clearing house) is the only method of depositing and withdrawing money with Robinhood – and there are no transaction fees. If you opt for the Standard account, the first $1,000 of your deposit will be credited to your account immediately.

For example, when you deposit $3,000, you will receive $1,000 in your account immediately, while the remainder of $2,000 may take a few days to appear.

The Gold account will allow your instant deposit threshold to be increased by up to $50,000 by upgrading to the Gold account.

Minimum Deposit for Robinhood

Robinhood does not require a minimum deposit.

Robinhood Bonus

In addition, Robinhood is still offering its popular new customer promotion of one free stock upon signing up with your bank account and linking it to your Robinhood account. Upon signing up with your bank account, the value of your stock will be selected randomly by Robinhood. Although this number can be as high as $225, many consumers will sit between $2.50 and $10. After two days of receiving the free stock, you are able to sell it on the Robinhood platform.

Robinhood UK Contact and Customer Service

The customer service offered by Robinhood is known for being subpar. A large part of this is due to the sheer number of clients who are now using the platform. In order to contact Robinhood, you need to log into your Robinhood account and raise a support ticket. As a result, response times can be long – so it is advisable to keep this in mind before signing up for Robinhood.

Is Robinhood UK Broker Safe?

The users of Robinhood are asked to provide personal information when they create an account – such as their age, their net worth, their income, and their Social Security number. But, according to Nickolas Sanchez, a certified financial planner at Financial Architects, it is entirely normal for this kind of process to trade stocks under the SEC guidelines.

He explains that this is not a Robinhood-specific requirement. Additionally, he said that if you want to invest, even with reputable firms, you will be required to provide your personal information.

Robinhood must follow several regulations created by the Securities and Exchange Commission in order to prevent fraud and especially risky investments. Furthermore, Robinhood must comply with the SEC’s fair dealing regulations, including maintaining documents proving fair dealing. Otherwise, they risk being hit with fines or civil lawsuits.

Additionally, Robinhood is a member of the Securities Investor Protection Corporation, which offers financial protection in the unfortunate event of a brokerage firm going out of business. SIPC can replace up to $500,000 in both securities and cash, including a limit of $250,000 for cash only, in the case of missing property belonging to a customer.

Therefore, in the event that Robinhood went bankrupt, you as an investor could have your funds transferred to another brokerage firm or reimbursed if Robinhood went bankrupt. Unfortunately, the SIPC or Robinhood provides no protections for investments in cryptocurrency.

Last but not least, Robinhood ensures that its users’ passwords and “sensitive details” are encrypted during the login process. As soon as you confirm your banking information, Robinhood says it will “never access them again.” Robinhood also offers two-factor authentication via SMS text message and third-party authentication apps to further protect your financial data.

Robinhood UK Review – Conclusion

Robinhood is a suitable option if you want to get into the stock market and buy and sell a few stocks or ETFs. The platform allows you to trade without paying any commissions at all, and the platform itself is simple to use. However, you should bear in mind that Robinhood will only be available to UK traders until the end of 2024.

The company offers commission-free trading on thousands of UK and international markets across stocks, ETFs, forex, commodities, cryptocurrencies, and more. With the platform, you may use debit/credit cards and e-wallets, and it is also heavily regulated, and you can even invest passively through its Copy Trading function.

FAQs