Robinhood launched the long-awaited desktop platform on Wednesday, October 16.
The mentioned company has also added futures and index options trading features to its mobile app. The corresponding activities are largely related to the desire of this fintech firm to take market share from traditional brokerage companies.
The 11-year-old commission-free trading app, which in 2021 became a kind of additional name for mom-and-pop investors, currently demonstrates a confident desire to become a full-fledged financial services provider. Also, in this case, another goal is to compete with established brokerages that specialize in servicing institutional investors.
The desktop trading platform is called Robinhood Legend. The company stated that this platform will focus on active traders. Robinhood Legend, available without additional cost, will offer consumers real-time data, advanced trading tools, and custom and pre-installed layouts.
At the same time, the company’s app will allow users to trade futures on the benchmark S&P 500 index, oil, and bitcoin, among others. Moreover, in this case, customers will be able to trade index options.
Robinhood, headquartered in Menlo Park, California, is currently expanding. In this case, the company’s efforts are aimed at catering to more seasoned investors. It is worth noting that within the framework of standard practice, futures and options trading is the prerogative of hedge funds, large banks, and asset managers. The corresponding state of affairs was formed due to higher margin requirements, increased volatility, complexity, and commissions. However, fintech companies already have the capabilities to provide futures and options trading.
Subscribers to Robinhood’s premium Gold tier will be able to trade futures. They will pay 50 cents per contract. At the same time, other users will pay a commission of 75 cents.
Robinhood’s fees for index options, set at 35 cents per contract for Gold members and 50 cents for others, are lower compared to the terms provided by other industry players.
As of June, the Menlo Park-based company had 11.8 million monthly active users. Also, at that time, the firm had 1.98 customers with a premium Gold tier subscription.
As we have reported earlier, Robinhood Launches Stock Lending for British Customers.
