Robinhood Markets (NASDAQ: HOOD) has announced a significant expansion of its trading offerings, introducing index options, futures trading, and a new desktop platform called Robinhood Legend. At its first-ever HOOD Summit in Miami yesterday (Wednesday), the popular zero-commission trading platform confirmed a push to cater to more sophisticated retail investors.

Robinhood Targets Active Traders with Index Options, Futures Launch

In partnership with Cboe Global Markets, Robinhood will soon offer index options trading on its platform, including popular products such as S&P 500 Index (SPX) options, Cboe Volatility Index (VIX) options, and Russell 2000 Index (RUT) options. This addition responds to growing demand from retail investors for more advanced trading tools and risk management strategies.

“As our customers have grown, they have asked us for access to more advanced assets including index options, which allow them to diversify their portfolio and better manage risk,” stated Steve Quirk, Chief Brokerage Officer at Robinhood.

According to the company's latest financial report for Q2 2024, options trading was one of the key revenue drivers, increasing by 43% year-over-year to $812 million. The company’s total net revenues for the reported period amounted to $682 million.

Alongside index options, Robinhood is launching futures trading directly in its mobile app, allowing traders to trade contracts on assets like the S&P 500, oil, and Bitcoin .

Perhaps the most significant announcement is the introduction of Robinhood Legend, a browser-based desktop trading platform designed for active traders. The platform offers advanced charting capabilities, real-time data, and customizable layouts, aiming to compete with established offerings in the active trading space.

“With Robinhood Legend, futures, and index options, we're helping customers harness the full power of the markets so they can take control of their financial future,” added Vlad Tenev, Chairman and CEO of Robinhood.

The expansion comes as the options trading market continues to see significant growth. In 2023, US options volumes exceeded 11 billion contracts, marking the fourth consecutive year of record activity. This trend has continued into 2024, with average daily volumes reaching 47 million contracts in the third quarter, an 8% increase from the previous year.

Education and Promos

To support the rollout of these new offerings, Robinhood is also enhancing its educational resources. The company plans to provide articles on futures trading through its Robinhood Learn platform and will release a series of educational YouTube videos in the coming months.

As part of the HOOD Summit launch, Robinhood is offering bonuses for customers who transfer assets to the platform by October 27, including a 1% bonus on brokerage account transfers and a 3% bonus on IRA transfers for Gold subscribers.

The new features will be rolled out gradually over the coming months, with Robinhood Legend already available to some users and futures and index options set to launch on the mobile app in the near future.

A few weeks ago, the company also introduced cryptocurrency transfers for users in the European Union. “Support for deposits and withdrawals gives customers more control over their crypto,” Robinhood commented.