After US trading platforms like Public.com and Webull emerged in the UK market, Robinhood, the popular trading app provider, has decided to make its mark in the country. The company, which pioneered 'zero-fee' trading, hopes to obtain a license from the Financial Conduct Authority (FCA ) by the end of the year, according to information released by Bloomberg.

Robinhood Wants to Enter the UK Market

According to media reports today (Tuesday), Robinhood is looking for individuals to fill key positions in the UK market. The Silicon Valley-based company posted on LinkedIn that they're looking for a Compliance Officer in London and a few other executives.

"Our team of Hoodies in the UK will enable Robinhood to continue creating great financial products on our journey towards democratizing finance for all," the job listing stated.

According to official documents filed by the company in May, the retail trading platform intends to establish an FCA-regulated branch by the end of this year at the latest. Attempts to gain authorization in the UK have been ongoing for over three years. The acquisition of the London-based cryptocurrency company, Ziglu is expected to facilitate this process.

The news came shortly after Public.com, a New York platform for retail investors, also announced its intention to cater to clients from the UK, offering them trading on over 5,000 US stocks. In addition, American Webull decided to enter the UK market, having previously launched three branches in major APAC jurisdictions.

Until now, American companies offering retail trading services have had difficulty entering the UK market due to deeply entrenched local competition. Investors commonly use platforms like Freetrade, Plus500, or Revolut. However, as UK companies attempt to expand into the US, American businesses are also beginning to look for opportunities in the UK.

UK Emerges as an Attractive Market for US Firms

The moves made by Webull, Capital.com, and now Robinhood are not accidental. According to the latest data from Investment Trends, the number of active retail investors in major jurisdictions has been decreasing recently. In the United States, this decline was 24%. Despite the fact that the drop in the number of active investors in the UK was greater than in the US (25% vs 24%), the overall base of active clients in the CFD/FX market is still clearly larger in the UK.

Investment Trends reports that in May 2022, 205,000 people in the UK actively traded on these markets, while in the United States this number was only 175,000. The UK is one of the most developed financial markets in the world, so it could enable Robinhood to expand its existing user base significantly.

For Robinhood, this is another attempt to boost its declining active user base. Finance Magnates recently reported that in an effort to attract a younger generation of investors, the platform was the first to introduce 24/5 trading for US stocks. Poorer results led to a third round of employment cuts at the firm. In 2022, the company laid off 1,000 people during the previous two layoff periods. In a report published last month, Robinhood revealed that the number of users dropped 8% in May. Meanwhile, the company recorded a net loss of $511 million in the first quarter.