Investors worldwide are seeking straightforward access to high-quality, lucrative investment opportunities, but UK investors often face numerous challenges when attempting to enter US markets. Robinhood, a popular American trading and investment application, aimed to address these hurdles.
To improve access to US investments, Robinhood established a UK office in March last year. Jordan Sinclair, President of Robinhood UK, shared in a recent FinextraTV interview, "When we consider expanding, it’s crucial to understand the local customer and the pain points they still endure. By offering innovations such as 24/5 trading, we can provide solutions to the unique challenges posed by different time zones for UK investors."
Engagement levels among UK investors remain high, despite the existing complexities and financial risks associated with US investments. UK investors are increasingly participating in US markets, even though they often face time-related challenges. "We notice that UK investors are keenly engaging with earnings calls, which typically occur late in GMT hours, and they previously lacked opportunities to invest in real-time."
The problems go beyond mere timing; there are significant financial barriers as well that impede timely investments. "Customers frequently express dissatisfaction with their current platforms, which either charge exorbitant fees or promote commission-free trading while imposing steep foreign exchange costs on investments in well-known companies like Apple, Nvidia, and Amazon," Sinclair noted.
Investment choices are often influenced by social factors or advice, and hearing about promising opportunities without having easy access to act can be frustrating. While improving access to US investments is a progressive step for an already popular service, it’s crucial to consider the unique preferences and requirements of UK investors. This understanding forms the core of the ‘local approach’ Sinclair emphasizes.
"We are acutely aware that UK investors prioritize the protection of their funds and the interest earnings on their cash. So, we provide not only a competitive interest rate but also safeguards that extend up to $2.5 million. This awareness enhances the experience for our local customers," Sinclair explained.
This localized perspective shaped Robinhood’s strategy for entering the UK market and demonstrates that it is feasible to overcome international barriers through a customer-centric philosophy. For further details on the learning process, onboarding, and obtaining FCA approval, Sinclair elaborates in the full FinextraTV Interview.