Are you a budding investor in the UK, itching to get your hands on the Robinhood app? Maybe you’ve heard about the app’s commission-free trades or are drawn to its user-friendly interface and the promise of democratizing finance for all. But you’ve hit a brick wall. Robinhood, the popular US-based trading app, is not available in the UK. You’ve even tried using a VPN to access it but to no avail. The app remains tantalizingly out of reach. As an avid investor and a user of various trading apps, I understand your frustration.
But here’s the good news: your wait might soon be over. Robinhood has announced plans to launch in the UK by the end of 2023. While we wait for this big finance company to come here, I’ll show you the top three alternatives I found through lots of testing.
| Platform | Best For | Minimum Deposit | Products | Fees |
|---|---|---|---|---|
| eToro | Beginners & Social Trading | $50 | Real Stocks, ETFs, Forex and CFDs on Stocks, ETFs, Cryptos and Commodities | 0% commissions on stocks and ETFs (spreads apply) |
| Interactive Brokers | Advanced Traders & ISAs | £0 | Stocks, ETFs, Bonds, Forex, Funds, Commodities, Options, Futures and CFDs | Up to $0.0035 per stock (min: $0.35) |
| Trading 212 | Low-Cost Investing | £10 | Real Stocks, ETFs, Forex, CFDs on stocks, crypto, indices and ETFs | 0% commissions on stocks and ETFs (spreads apply) |
In this article, we will explore why Robinhood isn’t available in the UK and why a VPN won’t solve your problem. We’ll also explore the exciting news about Robinhood’s planned UK launch. But most importantly, we’ll navigate the landscape of UK trading apps, examining the best alternatives to Robinhood. From social investing platforms for beginners to choices for advanced traders, and even low-cost investing options, we’ve got it all covered. So, buckle up and let’s dive into the world of UK trading apps, exploring the best alternatives to Robinhood for 2023.
Is Robinhood Available in the UK?
Let’s cut to the chase: as of now, Robinhood is not available in the UK. The popular US-based trading app has yet to make its debut on this side of the pond. Despite its impressive user base and the buzz it has generated in the States, UK investors have been left twiddling their thumbs, waiting for their turn to join the Robinhood revolution.
This isn’t for lack of trying on Robinhood’s part. The company initially announced plans to launch in the UK back in 2020, even going as far as to secure regulatory approval from the Financial Conduct Authority (FCA). However, these plans were put on hold indefinitely, leaving UK investors in the lurch.
So, if you’re a UK investor keen on getting a slice of the Robinhood pie, you’re unfortunately out of luck. For now, at least.
Can I use a VPN to use the Robinhood app from the UK?
You might be thinking, “Can’t I just use a VPN to access Robinhood from the UK?” It’s a fair question. After all, VPNs are commonly used to bypass geographical restrictions on various online platforms. However, using a VPN won’t do the trick when it comes to Robinhood.
Here’s why: Robinhood requires users to have a valid Social Security number, a legal US residential address, and a US citizen or valid US visa. So, even if you manage to download the app using a VPN, you won’t be able to create an account without these US-specific details.
Moreover, attempting to bypass Robinhood’s geographical restrictions could land you in hot water. It’s against the company’s terms of service and could result in your account being suspended or even permanently closed. So, as tempting as it might be, using a VPN to access Robinhood from the UK is a no-go.
When is Robinhood Coming to the UK?
Now for the million-dollar question: when is Robinhood coming to the UK? According to the Robinhood Financial Report of Q1 2023, the company is planning to launch in the UK by the end of 2023, following the steps of its brother Webull which has just launched in the UK.
The report states: “Our continued exploration of growth opportunities and belief that we are on track for our ambitious goal of launching brokerage services in the UK by the end of the year”. This is further supported by several job listings the company has opened up to support the launch in the UK market.
So, it seems the wait for Robinhood’s UK launch might finally be coming to an end. However, as with all things in the world of finance, it’s essential to take this news with a pinch of salt. After all, Robinhood’s initial plans to launch in the UK were unexpectedly shelved. But for now, it seems there’s light at the end of the tunnel for UK investors eager to join the Robinhood bandwagon.
Robinhood Alternatives for UK Investors
eToro – Best for Beginners & Social Trading
76% of retail CFD accounts lose money.
eToro in a nutshell
eToro is a pioneer in the world of social trading, with a global community of over 30 million users. Launched in 2007, this platform has carved a niche for itself with its innovative features, such as CopyTrader™ and Smart Portfolios. These tools empower users to mirror the trades of successful investors or invest in a diversified portfolio, making eToro a fantastic platform for beginners looking to learn from seasoned traders.
The platform’s user-friendly interface is another feather in its cap, making it a breeze for newcomers to navigate the world of trading. eToro is also regulated by top-tier entities, including the UK’s Financial Conduct Authority (FCA), providing users with an added layer of security.
eToro’s commission-free stock and ETF trading make it a cost-effective alternative to Robinhood. Its primary revenue source is the spread, which is the difference between a security’s buy and sell price. This pricing model is straightforward and transparent, making it easy for beginners to understand what they’re paying for.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers – Best for Advanced Traders & ISAs
Interactive Brokers in a nutshell
Interactive Brokers (IBKR), established in 1978, is a titan in the online brokerage industry, catering primarily to active and sophisticated investors. With a reputation built on resilience and robust risk management, it has weathered numerous economic storms, demonstrating its reliability. The company offers a wide range of products and top-notch research tools, making it a treasure trove for advanced traders.
While the website can be a bit daunting for beginners, the IBKR GlobalTrader mobile app is a game-changer. This app offers a more streamlined and user-friendly experience, making it an ideal choice for novice investors looking to dip their toes into the trading world.
Interactive Brokers’ low commission structure makes it a cost-effective alternative to Robinhood for UK investors. The company offers low fees for trading US stocks/ETFs and UK Stocks/ETFs, with a transparent fee structure that’s easy to understand. But, for small transactions (under 2000€), the spreads will have a smaller impact, so we believe both eToro and Trading 212 are cheaper alternatives. Also, IB lacks eToro’s Social Trading feature.
What sets Interactive Brokers apart is its comprehensive range of products and markets. The platform offers several investment options that few competitors can match, from stocks and ETFs to options. This wide variety makes it a fantastic platform for advanced traders looking to diversify their portfolios.
Lastly, Interactive Brokers offers a Stocks and Shares ISA and a Junior ISA (JISA). It makes Interactive Brokers a standout choice for those looking to make the most of their tax-free savings allowance.
Trading 212 – Best for Low-Cost Investing
Investing involves risk of loss.
Trading 212 in a nutshell
Trading 212 is a UK-based online broker that’s been making waves in the world of low-cost investing. Established in 2006, the platform has grown to serve over 15 million users worldwide, offering commission-free Stocks and ETFs trading along with an automated investing feature called “AutoInvest & Pies.”
Regulated by top-tier authorities, including the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Bulgarian Financial Supervision Commission (FSC), Trading 212 provides a secure environment for investors to trade with confidence.
Trading 212’s commission-free trading model also makes it an excellent low-cost alternative to Robinhood. The platform charges minimal fees, with one of the few being a 0.15% currency conversion fee. It also shares profits on share lending on a 50/50 basis, providing an additional income stream for investors.
The platform’s user-friendly web and mobile apps and a wealth of educational materials and real-time market data make it an excellent choice for beginners and experienced traders. Its “AutoInvest & Pies” feature allows users to automate their investing, making building and managing a diversified portfolio easier.
However, it’s worth noting that Trading 212’s product portfolio is somewhat limited compared to Interactive Brokers, charges high forex fees, and lacks the social trading feature that sets eToro apart.
Final Thoughts
In conclusion, while the wait for Robinhood’s UK launch continues, there are several robust alternatives available for UK investors. Each platform has its unique strengths and caters to different types of investors. eToro shines with its social trading feature and user-friendly interface, making it an excellent choice for beginners. Interactive Brokers offers a comprehensive range of products and advanced trading tools, catering to more experienced traders. Trading 212 stands out with its low-cost, commission-free trading model, making it an attractive option for cost-conscious investors.
| Platform | Best For | Minimum Deposit | Products | Fees |
|---|---|---|---|---|
| eToro | Beginners & Social Trading | $50 | Real Stocks, ETFs, Forex and CFDs on Stocks, ETFs, Cryptos and Commodities | 0% commissions on stocks and ETFs (spreads apply) |
| Interactive Brokers | Advanced Traders & ISAs | £0 | Stocks, ETFs, Bonds, Forex, Funds, Commodities, Options, Futures and CFDs | Up to $0.0035 per stock (min: $0.35) |
| Trading 212 | Low-Cost Investing | £10 | Real Stocks, ETFs, Forex, CFDs on stocks, crypto, indices and ETFs | 0% commissions on stocks and ETFs (spreads apply) |
It’s important to remember that each platform has its limitations. eToro and Trading 212 have a somewhat limited product portfolio compared to Interactive Brokers. Trading 212 charges high forex fees and lacks the social trading feature of eToro. Interactive Brokers’ platform can be overwhelming for beginners, and its fees can be higher compared to the commission-free trading offered by eToro and Trading 212.
Ultimately, the best platform for you will depend on your individual needs and investment goals. So, while we wait for Robinhood to make its UK debut, why not explore these alternatives and see which one best fits you? Happy investing!
FAQs
Why can’t I use Robinhood in the UK?
Here’s the scoop. Robinhood, the popular commission-free trading app, has yet to make its debut in the UK. The company had plans to launch in early 2020, but unfortunately, they’ve hit the brakes on their UK expansion. However, according to the Robinhood Financial Report of Q1 2023, the company is planning to launch in the UK by the end of 2023. So, for now, Brits are left in the lurch, but there seems to be light at the end of the tunnel.
What countries use Robinhood?
As of now, Robinhood is only available in the United States. The app is popular among young, tech-savvy investors who are drawn to its user-friendly interface and zero-commission trades. However, Robinhood’s international expansion has been slow, and the app is not yet available in other countries.
When is Robinhood launching in the UK?
Well, that’s the million-dollar question, isn’t it? According to the Robinhood Financial Report of Q1 2023, the company is planning to launch in the UK by the end of 2023. This is further supported by several job listings the company has opened up to support the launch in the UK market. So, while we may not have a specific date, it seems the wait for Robinhood’s UK launch might finally be coming to an end.
What should I consider when choosing a trading platform?
Choosing a trading platform is a big decision, and there are several factors you should consider:
Fees: Look for a platform with low or no commission fees. These can eat into your profits over time.
Ease of use: The platform should be user-friendly, especially if you’re a beginner.
Investment options: Make sure the platform offers the types of investments you’re interested in.
Customer service: Good customer service can be a lifesaver when you run into issues.
Security: The platform should have strong security measures in place to protect your investments.
Rui is an Economist who has founded several online projects and written for multiple Economics and Finance websites.
