Robinhood º£½ÇÊÓƵ has announced the roll-out of its margin investing feature, which was initially delayed by financial regulators. .
This service enables clients to borrow funds from Robinhood, using their current investments as collateral to buy extra shares, as reported by .
When Robinhood º£½ÇÊÓƵ was introduced in March, it proposed to charge 12% interest on these loans based on a "regulatory exemption". This would have allowed them to forgo suitability checks for customers concerning margin investing.
Subsequent communication from the company saw this detail retracted, and a Robinhood representative indicated that the release of the margin investing had been postponed while conversations with the regulator were ongoing.
"It's paused and we're discussing further with the regulator, but it's certainly something that we're developing," Jordan Sinclair, president of Robinhood º£½ÇÊÓƵ, stated to City AM back then.
The margin investing option is now available, with interest rates starting at 6.25% for sums below $50,000 (£38,500), reducing to 5.2% for amounts exceeding $50m (£39m).
Jordan Sinclair commented on the launch, saying, "With the launch of margin investing, we're giving our º£½ÇÊÓƵ customers even more flexibility and tools to enhance their investing strategies,".
He added, "At Robinhood we understand that investors want access to expand and diversify their portfolios at industry leading rates, in an amazing user experience."
The March launch of Robinhood º£½ÇÊÓƵ marked the firm's initial foray outside the US, following its rise to global notoriety in 2021 as a key player in the so-called meme stock frenzy.
The brand made an unsuccessful attempt to break into the º£½ÇÊÓƵ market in 2020 and later tried to acquire º£½ÇÊÓƵ trading app Ziglu in 2022, but withdrew once more, stating it was concentrating on its US operations instead.
While the company has not outlined any specific objectives for º£½ÇÊÓƵ expansion, it is stepping into a densely populated platform market with stiff competition.
