Robinhood launched its long-awaited desktop platform and added index options trading features to its mobile app on Wednesday. The Robinhood desktop trading will help the fintech firm take market share from traditional brokerages. The new Robinhood Legend web trading platform premiered today at the broker’s inaugural and sold-out HOOD Summit 2024 for active traders.
(Image Credit: aboutrobinhood)The 11-year-old commission-free trading app, which became synonymous with mom-and-pop investors in 2021. It is now seeking to mature into a full-fledged financial services provider and compete with established brokerages that serve institutional investors.
Desktop trading platform Robinhood Legend
The California-based company said its desktop trading platform, dubbed ‘Robinhood Legend,’ will focus on active traders.
“We’ve matured alongside our customers and have heard loud and clear that they want access to more advanced products and more active trading tools,” as per Robinhood’s Chief Brokerage Officer Steve Quirk. “Our long-term goal is for Robinhood to be the primary financial services company that meets all of customers’ needs.”
Robinhood platform features
The platform, available at no additional cost, will offer advanced trading tools, real-time data, as well as custom and preset layouts.
Meanwhile, the app will allow users to trade futures on the benchmark S&P 500 index, oil and bitcoin , among others. Customers can also trade index options.
Competition
Long dominated by high-profile names like Vanguard, Charles Schwab , and Fidelity Investments, the U.S. brokerage industry saw its first disruption in decades when Robinhood pioneered commission-free trading in 2013.
Today, Robinhood is expanding to cater to more seasoned investors. Trading in futures and options has been the domain of large players, due to higher margin requirements, along with increased volatility and commissions.
Robinhood’s futures trading plaform fees
Subscribers to Robinhood’s premium Gold tier will be able to trade futures for as low as 50 cents per contract, while non-Gold users will need to pay a commission of 75 cents.
This compares with Schwab’s charges of $2.25 per contract, while Morgan Stanley’s E*TRADE takes $1.50 for futures and $2.50 for crypto futures.
Robinhood’s fees for index options, set at 35 cents per contract for Gold members and 50 cents for others, is also lower than industry peers.
The company had 11.8 million monthly active users and 1.98 million premium ‘Gold’ customers, as of June 30.
Analysts on Robinhood’s futures trading
Analysts have previously said Robinhood’s entry into futures trading this year could be met with some caution by retail traders if it charges a fee, but it could also create new opportunities for expanding its market share.
Robinhood’s growth
Earlier this year, the company had committed to expanding margins while focusing on driving “profitable growth” in 2024. Three consecutive quarters of reported profits have also bolstered investor enthusiasm, contributing to a year-to-date stock gain of over 100%.
