Robinhood UK 🏹

In case you missed it, it’s not too long until Robinhood launch their service in the UK. They announced that they’ve got their license from the FCA not long ago -

& told Yahoo Finance that they’ll launch within the next 12 months.

The CEO for the UK was interviewed on the latest episode of 11:FS’s FinTech Insider podcast.

They have great looking app so I’m looking forward to checking them out. It’ll be interesting to see their pricing too, as they make about half of their revenue from selling order flow in the US, which is illegal in Europe so they might have to make some changes to their business model.

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FreeTrade better get a move on. Luckily their investment platform seems to be nearing completion. I am hopeful for them, but somewhat worried about timelines.

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Would you use Robinhood and Revolut besides Freetrade?

Or eToro?

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Won’t use eToro, I don’t do CFD trading.

I would prefer FreeTrade over RobinHood as it’s a U.K. company, and over Revolut as it’s the only thing FreeTrade does, so I suspect on the longer term you’d get a better experience and service there.

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Very interesting that despite all the free-commissions-pure-stocks-trading ads etoro run, even FS pro like you still think it’s a CFD play. Subtlety about brand impressions.

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I know they do commission free stock trading as well, but given their treatment of and charges for CFD customers - let’s just say I don’t trust them.

They use zero commission trading as a hook to get you into CFD, that’s where they make their money, but we also all know very very few CFD traders make any money themselves.

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This piqued my interest for a moment there but not sure I can trust a broker that would charge me $25 per withdrawal, not to mention the FX conversion fees

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oh didn’t realize they charge on FX

Freetrade charge FX commissions (or will do, if not currently), but I think it is a fairly low rate.

I wouldn’t use Revolut as I don’t really trust them and unless you sign up for their premium accounts you will only get a few trades a month for free

I would prefer to use Freetrade (as an investor and current user). I will however use Robinhood for stocks not available on Freetrade. So as @Marsares says, Freetrade better get a move on!

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If you’ve not had a chance to check out Robinhood’s app yet, the team at 11:FS are doing a review of the live, at the moment -

Does anyone use these at the moment with UK brokers or is this just for traders?

I’m a huge fan of trailing stop loss orders. Sadly my current broker doesn’t provide it and my old broker changed systems! :sob:

My personal view is this should be a hygiene factor for any investor. That might be my more adventurous trader side coming out but I’ll explain my view.

With my investments I try and place stop loss order which never expire, this is my attempt to protect myself against having my gains wiped out by a market movement that I wasn’t prepared for or I might not be actively looking at the price. It’s also to keep in line with the principle of letting winners run and cutting losers early.

Let’s say I buy Company X for £100 a share. I set my stop loss to be £90-95 (depending on volatility) what I am trying to achieve is setting what level of risk I’m willing to take on an investment, in this case I’m saying between 5-10% is how much I am willing to lose (take into account your commission charges with these calculations.)

Now this works fine to protect me from making a serious loss unexpectedly e.g. think Beyond Meat when they announced the next stock sale at a discount. However, it doesn’t protect your profits.

What I end up doing is checking in on the investment every few days or weeks to cancel stop loss orders and set them back up, with a higher stop loss price. Ideally locking in profits should I see an unexpected movement. However this requires a lot more management on my side and it isn’t always top of my priority list.

This is where a trailing stop loss comes into play. This is absolutely the protection I am looking for. It means I can keep a consistent level of risk while actively protecting my gains. This is far more common in the CFD/FX world and I don’t see why it shouldn’t be common place for regular trading.

Worst case an investment I love triggers my trailing stop loss. I lock in some profit. If I still like the investment even after the dip, I can buy back in at a cheaper price.

The downside is the price dips to trigger your stop loss and then the price rises again, meaning you exited earlier than you needed to. I see this as risk management, are you making a logical risk based decision, or an emotional one.

If you want to get really fancy you can mix and match trailing stops with trailing buys, to try and capture momentum, however you are blurring the lines around over trading and just setting up a momentum based trading system.

Bottom line for me is risk management, just because I like an investment at it’s currently valuation, will I feel the same way when it’s -20% down versus book cost? Will I then make an emotional or logical decision on what to do next? Will I end up holding onto loss making investments because I refuse to sell in a negative position?

Futures and Options trading books spend a lot of time thinking about risk management, I believe even my long term investments need that level of risk management in place to. When I make an investment I should have a strategy in place, and a trailing stop loss or even just a regular stop loss should be part of it.

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Big move by Robinhood, amazing time for them too with the other brokers removing their trading commissions as well. Very lucky timing!

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Quite impressed by how fast Robinhood’s rolling out new features!

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:new_moon_with_face: Not the most exciting demo they could have used tbh but I’m sure the design’s good!

Maybe it’s just me, but I don’t see what the whole hype about dark mode is about. Every company seems to join the bandwagon, even tiny startups with limited resources who surely can spend valuable dev time on other things. Yes, I get that in theory it’s just amending a CSS file, but there seems to be a lot of noise about something negligible.

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Strange that this hasn’t been stopped yet.

Slightly ironic that their users are now able to take from the rich (VCs funding the company) & give to themselves :wink:

Although -

The traders using what they called infinite leverage to supercharge their wagers could be held liable for the money and guilty of securities fraud, according to Donald Langevoort, a law professor at Georgetown University.

Here’s one example from yesterday :flushed:

& …

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It turns out this is nothing new :sweat_smile:

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Looks like they are targeting a early 2020 release according to their UK waitlist.

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