Robinhood launches margin investment in the UK
On October 21st, Robinhood announced the launch of margin investing in the UK, allowing clients to borrow from Robinhood and use their existing holdings to purchase additional securities to expand and diversify their portfolios.
Margin investing provides greater purchasing power as collateral based on the value of the assets in the client's investment account. UK retail investors have long faced challenges in accessing features similar to margin investing, which can provide more ways for them to maximise their investments. Traditional brokerages typically charge high fees and reserve prime rates for the super-rich, while the average investor has limited options.