Financeupdated 1h ago2 min read
Robinhood Launches Commission-Free US IPO Access for UK Retail Investors
5outlets comparedWhere the coverage agrees
3 Western Alternative2 OtherThis article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
UK Robinhood customers can request US IPO allocations at offer price before trading. The service is commission-free for UK users.
Save coverage image
Robinhood expands IPO access
Robinhood launched IPO Access in the UK, letting UK retail investors request shares in eligible US initial public offerings at the official offer price before public trading opens. Robinhood said UK customers can use their existing investment accounts to review offering documents in the app and request shares without paying trading commissions. Robinhood said it has participated in more than 50 IPOs since launching the service in the US in 2021, and it did not identify which upcoming US IPOs would be available to UK investors.
Robinhood’s UK launch followed its third-quarter earnings report in October, when the company reported record revenue of $1.42 billion and net income of $476 million. The app includes the prospectus and SEC filings for each available listing, and IPO Access lets UK customers request allocations at the official IPO price before public trading begins.
How requests are submitted
Robinhood said UK customers can submit IPO allocation requests through their general investment accounts, and the requests will appear alongside their portfolios in those accounts. Robinhood said customers can read the prospectus and US filings for each available listing in the app before deciding whether to request shares. Robinhood partners with a UK Public Offer Platform provider to give UK retail customers the opportunity to participate in eligible IPOs before shares begin trading on the public market.
Robinhood is working with a UK Public Offer Platform provider to provide access to eligible initial public offerings, and Robinhood does not charge commission fees for the service. TradingView said Robinhood will charge no commission and that customers can request shares at the official offer price before trading starts, the company said.
Risk, volatility, and context
Robinhood warned that investing in IPOs involves significant risk and that share prices can be highly volatile, particularly shortly after listing. TradingView said Robinhood’s disclosure says IPO share prices can be highly volatile, particularly soon after listing, and it cited the company’s disclosure in its report. The launch follows Robinhood’s August rollout of crypto trading to eligible UK customers through Bitstamp, the exchange it acquired for $200 million last year.
Robinhood shares (HOOD) closed at $80.91 on Friday, gaining 3.2%, and the stock traded at $79.50 in premarket trading on Monday. TradingView said British investors used the same regulatory route in June, when they bought about $364 million of stock in SpaceX's Nasdaq IPO, City AM reported.