Robinhood Markets is broadening its offerings to futures trading and index options as the retail brokerage seeks to attract more sophisticated investors to its platform.
The futures contracts investors will be able to trade include stock indexes, currencies, metals and energy including natural gas and crude oil, with an access commission of 50 cents for Robinhood Gold members and 75 cents for other customers. Cryptocurrency futures will also be available, the company said Wednesday, confirming an earlier Bloomberg News report.
The firm also will offer CBOE Global Markets-supported index options at 35 cents per contract for Gold members and 50 cents for other clients.
Robinhood and other brokerages are vying for customer loyalty after the pandemic prompted many novice investors to look into capital markets. They've broadened their businesses to include more assets, longer trading hours and other investing capabilities.
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Beyond the expansion into futures trading and index options, Robinhood also is rolling out a browser-based trading system that's more akin to those offered by Interactive Brokers Group and Charles Schwab, which are meant more for experienced investors and allow for advanced customization.
"In looking at the landscape of trading tools and by talking with active traders, we realized there is frustration with legacy offerings," Steve Quirk, the chief brokerage officer for Menlo Park, California-based Robinhood, said in the statement. "Moving back and forth between apps or charting platforms can be cumbersome and time consuming."
On the redesigned trading platform, customers can have as many as eight charts in a single window with dozens of settings and access to candle, line and other chart types. Competitor Fidelity Investments said earlier this month it's releasing a revamped desktop platform for traders.
Robinhood's reworked trading platform is open to customers immediately, although futures trading and index options will roll out in the coming months, the firm said without providing an exact time line.
Vlad Tenev, Robinhood founder and chief executive officer, has also looked to extend the company into international markets, especially as it offers more cryptocurrency-focused forays. Robinhood pegged the announcement of the updates to the firm's first customer-focused conference, being held in Miami this week.
