Robinhood to Give Traders Access to Futures, Index Options

Robinhood to Give Traders Access to Futures, Index Options · Bloomberg

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(Bloomberg) -- Robinhood Markets Inc. is broadening its offerings to futures trading and index options as the retail brokerage aims to attract more sophisticated investors to its platform.

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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 Inc.-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.

“For a certain type of customer that is much more advanced and sophisticated, these products fill a need,” Robinhood Chief Executive Officer Vlad Tenev said in an interview Thursday with Bloomberg Television.

Beyond the expansion into futures trading and index options, Robinhood also is rolling out a browser-based trading platform that’s more akin to those offered by Interactive Brokers Group Inc. and Charles Schwab Corp., which are geared toward more mature investors and allow for advanced customization. Both the new offerings and the trading platform are indicative of Robinhood moving beyond its meme-stock days and into an era of challenging the incumbents.

“In looking at the landscape of trading tools and by talking with active traders, we realized there is frustration with legacy offerings,” Steve Quirk, chief brokerage officer for Menlo Park, California-based Robinhood, said in a 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 unveiling a revamped desktop platform for traders.

Robinhood’s reworked trading platform is available to customers immediately, while futures trading and index options will roll out in the coming months, the firm said without providing an exact time line.