Robinhood scraps UK launch after criticism of US model
AN APP accused of tempting millions of inexperienced traders to invest in ultra-risky stocks has scrapped plans to launch in Britain.
San Francisco-based Robinhood put international expansion on hold amid mounting criticism of its US operations.
The firm has won over millions of millennial investors by making it easy to trade shares and complex financial instruments – but has also come under fire for features such as smiley faces that make investing seem like a game.
One user committed suicide last month after falling $730,000 (£573,000) into the red.
A spokesman said: “A lot has changed in the world, and we’ve made the difficult decision to postpone our UK launch indefinitely.”
The firm is also facing lawsuits from angry customers following a technical glitch that locked them out of their accounts during sharp swings in the stock market.
Robinhood said the problems were activated by a jump in trade volumes that it was unable to handle.
It said: “We are refocusing our efforts on strengthening our core business. We know many people in the UK were excited to invest through Robinhood, and we regret that we cannot deliver our product to UK customers.”
Bubbling over Taittinger, the champagne firm, has been given the green light for a Kent winery. It’s the first elite French house to set up a UK winery.