Robinhood Available Countries
Robinhood only serves customers and residents of the United States. While they had plans for international expansion, the UK launch was postponed indefinitely in 2020 due to market instability and other regulatory issues the company faced during the GameStop short squeeze controversy. Currently, Robinhood holds licenses only from FINRA and SIPC, functioning as a registered broker-dealer and licensed money transmitter.
Robinhood Restricted Countries
It is currently available exclusively in the United States, with all other countries being restricted. However, within the U.S., trading restrictions can still be encountered due to various circumstances. Users declaring themselves as a control person for a company, for instance, will be prevented from trading that company's stock. Restrictions can also arise from issues like transfer reversals, outdated information, fraud inquiries, and account levies. Notably, such limitations extend to stock and cryptocurrency trading until the issues are resolved.
Does Robinhood Require KYC?
To get started with Robinhood, an investment platform that democratizes finance for all, applicants must fulfill certain prerequisites ensuring they align with U.S. regulatory standards. These criteria include being at least 18 years old, possessing a valid Social Security Number rather than a Tax Identification Number, and having a legitimate U.S. residential address within the 50 states or Puerto Rico, with provisions for U.S. military personnel overseas.
Eligibility extends to U.S. citizens, permanent residents, or holders of a valid U.S. visa, although restrictions apply to nationals from countries under U.S. sanctions. The process involves submitting an application via the Robinhood app, after which applicants might be prompted to provide additional documentation to verify their identity. This step is part of Robinhood's commitment to adhering to the SEC customer identification mandate under the USA Patriot Act of 2001, aiming to prevent financial crimes and terrorism financing.
Will Robinhood Expand to the UK and EU?
In a significant move towards global expansion, Robinhood recently announced the acquisition of Ziglu, a crypto asset firm. This allows U.K. customers to engage with multiple tokens, earn yields, and make free money transfers. The integration aligns with Robinhood and Ziglu's shared mission to lower barriers to entry for new investors. In the immediate future, no changes are planned for current Ziglu customers.
However, the long-term strategy includes fully integrating Ziglu into Robinhood, extending the brand overseas, and expanding operations beyond the U.K. and Europe. This development also aims to diversify Robinhood following decreased active users and average revenues per user in recent quarters.
Closing Thoughts
To sum up, Robinhood is an American trading platform headquartered in Menlo Park, California. While its services are primarily tailored for the US market, the company has shown a keen interest in global expansion, as evidenced by its acquisition of Ziglu. However, its U.K. launch was put on hold in 2020 due to regulatory and market challenges, including the GameStop controversy.
Robinhood operates under licenses from FINRA and SIPC, and while it has a broad reach within the country, there are specific trading restrictions that users may encounter. The acquisition of Ziglu indicates a strategic move to extend Robinhood's brand and services beyond the U.S. potentially into Europe, although regulatory compliance remains a significant hurdle. Therefore, while it has ambitions to become a global platform, its services are currently limited to the United States.