US online brokerage Robinhood coming to Asia in 2025 with Singapore HQ

New York - Robinhood Markets will expand into Asia in 2025, tapping Singapore as its local base in the region, chief executive Vlad Tenev said.

“We plan to be serving customers across Asia soon,” Mr Tenev said on Dec 4 at the firm’s investor day in New York.

The global expansion announcement comes on the heels of the US-based company entering Britain in 2024, offering some, though not all, of its trademark services to customers there. 

In the past year, Robinhood has been seeking to expand in international markets, as the financial technology giant hunts for growth beyond its home market, where trading activity has waned following a pandemic-induced boom.

Looking ahead, Robinhood “has approval to expand its product offering in the UK and announced plans to open an Apac (Asia-Pacific) office in Singapore and acquire brokerage licences in the region”, Citigroup analyst Christopher Allen wrote in a note.

Robinhood’s foray into Asia comes at a time when competitors like China’s Tiger Brokers and Futu Holdings are expanding internationally, as they continue to shift away from their home market after a regulatory crackdown.

That could intensify competition in the industry, which is already struggling with rising costs.

Singapore has emerged as a market of choice for these online brokerages thanks to its status as a global wealth hub, as well as its stable rule of law and an efficient government.

Mr Tenev also said the retail brokerage will expand its contracts offerings linked to specific events – potentially even to sports competitions – building on the firm’s success with those tied to the 2024 US presidential race. 

Long dominated by high-profile names like Vanguard, Charles Schwab and Fidelity Investments, the US brokerage industry saw its first disruption in decades when Robinhood pioneered commission-free trading in 2013.

It has been credited with bringing change to the US stock market industry by making trading of certain stocks and exchange-traded funds accessible by app 24 hours a day, five days a week. 

The 11-year-old trading app, which became synonymous with mom-and-pop investors in 2021, is now seeking to mature into a full-fledged financial services provider and compete with established brokerages that serve institutional investors.

The firm had 11.8 million monthly active users and 1.98 million premium customers, as at June 30.

Robinhood’s shares have more than tripled in 2024, climbing 3.5 per cent to US$40 in New York on Dec 4. BLOOMBERG, REUTERS