Source: financemagnates:2025/1/30
Robin Hood (NASDAQ: HOOD) is expanding its offerings by adding futures trading with “S&P 500, oil, bitcoin, and more.” The broker announced yesterday (Wednesday) that it has already started offering futures trading.
Futures Trading’ Coming Soon“
However, the US broker did not set a date for the launch of futures instruments on a larger scale. A dedicated page on Robin Hood’s website also indicates that it will launch futures trading with forex pairs, cryptocurrencies, indices, and commodities.
The platform will offer futures contracts for forex, indices, commodities and cryptocurrencies.
Cryptocurrency futures will be settled in cash.
As explained on the website, Robin Hood will offer four cryptocurrency futures products: Bitcoin futures, Micro Bitcoin futures, Bitcoin Friday futures, and Ethereum futures. All these instruments will be settled in cash.
The site also assures that it will offer “low commissions”, along with free and real-time market data. However, Robin Hood’s plans to launch futures trading are not new. It first announced upcoming services last year.
Can HOOD disrupt futures trading as well?
Founded in 2013, Robin Hood has transformed the American brokerage industry with its commission-free model. Its influence has led old giants such as Vanguard, Charles Schwab and Fidelity to adopt similar trading options without fees for individual investors. According to the company, it has 24.8 million funded customers and $195 billion in assets under custody.
The broker generates most of its trading revenue from options trading. In the third quarter of 2024, it generated $637 million in revenue, of which $319 million came from transaction-based activities. Options trading alone generated $202 million, followed by cryptocurrencies and stocks at $61 million and $37 million, respectively.
Robinhood has benefited greatly from cryptocurrencies over the years due to its exposure of some popular tokens, including meme coins. Now, it is focused on expanding crypto services in Europe and has even launched storage services with certain tokens for its European customers.
However, the US broker did not set a date for the launch of futures instruments on a larger scale. A dedicated page on Robin Hood’s website also indicates that it will launch futures trading with forex pairs, cryptocurrencies, indices, and commodities.
However, with stable futures traded in cash in the United States, they will compete with CME Group, the nation’s largest futures exchange, and the Coin base Derivatives Exchange, which offers futures contracts for Bitcoin, Ethereum and some other altcoins.
However, Robin Hood’s plans to launch futures trading are not new. It first announced upcoming services last year.
