Robinhood Targets Traders With Bitcoin Futures & New Desktop Platform

Robinhood is moving into the futures market, adding Bitcoin and Ethereum contracts to its trading app in the coming months.

The company aims to attract seasoned traders with its low fees and user-friendly interface, positioning itself as a competitor to established players like Charles Schwab and Morgan Stanley’s E*TRADE.

The announcement, made during Robinhood’s first-ever customer conference, HOOD Summit, revealed plans to offer a range of Bitcoin and Ethereum futures contracts, including micro futures designed for smaller-scale investors.

“With some of the lowest fees in the industry and an elegant mobile interface, there will be no reason to trade futures anywhere else,” said JB Mackenzie, Robinhood’s vice president and general manager of Futures and International.

The move comes as the cryptocurrency market heats up, with Bitcoin approaching its all-time high. Robinhood’s entry into the futures market could further drive interest among crypto traders looking for more sophisticated exposure to digital assets.

Robinhood Legend: A Desktop Platform for Active Traders

Robinhood also unveiled its new desktop platform, Robinhood Legend. Designed specifically for active traders, the platform offers advanced charting tools, customizable layouts, and real-time data, including the ability to trade futures and index options directly from the app.

“With Robinhood Legend, futures, and index options, we’re helping customers harness the full power of the markets so they can take control of their financial future,” said Vlad Tenev, Chairman and CEO of Robinhood.

“By talking with active traders, we realized there is frustration with legacy offerings,” said Steve Quirk, chief brokerage officer at Robinhood. “Moving back and forth between apps or charting platforms can be cumbersome and time-consuming. We set out to reimagine what a modern, intuitively designed active trading platform should look like.”

Source: Robinhood

Here’s how Robinhood is stepping up its game for active traders:

Advanced Trading Tools: Users now have the ability to display up to 8 charts in one window, with customizable settings and a variety of chart types like candlestick, line, and Heikin Ashi. Traders can also apply a wide range of technical indicators—think moving averages, Bollinger Bands, Ichimoku Cloud, VWAP, and more. Add in tools like trend lines, Fibonacci retracements, and horizontal lines, and you have a highly customizable analysis experience. Data intervals can even be adjusted down to the tick, offering extreme precision.

Enhanced Analysis Capabilities: Beyond just charts, Robinhood Legend delivers powerful analysis tools, allowing traders to monitor and assess their watchlists, open orders, positions, and option contracts. A comprehensive set of metrics keeps traders fully informed and in control, providing everything they need to evaluate their next move.

Real-Time Data: Stay in the loop with real-time data that refreshes at sub-second intervals, ensuring you’re always up to date with the market’s rapid changes.

Customizable Layouts: Whether you prefer a custom-designed workspace or want to start with a pre-built template, you can set up your perfect trading environment in seconds. Tailor it exactly to your workflow or select from a range of pre-configured options to get going quickly.

Streamlined Trading: Executing trades is easier than ever. With a single click, you can open order forms directly from your watchlist, your positions, or an option chain. You can even trade straight from the chart, cutting down on unnecessary steps and getting you into the market faster.

Dynamic Linking: Robinhood’s new feature lets you link widgets across layouts, tabs, and even monitors. With this, you can sync symbols instantly, ensuring that your trading tools and views are always aligned and working together seamlessly.

Robinhood Legend will further support futures and index options trading as it continues to roll out through 2024.

Source: Robinhood

Expanding Beyond Crypto

While Bitcoin and Ethereum futures are a significant part of Robinhood’s expansion, the company is also adding futures contracts for other assets like oil and the S&P 500 index. This broader approach reflects Robinhood’s strategy to cater to a wider range of investors, including those seeking exposure to traditional markets.

Robinhood’s move into the futures market puts it in direct competition with established players like Charles Schwab and E*TRADE, which already offer crypto futures. However, Robinhood’s low fees and user-friendly interface could give it an edge, particularly among younger and less experienced traders.