Robinhood (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 begun rolling out futures trading.
Futures Trading “Coming Soon”
However, the American broker did not specify a date for the wider launch of the futures instruments. A dedicated page on Robinhood’s website also indicates that it will launch futures trading with forex pairs, cryptocurrencies, indices, and commodities.
Futures trading has begun rolling out. Stay tuned. https://t.co/9Y1f57nuwb
— Robinhood (@RobinhoodApp) January 29, 2025
As seen on the website, Robinhood will offer four crypto futures products: Bitcoin Futures, Micro Bitcoin Futures, Bitcoin Friday Futures, and Ether Futures. All these instruments will be cash-settled.
The website also highlights that it will offer “low commissions,” along with free and real-time market data.
However, Robinhood’s plans to launch futures trading are not new. It first teased the upcoming services last year.
Can HOOD Disrupt Futures Trading Too?
Founded in 2013, Robinhood transformed the American brokerage industry with its zero-commission model. Its impact prompted legacy giants like Vanguard, Charles Schwab, and Fidelity to adopt similar zero-fee trading options for retail 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 brought in $202 million, followed by cryptocurrencies and equities at $61 million and $37 million, respectively.
Robinhood has benefited significantly from cryptocurrencies over the years due to its offering of some of the trending tokens, including memecoins. Now, it is focusing on expanding crypto services in Europe and has even launched staking services with certain tokens for its European customers.
However, with cash-settled futures trading in the US, it will compete with CME Group, the largest futures exchange in the country, and Coinbase Derivatives Exchange, which offers futures contracts for Bitcoin, Ether, and a few other altcoins.
