Why can’t I trade ETFs? | Robinhood

Why can’t I trade ETFs?

Within your Robinhood UK account, you can look up and view details about US exchange-traded funds (ETFs) just like other stocks. However, you’re not allowed to purchase ETFs listed and traded in US markets within the UK because of UK and European regulations.

What’s an ETF?

An ETF is a collection of assets, such as stocks, bonds, or derivatives, where the ownership of the fund is divided into shares that you can track and trade like other securities in the stock markets. ETFs let you invest in a group of companies all at once that are typically grouped by a broader market, a sector, an industry, or even a region.

To learn more, check out What is an Exchange-Traded Fund (ETF)?

Why can’t I trade ETFs in the UK?

Since 2018, investors in the European Union and the UK cannot invest in ETFs that are listed and traded in US markets. This is because rules (PRIIPs) enforced in 2018 require providers of investment products to supply retail investors with regulatory documents, such as a Key Information Document (KID), to help them better understand the product they are buying. ETFs listed and traded in US markets don’t provide these documents.

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Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

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Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.