Robinhood
Markets (NASDAQ: HOOD) has announced a significant expansion of its trading
offerings, introducing index options, futures trading, and a new desktop
platform called Robinhood Legend. At its first-ever HOOD Summit in Miami yesterday
(Wednesday), the popular zero-commision trading platform confirmed a push to cater
to more sophisticated retail investors.

Robinhood Targets Active
Traders with Index Options, Futures Launch

In
partnership with Cboe Global Markets, Robinhood will soon offer index options
trading on its platform, including popular products such as S&P 500 Index
(SPX) options, Cboe Volatility Index (VIX) options, and Russell 2000 Index
(RUT) options. This addition responds to growing demand from retail investors
for more advanced trading tools and risk management strategies.

“As
our customers have grown, they have asked us for access to more advanced assets
including index options, which allow them to diversify their portfolio and
better manage risk,” Steve Quirk, Chief Brokerage Officer at Robinhood, stated.

According to the company’s
latest financial report for Q2 2024, options trading was one of the key revenue
drivers, increasing by 43% year-over-year to $812 million. The company’s total
net revenues for the reported period amounted to $682 million.

Alongside
index options, Robinhood is launching futures trading directly in its mobile
app, allowing traders to trade contracts on assets like the S&P 500, oil,
and Bitcoin .

Perhaps the
most significant announcement is the introduction of Robinhood Legend, a
browser-based desktop trading platform designed for active traders. The
platform offers advanced charting capabilities, real-time data, and
customizable layouts, aiming to compete with established offerings in the
active trading space.

“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,” Vlad Tenev, Chairman and CEO of Robinhood, added.

The
expansion comes as the options trading market continues to see significant
growth. In 2023, US options volumes exceeded 11 billion contracts, marking the
fourth consecutive year of record activity. This trend has continued into 2024,
with average daily volumes reaching 47 million contracts in the third quarter,
an 8% increase from the previous year.

Education and Promos

To support
the rollout of these new offerings, Robinhood is also enhancing its educational
resources. The company plans to provide articles on futures trading through its
Robinhood Learn platform and will release a series of educational YouTube
videos in the coming months.

As part of
the HOOD Summit launch, Robinhood is offering bonuses for customers who
transfer assets to the platform by October 27, including a 1% bonus on
brokerage account transfers and a 3% bonus on IRA transfers for Gold
subscribers.

The new
features will be rolled out gradually over the coming months, with Robinhood
Legend already available to some users and futures and index options set to
launch on the mobile app in the near future.

A few weeks ago, the company also introduced cryptocurrency transfers for
users in the European Union. “Support for deposits and withdrawals gives
customers more control over their crypto,” Robinhood commented.