Public.com to shut down UK operation after eight months

Rick Steves

Public.com’s UK withdrawal reflects broader market dynamics, where increased competition among retail investing platforms, including newcomers like Robinhood and Webull, pressures companies to consolidate their efforts in their most profitable or strategic markets.

Public.com has announced its decision to exit the UK market only eight months following its launch, with the aim of concentrating on its US operations, according to a City A.M. report.

The US-based stock trading platform informed its UK users via email, which City A.M. had access to, that it would cease operations in the UK from May 3rd, but its US business would not be affected by this change. Further details from a spokesperson revealed that all UK accounts are set to be closed after April 2024.

The spokesperson elaborated on the reasons behind this strategic pivot, citing the platform’s rapid growth in the US market, fueled by recent introductions such as a high-yield account offering five percent interest, corporate bonds, and options trading. This success led to the decision to refocus efforts and resources on the US market, the spokesperson claimed.

Public.com launched in the UK last year after raising $300 million

Public.com, headquartered in New York, had offered UK users the opportunity to invest in a variety of financial instruments, including US stocks, ETFs, treasuries, alternative investments, and cryptocurrencies.

This move to suspend UK operations comes quite as a shock as the brokerage firm was enthusiastic about entering the FCA-regulated market last year, when CEO Leif Abraham said: “London and the broader UK market has always been the financial epicenter of Europe, so it’s a natural place for Public to start our international expansion.”

The international expansion of Public followed a $300 million funding round with investors including Accel, Greycroft, Lakestar, Maria Sharapova, and JJ Watt, the new owner of Burnley FC.

The move raises questions about the future of Public.com’s London office and its employees. The company, which is based in New York, also has operations in Amsterdam and Copenhagen.

Public.com’s UK withdrawal reflects broader market dynamics, where increased competition among retail investing platforms, including newcomers like Robinhood and Webull, pressures companies to consolidate their efforts in their most profitable or strategic markets.

The UK market’s competitiveness, highlighted by the recent entry of multiple US firms, has led to intense scrutiny of the market’s capacity to support new entrants.

This environment has made the UK a difficult market for US brokers to succeed in, as evidenced by Robinhood’s initial struggles to launch in the UK. Public.com’s decision to exit the UK market is a significant development in the ongoing evolution of the global retail investing landscape, marking a retreat in the face of mounting competition and market saturation challenges.

Webull also launched in the UK last year after securing authorization from the FCA in October 2022. FX & CFD industry veteran Nick Saunders is leading the UK operation of Webull. The executive was appointed in September 2021 to get the broker ready for the 2023 launch, including securing an FCA license and the hiring process.

FXCM-sister company Tradu was the latest trading platform to launch in the UK, in December 2023.

Read this next

blockdag

BlockDAG’s Explosive Presale Hits $20.3M In April Swaying Investors From XRP’s Price Trends Upward, & Polygon’s NFT Market

Learn about BlockDAG’s impressive $20.3M presale results, XRP’s price increase prospects, and the booming NFT market on Polygon among the top 10 cryptocurrencies.

Retail FX

Financial Commission warns of Eplanet Brokers

The Financial Commission, a self-regulatory compliance specialist for the financial services industry, is ramping up its scrutiny of unregulated brokerage firms. Today, the independent association warned against a company called Eplanet Brokers.

Retail FX

Dubai crypto exchange steps into prop trading

Dubai-based cryptocurrency trading platform, CoinW Exchange, marked its sixth anniversary by announcing a rebranding initiative and launching a proprietary trading product.

Fintech

Bitcoin payments app Strike launches in Europe

Bitcoin blockchain-based payments app Strike launched in Europe on Wednesday, allowing users in the region to buy, sell, and withdraw bitcoin (BTC).

Chainwire

Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.

blockdag

BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

<