Interactive Investor

Robinhood IPO

Your guide to buying Robinhood shares with ii

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Please remember, investment value can go up or down and you could get back less than you invest. The value of international investments may be affected by currency fluctuations which might reduce their value in sterling.

About Robinhood

Robinhood is a US-based financial services company that offers commission-free investing. They are launching an IPO on 29th July 2021, with shares due to start trading on the Nasdaq. 

The company was founded in 2013 by Vladimir Tenev and Baiju Bhatt. It has since grown in size to over 20 million users, with more than £14.4 billion of assets under management. In September 2020, Robinhood was valued at £8.4 billion.

As well as being another multi-billion-dollar high-growth Wall Street flotation, the listing is interesting because Robinhood is setting aside up to 35% of the 55 million shares in the offer for its own customers.

Robinhood is the latest tech firm to take a different approach to the initial public offering (IPO) process that's traditionally dominated by the big institutions at the expense of retail investors.

Graeme Evans, Contributor at interactive investor

Read: Robinhood IPO: everything you need to know

Early investment in Robinhood is not available to UK retail investors, but you will be able to buy shares through ii on the first day they start trading.

Here’s how to buy Robinhood shares:

1. Robinhood (HOOD) first day of trading - 29th July 2021

On the day shares are admitted there will be an initial period of price stabilisation, after which trading commences. This may only be a few minutes but can take a few hours, as was the case with Alibaba when it floated in 2014.

Please note that during this period orders for Robinhood (HOOD) can only be accepted as Buy Limits until automated trading begins, between 14:30-21:00 GMT. Before this time, market best orders will be rejected.

Until we receive online shares data, HOOD will show as 'no results found'. Continue through and enter the trade details. Once you have this entered this, the preview order screen and 'Place Order' options will appear.

If you don’t already have an account, or you have an account that isn’t enabled for international trading, please follow steps 2-4 below.

2. Open an account

You can buy and hold Robinhood shares in our Trading AccountISAJunior ISA and SIPP. Simply choose which new account you wish to open.

Before you can buy US shares, you will need to complete steps 3 and 4 below. Find out more about US investing.

3. Complete the exchange agreements

You need to complete this form before you make your first international trade. We will ask you to complete the agreements the first time you search for an international share price. Find out more about US and international share dealing.

4. Complete a United States dealing (W-8BEN) form

Before you can buy US-listed shares you need to complete a W-8BEN form. You can find the form, and instructions for sending it back to us, when you visit our Useful Forms page. You don't need to do this if you are only investing in a SIPP. Find out more about foreign exchange.