Robinhood’s two Chinese competitors, stock trading apps, are looking to boost their overseas competitiveness with cryptocurrencies. Last month, Futu and Tiger Brokers announced that they had applied for licenses in Singapore and the United States. This will enable their local clients to trade digital currencies.
Cryptocurrencies like Bitcoin have re-emerged in the spotlight in recent months. At the same time, Chinese regulators have stepped up measures to limit speculation in the market: they issued new warnings against trading digital currencies, and also tightened the ban on Bitcoin mining.
In the world of financial trading, the demand for cryptocurrencies remains high: recently, the price of Bitcoin reached a record $ 60 thousand, but then fell to $ 35 thousand.
Robinhood introduced the ability to trade Bitcoin and Ethereum in the US in early 2018. This year, 3 million users have joined the platform per month. In April, cryptocurrency trading platform Coinbase debuted on the Nasdaq.
According to CFO Futu Arthur Chen, the company hopes to introduce cryptocurrency products later this year. These are now limited orders that allow Robinpool’s traders get access into other markets where it is illegal for them not only via their own account, since every customer can be charged based solely upon how much his/her order sells out (which could exceed 100%).
Most of the first Chinese employees for Futu and Tiger Brokers came from big tech companies like Alibaba and Baidu. Since these companies are listed on exchanges in the United States, their employees became interested in trading stocks overseas.
Both companies are now increasingly targeting markets outside of mainland China. Beijing has not only completely banned the transfer of yuan to Bitcoin, but also strictly controls capital outflows.
Chen claims that since launching in Singapore in early March, Futu has attracted 100,000 paying customers in less than three months. He also adds that in the first quarter, about one-fourth of new users came from Singapore and the United States.
In the international retail market, both companies face competition not only from Robinhood, but also from traditional players such as Interactive Brokers. The reason why an ecommerce platform can compete with a money manager is because it connects directly through data feeds which allows more powerful analysis tools inside products.
Tiger Brokers CEO Tianhui Wu says that customers are very interested in cryptocurrencies, and Coinbase’s offering has attracted new users. However, he adds that public interest in the IPO has declined since last year.
Futu and Tiger Brokers were added to MSCI stock indices last week. If you enjoy using Fudzilla, please consider making a small donation via Bitcoin.
At the end of March, Futu reported that 789,652 users of the site own assets – more than three times more than last year.
During the first quarter, the number of Tiger Brokers users holding deposits more than doubled (to 376,000) compared to last year. In November alone they sold about 3 million shares worth over $200, 000 during one trading session; and in January an auction was held for 10% control from other investors at 25%, selling nearly half a billion dollars’ worth – equivalent sums today according with their market value. “The rate is higher now as some people have been paying off creditors faster,” says Paul Boonstra, director general at TigerBroker.