Public, the American stock brokerage startup, has expanded its services to the U.K. This marks their first international expansion since its launch in 2017. The app, supported by celebrities like Will Smith and Tony Hawk, will provide U.K. users with commission-free trading of over 5,000 U.S.-listed stocks during regular trading hours. Public plans to broaden its offering in the U.K. over time, including other asset classes such as ETFs, U.S. government bonds, and cryptoassets. They also have plans to introduce an “investment plans” tool that allows users to create customized recurring investments.
Public will face competition from well-established digital brokerage firms in the U.K., as well as upstarts like Revolut, Freetrade, and eToro. However, Public differentiates itself by offering lower foreign exchange fees compared to its competitors. While most competitors charge currency conversion fees on every trade, Public only charges fees on the deposited money, and at a significantly lower rate.
As for regulation, Public has partnered with Khepri Advisers Limited, an authorized and regulated firm, to provide its services in the U.K. They have chosen this route instead of applying for their own license. This approach is common among fintech companies. Public’s focus for international expansion is currently on the U.K., but they hope to expand to other European markets in the future.
Online brokerage platforms, including Freetrade, have been facing challenges due to rising costs of living. However, Public doesn’t face the same problems, as they have a healthy cash balance and no need to raise funds at this stage. They have already raised $300 million and have a valuation of $1.2 billion.
Public aims to avoid the fate of Robinhood, its U.S. peer, which abandoned its U.K. operation to focus on its home market. Public believes they don’t need to reinvent their business model to enter new markets and can expand with a lean team. Robinhood does have plans to reenter the U.K. following its acquisition of Ziglu, a cryptocurrency trading app.
In conclusion, Public’s expansion to the U.K. brings commission-free trading and a unique approach to foreign exchange fees. With a focus on customer experience and regulation, Public aims to succeed in the competitive brokerage market.
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