The Public.com platform allows users to buy or sell from a portfolio of over 5,000 stocks. On July 14, it expanded its services to the U.K.
Public.com, an American stock brokerage startup, launched its services in the U.K. on Thursday. This marks the company’s first international expansion since its launch in 2017. The platform, which has the backing of celebrities like Will Smith and Tony Hawk, will offer commission-free trading in over 5,000 U.S.-listed stocks to U.K. users during regular trading hours.
Public.com hopes to expand its offering in the U.K. over time to include other asset classes available in the U.S., such as ETFs, U.S. government bonds, and cryptoassets. The company also plans to introduce an “investment plans” tool in the future, which will allow users to create customized recurring investments.
In the U.K., Public.com will face competition from well-established digital brokerage firms like AJ Bell and Hargreaves Lansdown, as well as newer players like Revolut, Freetrade, and eToro. While these competitors generate revenue through commission charges, management fees, subscriptions, and other fees, Public.com differentiates itself by offering lower foreign exchange fees. According to Leif Abraham, Public.com’s co-CEO, most competitors in the U.K. charge currency conversion fees on every trade, whereas Public.com only charges it on deposits, with significantly lower fees.
To provide its services in the U.K., Public.com has partnered with Khepri Advisers Limited, an already regulated firm, instead of applying for its own license. The platform will operate as an appointed representative of Khepri Advisers Limited, which is authorized and regulated by the Financial Conduct Authority.
Despite the challenging market conditions faced by online brokerage platforms, Public.com remains optimistic about its prospects. The company has a healthy cash balance and has already raised $300 million from investors. It has no immediate plans to raise additional funds. Public.com aims to avoid the fate of its U.S. peer Robinhood, which exited the U.K. market in 2020. Public.com’s business model allows for lean operations and easy expansion into new markets.
While Robinhood plans to reenter the U.K. market by the end of 2023, Public.com believes its approach, which doesn’t require significant changes to its business model, will ensure its success in the U.K. and future expansions.