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Chinese trading apps want to compete with Robinhood in the crypto space

Trading apps rely on the ongoing crypto boom. (Photo: Shutterstock)

In China, trading in cryptocurrencies is coming under increasing pressure – but the interest of users around the world has risen sharply. Two Chinese trading apps are now jostling for US customers.

The Chinese trading apps Futu and Tiger Brokers have apparently applied for licenses to trade cryptocurrencies in the US and Singapore. With this, the Robinhood competitors want to become more attractive for international users. In their home country China, on the other hand, it is increasingly difficult for providers in the crypto sector, the Chinese government is increasingly taking action against trading in digital currencies and Bitcoin mining.

Trader: Interest in cryptocurrencies increased

Interest in cryptocurrencies and trading with them has risen sharply due to the prices that have exploded since last autumn and until the current slump. According to CNBC For example, the trading platform Robinhood, which has been trading Bitcoin and Ethereum in the USA since 2018, recently won three million new users a month for its crypto area.

Of course, this has not escaped the Chinese competition, as Futu CFO Arthur Chen told CNBC. Chen hopes that his company will be able to offer cryptocurrency products by the end of the year. Tiger Brokers CEO Tianhua Wu is saying the same thing. In particular, Coinbase’s IPO in April attracted new users, Wu said. However, the general interest in trading in new shares of companies after the IPO declined compared to the previous year.

Increased number of users of trading apps

Both Futu and Tiger Brokers have grown significantly in terms of user numbers in the past few months. Futu, for example, had almost 790,000 customers at the end of March – driven by activities in the USA and Singapore. This corresponds to a tripling compared to the previous year. At Tiger Brokers, the number of customers doubled to 380,000 in the first quarter compared to the same period in the previous year.

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Both trading apps are not only increasingly focusing on international markets, but also on a kind of social network in their app. There, users should be able to exchange their trading ideas and learn more about investing in video courses.

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