Robinhood took another step in expanding its futures trading capabilities by collaborating with CQG, a provider of trading technology for brokers, commercial hedgers, and exchanges.

According to the announcement, the collaboration will integrate CQG’s infrastructure to handle all future order routing for Robinhood’s derivatives customers and improve trade execution.

As of the end of January, Robinhood reportedly had 25.5 million funded accounts and $204 billion in assets under custody. The platform has been growing its presence in derivatives trading, and this partnership with CQG now aims to enhance its order execution process.

Robinhood and CQG

CQG provides technology solutions for market participants ranging from retail traders to major financial institutions and exchanges. Ryan Moroney, CEO of CQG, highlighted the increasing interest in futures and options among retail investors.

"There is phenomenal, growing interest by retail investors in futures and options, and we're delighted to play a role in meeting that need. CQG has been a pioneer in offering robust technology and connectivity for the futures industry for 45 years, and we've recently expanded into multiple asset classes,” he said.

“We're honored that Robinhood, which has invested considerable resources and ingenuity into its popular, user-friendly mobile app, chose our technology to provide the 'pipes' for its critical ability to route orders rapidly and successfully to trading venues across the globe."

With this partnership, Robinhood’s U.S. customers can reportedly access future products from CME Group across major asset classes. These include key U.S. equity indices such as the S&P 500, Nasdaq-100, Russell 2000, and Dow Jones Industrial Average, as well as bitcoin and ether, major foreign exchange currency pairs, key metals, crude oil, and natural gas.

Expanding Robinhood’s Trading Capabilities

Robinhood will reportedly leverage CQG’s application programming interface (API) to manage order routing for futures trades, non-U.S. equity, and equity options transactions.

“Implementing CQG will be seamless to our customers while providing a robust backbone to their trading experience. I've personally used and deployed CQG technology and know firsthand the firm's commitment to excellence, resilience, and stability,” said JB Mackenzie, Vice President and General Manager of Futures and International at Robinhood.

This move is reportedly part of a broader strategy to solidify Robinhood’s position in the futures market and provide its users with a more seamless trading experience.