Robinhood Adds FIFA World Cup Derivatives with $0.01 Fees, PDT Rule Removed
HOOD•Robinhood will route FIFA World Cup event derivatives via its CFTC-regulated JV Rothera, launching match, tournament, spreads, totals, and player contract predictions with fees capped at $0.01. The expiration of the $25K Pattern Day Trader rule spurred a 4% stock jump, bolstered by Goldman Sachs boosting its target to $105.
1. World Cup Derivatives Launch
Robinhood has introduced a suite of FIFA World Cup event contracts through its joint venture Rothera, a CFTC-regulated derivatives exchange and clearinghouse. Customers can now place bets on individual matches, group and tournament winners, spreads, totals and even player contracts, with commission fees capped at $0.01 per contract under the new pricing model effective June 1.
2. Pattern Day Trader Rule Expiration
The long-standing Pattern Day Trader rule, which required accounts to hold $25,000 in equity to execute four or more day trades within five days, expired, removing that barrier for smaller investors. This regulatory change led to a near 4% rally in shares as brokerages shift to a dynamic, risk-based margin framework instead of a static dollar threshold.
3. Analyst Outlook and Market Reaction
Following these developments, Goldman Sachs raised its price target on Robinhood from $95 to $105, citing increased product engagement and broader market access. Retail sentiment turned bullish as trading volumes rose, helping the stock recover from a three-session slump and positioning it for potential upside.
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