Revolut Now Commission-free – Zero Fee for Stock Trading in the United States
After sixteen months of modeling an App, Revolut eventually launched commission-free stock trading services in the United States. This amazing move comes amid a broader surge in retail trading which escalated last year when investors rushed onto the so-called ‘’meme stocks”.
The app started as a way for people to avoid currency conversion fees while traveling, but quickly added banking, trading, and crypto features among dozens of products. On top of that, Revolut added that they are eager to break down common barriers to entry into stock trading; such as account minimums and complex interfaces.
With only one year since its entry into the United States, Revolut announced that the app will allow users to buy ETFs and shares of NYSE- and Nasdaq-listed companies. As a result, the company will allow fractional share purchases and invest spare change from card transactions.
Founded in 2015, Revolut has grown to become one of the dominant European consumer fintech firms by continually piling on new features. With 18 million customers globally, the company stands as a worrying competitor of Robinhood Markets Inc and Charles Schwab Corp brokerages in the red-hot world of retail trading. This motivates Revolut to the direction of crowning itself a financial ‘’Superapp’’.
Nik Storonsky, the Co-Founder and CEO of Revolut said, “Over the last 18 months, Revolut’s core focus in the U.S. has been to design an app that meets the financial needs of the modern U.S. consumer, and launching stock trading is the natural next step in this effort,”.
“We are building a single app where people can manage all aspects of their finances, from banking and foreign exchange to cryptocurrency and stock trading,” Storonsky Insisted.
The Expansion path
For Revolut to obtain revenue through its commission-free trades, it should embrace payment for order flow (PFOF). This is a practice in which brokers route trades to market makers for a fee. It is also connected to the main avenue used by Robinhood to generate revenue.
Nevertheless, Revolut got a hit after The Securities and Exchange Commission announced their current consideration to outlaw the practice or not. The agency claimed commission-free stock trading may encourage investors to trade more, to capture more PFOF.
Vallejo noted that Revolut is not concerned about the SEC review and he expected Revolut will be able to evolve should the rules change.
“We’re confident we can continue to offer this product to our customers in the most efficient manner possible,” he added.
Revolut is a digital bank. It started as a travel card that provided cheap exchange rates. It is the fastest-growing digital bank with the widest range of features.
