Revolut to Launch Zero-Fee Stock Trading Services in US

London-headquartered challenger bank, Revolut is expanding its services in the United States and is going to launch a commission-free stock trading service in the country.

According to a CNBC report on Tuesday, the Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term platform has already secured a broker-dealer license from the US Financial Industry Regulatory Authority (FINRA), for which it worked for 16 months.

Revolut will operate as an introducing broker and has partnered with New Jersey-based DriveWealth for clearing the trades, the company confirmed to the publication.

The fintech has already been offering similar services in the European markets, but the model of its upcoming US services will be different. While the company keeps its distance from the controversial payment for the order flow (PFOF) model in Europe, it will use the same for generating revenue in the US.

Interestingly, the PFOF model is currently under the scrutiny of the US financial market regulator, the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission, but the leading zero-fee broker in the country, Robinhood, is still running its business under the model.

Riding on the Growing Retail Finance Demand

Revolut entered the US market last year as it has been focusing on aggressive expansion. However, most of its revenue is still generated from its services in the United Kingdom.

“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,” the Revolut Founder and CEO, Nik Storonsky said in a statement. “We’re eager to break down common barriers to entry around stock trading such as account minimums and complex interfaces.”

The status of Revolut as a challenger bank made top investors open their pockets to the company. The fintech closed its latest funding round last July, raising $800 million and with a valuation of $33 billion.

Apart from the broker-dealer license, Revolut applied for a banking charter in the United States to further expand its services in the country.