Revolut has expanded its offerings in the United States by enabling commission-free stock trading services for its American customer base. With this, the company is aiming to become a ‘financial supperapp’.
Announced on Wednesday, the app will allow the buying and selling of around 1100 listed securities and 200 exchange-traded funds (ETFs). Additionally, it will allow customers to trade full or fractional shares.
Revolut, which has 18 million customers, is already offering share trading services to its United Kingdom customers. The company entered the US market as a banking app in March 2020 and obtained a broker-dealer license in September 2021 for launching share trading services.
“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,” said Nik Storonsky, the Co-Founder and CEO of Revolut.
“Understanding stocks are serious financial investments, we’ve built an inclusive, user-friendly product that equips consumers with everything they need to trade with confidence.”
Zero-Fee Boom
With the new services, Revolut will challenge the likes of Robinhood, Charles Swab, and a few other big American brands that are already offering zero-fee stock trading services in the country.
Moreover, the British company will use the controversial Payment for Order Flow (PfOF) model for generating revenue with its commission-free stock trading services. Interestingly, the US financial market regulator has expressed concern over this model and is now considering whether to ban it or not.
Gabriel Vallejo, the Head of Revolut’s wealth and trading team in the US, confirmed that the company is prepared in case of regulatory rule changes.
Revolut was valued at $33 billion in its last funding round, making it one of the most valued fintech platforms. In Europe, the company is focused on expansion and has launched banking services in almost all of the European Economic Areas (EEA), except for a few jurisdictions.
