Revolut Introduces a Fee-Free Share-Trading Service
- The British mobile bank Revolut unveils a trading option for Metal cardholders.
- Goal: Streamline share-trading for their users.
- This service has been added to their mobile app letting their users place purchasing orders in real time and at no cost in over 300 US-listed stocks on the NYSE and NASDAQ.
- Business Model: Users are charged a 0.01 percent annual custody fee. Beyond 100 trades, each transaction is charged £1. A limit has been placed on orders of $1,000 worth of shares but customers may place 2 orders for the same shares of $1,000 each.
- Specifics: One outstanding feature with this offer is that it enables customers to buy and sell fractional shares, which could be of interest for small shareholders.
- For now, this service has only been made available to Metal customers. Standard and Premium cardholders are expected to be addressed soon. Standard account holders will be limited to 3 free trades per month, and Premium users to 8 transactions. Beyond this limit, they will pay $1 per transaction.
- A natural evolution. A year ago, Revolut presented a fee-free trading service and is now making it operational. They claim they intend to apply a similar approach to stock investment as the model they selected in dealing with for currency and crypto-asset purchases, implementing a simple, frictionless customer process.
- Reaching out for more users with share-trading. Share-trading is typically considered complex and expensive to get involved with. With their new option, this British FinTech with 6 million customers wants to increase the popularity of share-trading, typically inaccessible to many people.
- Just two months ago, Revolut introduced Group Vaults, enabling several users to save money to a single account. Their trading service is also meant to expand their set of offers.
- Revolut challenges Robinhood, a Californian start-up allowing their customers to invest in shares and crypto-assets at no cost. Just days ago, this FinTech announced a $323 million funding series.