Revolut Launches Robinhood-Style Stock Trading Service
A commission-free stock-trading service is now available from Revolut, a UK-based fintech firm.
The company describes its new platform as a Robinhood-style service that lets ordinary people buy and sell stock online. The Revolut service allows European investors to purchase shares of American stocks, from Microsoft to Beyond Meat, from their PCs or smartphones. The service was launched on August 1.
Unlike traditional brokerages, Revolut allows investors to purchase fractional shares. For example, a user might employ the platform to purchase $1 of Apple stock. Revolut says it is the first company to bring fractional investing in US stocks to European clients.
The company says its app is intended to bring wealth-building opportunities to people who have traditionally been excluded from investing.
“This is another huge step in our mission to make financial services more inclusive, innovative, and affordable,” says Revolut CEO Nik Storonsky. “Investing in the stock market has been closed off to ordinary people for far too long.”
Revolut makes user trades through US broker DriveWealth, which buys and sells stocks in the background. The company says it will eventually make money from the platform as investors become more active and opt for premium services.
Fractional trading is already available to Revolut members who pay £13 ($16) per month for membership at the company’s “metal” level. In weeks to come, the company will offer three trades per month to standard users and eight trades per month to premium users, who will pay £7 per month. Metal users will be limited to 100 free trades per month. Additional trades will be charged at £1 for all users.
Founded in 2015, London-based Revolut recently raised $340 million in funding to increase its valuation to $1.7 billion.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
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