Revolut takes on Robinhood and eToro with stock trading platform for U.S. clients

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Digital bankSavings and investment

The digital bank challenger took 16 months to obtain his broker’s license from US regulators.

Image source: Ronald Oliveira / Revolut

With stock transactions still on the rise, Revolut is looking to profit from the investment boom in the United States.

The digital banking service has secured a broker’s license in the United States, according to CNBC– a decision that will put Revolut in a position to directly challenge the American commercial behemoths Robinhood and eToro.

“The initiation of commission-free equity trading is the next logical step in our plans for the US market. 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, ”said Nik Storonsky, CEO and Founder of Revolut.

“As a licensed broker in the United States, we look forward to removing common barriers to entry into equity trading, such as account minimums and complex interfaces, by allowing clients to invest commission-free. through a user-friendly interface. “

Using its new prize pool and its $ 33 billion price tag, Revolut obtained its brokerage license over a 16-month period.

US CEO Ronald Oliveira said CNBC that before granting fintech its new license, the financial sector regulator (FINRA) “did a thorough review – she asked a lot of questions because she wanted to see exactly what the experience of the financial industry was. consumer. It took them a while to get comfortable, but we’re very happy they got there.

Revolut will use its European trading partner DriveWealth, an American fintech that recently raised its own $ 450 million Series D, to help bring its trading and investing platform to U.S. clients.

As a first step, Revolut clients will be able to buy ETFs and stocks of companies listed on the NYSE and NASDAQ and, in the coming months, fintech will expand the offering, allowing users to purchase fractional shares. and invest their spare currency card transactions.

The decision to introduce the trade to its US customers will come as no surprise, given AltFi previously estimated that Revolut has around $ 1 billion worth of crypto on its balance sheet.

Here in the UK, Revolut’s stock trading platform has been overshadowed by its booming crypto trading.

Launched in 2018, Revolut has seen its trading offering attract clients across Europe, but has been hit by a series of high profile exits in its trading department, including the former head of wealth and trading at Revolut, André Mohamed, who left fintech in April 2020.

Just a few weeks ago, Revolut also increased its trading fees for the second time in six months, as the fintech restructured the way its trading commission fees are calculated.

Earlier this month, Revolut also announced that it will pay for its WeWork office space using crypto.

The digital banking service will pay for its new U.S. hub in Dallas using primarily Bitcoin, making it the first company to pay for its office using cryptocurrency.

UPDATE 22-09-2021 – This article has been updated to include a new quote from Nik Storonsky.

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