Revolut Gets U.S. Stock Exchange Approval to Take on Robinhood

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UK digital bank Revolut has been licensed as a licensed broker in the US, allowing it to expand its commission-free equity trading platform overseas.

Operating as Revolut Securities, the $ 33 billion fintech company plans to offer access to stocks, cryptocurrencies and exchange-traded funds through its app with no minimum investment required.

Competition for commission-free stock trades is intensifying in the United States, as dominant players such as Robinhood take on newcomers from Europe such as Revolut and eToro. The sector is also under close scrutiny, after retail traders caused significant market volatility when stacking popular stocks like GameStop earlier this year.

“The initiation of commission-free equity trading is the next logical step in our plans for the US market,” Nik Storonsky, chief executive and co-founder of Revolut, said in a Sept. 21 statement.

READ Revolut plans to launch a credit card in 2021 with the aim of breaking into the US market

With that comes plans to offer a credit card to U.S. customers by the end of this year, U.S. fintech boss Ron Oliveira said. Financial news last month. Digital banking is aiming for a target of one million users in the United States by 2021, with plans for a major marketing blitz also on the cards.

Revolut became the UK’s most valuable private tech company earlier this year after raising $ 800 million in new capital from new investors SoftBank and Tiger Global. Oliveira said at the time that the funding would be used to fund its growth plans in the United States and to pursue banking licenses in the United Kingdom, Singapore and Australia.

Revolut’s stock trading platform in Europe has amassed around one million users of the product to date, he added.

The digital bank said on September 21 that it hoped to offer fractional share trading to its US users in the future. Its platform is offered in partnership with DriveWealth, which also supports its equity trading unit in the UK and Europe.

READ What you need to know about Order Flow payment and why Robinhood cares so much

A portion of Revolut’s revenue from the new feature will come from payment for the order flow, a spokesperson said CNBC who first reported the ad.

Paying for order flow is a controversial process that allows digital stock brokers to make a profit by selling trades to market makers. Gary Gensler, chairman of the US Securities and Exchange Commission, said a ban on the practice was “on the table.”

To contact the author of this story with comments or news, email Emily Nicolle

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