Digital bank Revolut to offer customers fee-free share trading
LONDON (Reuters) – British digital-only financial institution Revolut stated on Thursday it’s constructing a commission-free buying and selling platform on its app, its newest bid to make use of know-how to undercut conventional monetary providers.
Customers, who can already use the app to handle their cash and spend overseas with minimal charges, will be capable to spend money on shares from British and U.S. listed corporations in addition to exchange-traded funds and choices.
Revolut, which launched in 2015, stated it desires to interrupt down limitations to entry in investing, which embrace excessive prices, complicated interfaces and complex sign-up processes.
Nikolay Storonsky, founder and CEO of Revolut, stated with brokers charging as a lot as 5 kilos ($6.71) per commerce and providing clunky know-how, there was “huge” room for enchancment.
“To place it bluntly, we’re going to trigger the identical disruption in investments as we’ve achieved in banking.”
Revolut is one among various app-only banks and different monetary know-how corporations which have sprung up in Britain, aiming to take enterprise away from established suppliers with slick know-how that’s simple and low-cost to make use of.
It stated has now signed up two million clients throughout Europe, representing a 300 % enhance in person development over the past yr.
Whereas there are some fintech corporations targeted on commission-free buying and selling, resembling Robinhood in the USA, Revolut would be the first digital financial institution to combine an funding platform into its app alongside on a regular basis banking providers.
Revolut stated customers will be capable to purchase and promote listed shares in seconds, with out paying fee.
A spokesman for the agency stated the product would generate earnings from premium subscriptions, which is able to give perks to paying clients, in addition to margin buying and selling, securities lending and curiosity on money held.
Reporting by Emma Rumney. Enhancing by Jane Merriman