Revolut launches US stock trading

One step closer to Revolut's "superapp"

January 20, 2022
Revolut launches US stock trading
CompareBanks is reader-supported. When you click through some links on our site, we may earn an affiliate commission. Learn more

British-based banking app Revolut has gone live to US customers with its stock trading service, allowing users to trade without commission on the US stock market.

The feature has already been available to UK and Europe users and has now made it to its US-based customers.

The launch comes as trading has exploded in popularity among the everyday user, a surge that can be partially attributed to the ‘meme stocks’ of 2021 where Reddit and other online communities drove huge investment in companies such as GameStop and AMD cinemas.

Try Juni

The quest for super

Revolut has said that the addition of stock trading to its app is part of a push to create a financial “superapp”, where customers can not only manage their day-to-day banking but also savings accounts, payment services and cryptocurrency trading.

The app is already widely used in the UK and is the second-most valuable fintech in the country behind Checkout.com. In its investment rounds in July the company was valued at around £24 billion ($33 billion). This came after it launched the banking app in the US in March 2020. It achieved its broker-dealer licence in September 2021, which is what enables it to offer stock trading.

Controversial trading system

With the stock trading function, Revolut will now be a direct competitor to some of the larger online brokerages stateside, including Robinhood Markets Inc and Charles Schwab Corp. Robinhood also offers zero-commission trading through the same method, known as payment for order flow (PFOF).

This allows platforms like Revolut to charge customers zero commission as they earn a fee by routing trades to market makers. It’s as controversial practice as it could be seen that brokers are encouraging investors to pour in more money than they could potentially afford, or than would be in their best interest, so that the brokers can secure more PFOF. The Securities and Exchange Commission in the US is already reviewing it, and deciding whether it needs to be reformed or perhaps even banned.

Revolut has said that they aren’t concerned by the review, as they will be able to evolve the platform if needed to adapt to any new rulings.

Andrew Cook
Andrew Cook
Hi, I'm Andrew and I am a news writer for CompareBanks. My main focus is on digital and online banks and looking at the banking landscape is changing within the UK and around the world.

Related Articles

Starling Announces England Football Partnership
Starling Announces England Football Partnership
Starling Bank has this week announced details of its partnership with the England...
May 23, 2022
1 in 3 frozen accounts not fraudulent
1 in 3 frozen accounts not fraudulent
Data from the Financial Ombudsman has shown that 1 in 3 accounts that have been...
May 7, 2022
Boost For Lloyds Following Q1 Results
Boost For Lloyds Following Q1 Results
Lloyds Banking Group has released its figures for the first financial quarter, showing...
April 29, 2022
Starling The Best Business Bank, New Survey Reveals
Starling The Best Business Bank, New Survey Reveals
A survey conducted by the customer insight consultancy firm BVA BDRC has revealed...
April 21, 2022

Mentioned Banks

Its name suggests that it’s revolutionary. It also makes it sound like a vodka brand. For frequent travellers and those with friends overseas, this may be the ideal bank. First...
Learn More

Comments

Leave a Comment