Revolut Adds Stock Trading as It Builds Out Its Finance Services
(Bloomberg) -- Revolut is expanding into stock trading, allowing its customers to buy and sell U.S. equities.
Clients of the finance startup will be able to buy fractions of shares in $1 increments, the London-based company said in a statement. The trading business has been designed to be profitable in its own right rather than a loss leader, said Andre Mohamed, head of wealth and trading.
“This is the next stop on our road map to being a one-stop shop,'' said Mohamed. “There is huge opportunity here.”
Some users of Revolut's metal card will be the first to gain access on Thursday, with up to 100 free trades a month of about 300 stocks listed on the New York Stock Exchange and Nasdaq. The company plans to roll out the service in the coming weeks, with standard customers limited to three free trades per month, and it intends to expand into U.K. and European stocks as well as exchange-traded funds.
Revolut has expanded rapidly since former bankers Nikolay Storonsky and Vlad Yatsenko set it up in 2015. It branched out from its original pre-paid debit card aimed at international travelers, and has a banking license along with a valuation of $1.7 billion from last year's Series C fundraising. The firm also offers insurance products, personal loans and cryptocurrency trading.
DriveWealth LLC, a New Jersey-based broker, will execute trades on behalf of Revolut users and hold an inventory of shares for the fractional purchases.
“This is another huge step in our mission to make financial services more inclusive, innovative and affordable,” said Storonsky. “Investing in the stock market has been closed off to ordinary people for far too long.''
The company's grand ambitions have placed it in the glare of regulators. The U.K.'s financial watchdog has examined why the digital bank last summer temporarily turned off a system designed to block suspicious transactions. Revolut is also adding banking veterans to its board, according to several reports.
To contact the reporter on this story: Alastair Marsh in London at amarsh25@bloomberg.net
To contact the editors responsible for this story: James Hertling at jhertling@bloomberg.net, Marion Dakers
©2019 Bloomberg L.P.
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