Revolut, the $33 billion fintech player, is rolling out commission-free stock trading in the U.S.

Revolut CEO Nikolay Storonsky speaks onstage on the TechCrunch Disrupt convention in San Francisco, California.

Kimberly White | Getty Photographs

Revolut, the worldwide fintech participant valued at $33 billion, will quickly supply commission-free inventory buying and selling to U.S. clients for the primary time, CNBC has discovered.

The beginning-up is ready to announce Tuesday that it secured a U.S. broker-dealer license, enabling it to compete with the likes of Robinhood and Square within the red-hot world of retail buying and selling, based on CEO and founder Nik Storonsky.

Revolut has grown to develop into one of many dominant European shopper fintech corporations since its 2015 founding by regularly piling on new options. The app began out as a method for folks to keep away from forex dialog charges whereas touring, however rapidly added banking, buying and selling and crypto options amongst dozens of merchandise. It now has greater than 16 million clients.

That method helped it garner a large $33 billion valuation in July from traders together with Softbank and Tiger World, corporations that see London-based Revolut as a contender to create the primary world monetary super-app. However to get there, it must crack the U.S. market, the place opponents from Robinhood to Chime have already staked out corners of the fintech ecosystem.

“We’re constructing a single app the place folks can handle all points of their funds, from banking and international change, to cryptocurrency and inventory buying and selling,” Storonsky mentioned. “We’re keen to interrupt down frequent limitations to entry round inventory buying and selling comparable to account minimums and sophisticated interfaces.”

Revolut launched within the U.S. final 12 months simply because the pandemic started, and has since added excessive curiosity financial savings, small enterprise banking, U.S.-Mexico remittances and cryptocurrency buying and selling.

Revolut’s buying and selling function lets customers purchase or promote in style U.S. shares together with Apple, Tesla and Past Meat.


Retail inventory buying and selling could give it the broadest enchantment but, nonetheless: Greater than 20 million new traders have entered the fray since final 12 months, based on JMP Securities. Amid the buying and selling growth, which has benefited disruptors and legacy gamers alike, others need to leap in: PayPal is working by itself stock-trading platform, CNBC reported final month.

Revolut is at the moment testing its inventory buying and selling service, which can permit customers to purchase ETFs and shares of NYSE and NASDAQ listed firms, based on Ron Oliveira, head of Revolut’s U.S. enterprise. It will likely be out there in a number of months and can finally permit for fractional share purchases and investing spare change from card transactions.

The broker-dealer license took 16 months to amass by the Monetary Trade Regulatory Authority, Oliveira mentioned. Particularly, Revolut is permitted to be an “introducing broker” and can lean on New Jersey-based fintech DriveWealth to clear the trades, simply because it does for Revolut’s European buying and selling enterprise, he mentioned.

FINRA “took a deep dive, they requested numerous questions as a result of they wished to see precisely what the buyer expertise was,” Oliveira mentioned. “It took them a time frame to get snug, however we’re very pleased they received there.”

Cost for order movement

Whereas a Revolut government said in 2019 that its European operations would not lean on cost for order movement, an trade observe the place market makers pay brokerages for shopper orders, the U.S. enterprise is shaping as much as have a unique method.

Revolut will earn cost for order movement income within the U.S., based on a spokeswoman. The tactic is without doubt one of the primary methods Robinhood earns income, and it is a observe beneath scrutiny by Securities and Trade Fee Chair Gary Gensler.

Revolut can be working with regulators on its U.S. financial institution constitution utility in California, first reported by CNBC final 12 months, mentioned Oliveira. That course of is not more likely to be accomplished this 12 months, he mentioned.

The corporate will finally purpose for a public itemizing within the U.Okay., U.S. or maybe a twin itemizing, mentioned Storonsky. After elevating $800 million in July, Revolut needs to be finished elevating cash from non-public traders, he mentioned.

“That will likely be my hope, as a result of the truth is we’re producing free money movement,” the founder mentioned. “We should not want any further capital from exterior traders.”

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