Revolut, a digital bank that includes cryptocurrency exchange services, has announced today that they will offer fee-free trading of shares in the United Kingdom. The trade options would be available through their web portal and also through their mobile app to all users. This according to an article first published by Reuters.
Revolut is a digital-only bank based in London, most popular in Europe, that offers a suite of services under its brand: money transfers, personal lending, cryptocurrency exchanging, and personal and travel insurance. Revolut principal trait is the low or almost non-existent fees collected for all of its services. With this move, Revolut plans to reorganize the stock trading market and gain a spot between the principal stock exchanges in UK.
Other stock brokerages collect hefty fees on every transaction. Revolut business model will allow customers to purchase and sell stocks directly from their web app, without paying any fees and in just seconds. Revolut’s CEO, Nikolay Storonsky, stated that:
“WE ARE GOING TO CAUSE THE SAME DISRUPTION IN INVESTMENTS AS WE HAVE DONE IN BANKING.”
Their new model of business lets them offer free trading to existing users, profiting from premium subscription to most advances users offering them more features. With more than 3 million users on their platform, they expect a massive adoption of this new tool, targeting traditional exchange brokerages like Hargreaves Landsdown and Barclays.
As innovative it can be, this business model is not new; an exchange called Robinhood has also been offering fee-free cryptocurrency trading since January and has done quite well. Nonetheless, Revolut can be the first one to integrate all mentioned services under one single app, a thing that surely will attract more users. It was not mentioned specifically when they would start offering these services but said that the development of the platform almost finished, and that we will be enjoying this new trading options soon.