The news: Revolut will roll out commission-free stock trades for its US customers over the next few months, now that regulators have approved its securities unit to serve as a licensed broker-dealer.
The UK-based neobank’s new product, which doesn’t require a minimum balance, will also include:
More on this: Like its established US peers, Revolut will make money on the offering via payment for order flow, which involves selling customers’ order data to market makers, CNBC reported. Its competitors will include free-trade giant Robinhood and brokerage arms of banks such as Chase and Bank of America.
Revolut Founder and CEO Nik Storonsky pointed out in the announcement that the company’s offering is “the next logical step in our plans” in the US. The neobank’s lineup, which Storonsky summarized, already includes:
Revolut’s free-trades product is its latest offering for US customers. It follows a July rollout of a remittances offering that people can use to transfer funds from the US to Mexico. The transfers come with dedicated fees, but don’t have FX charges as long as customers stay within free allowance limits.
The opportunity: While Revolut’s offering isn’t unique in the US, it could build loyalty among its existing users rather than driving its acquisition of new customers.
Deeper dive: To learn more about why Revolut faces a tough road ahead in the US digital brokerage space, read this article from our Fintech Briefing.