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Revolut, the financial services firm, has just launched a new digital service that will allow its customers trade U.S. stock from the New York Stock Exchange and Nasdaq. The service will be free and available to all customers.
Revolut, the London based fintech startup with digital banking services has announced the launch of a new app for investors to engage in stock trading, allowing for the buying and selling of shares, completely free of charge. The new app will only be available for Revolut’s metal card customers at this initial stage and will eventually reach all of its six million customers in a roll-out process that will last for the next few weeks.
Users of the new app will have the opportunity to partake in up to 300 stocks currently listed on the New York Stock Exchange as well as the Nasdaq Stock Market. All users who trade less than a hundred times each month are allowed to trade without paying any fees, apart from the firm’s traditional monthly subscription. However, for more than 100 trades, a £1 charge and custody fee of 0.01% are applicable.
Furthermore, Revolut Premium customers who currently pay £13 a month will be allowed up to 8 free trades each month with standard users who pay £7, allowed three free trades.
The company hopes to present its large number of customers will the ability to trade stocks from the U.S. Revolut is looking to use this as a way to encourage many people who would normally not be very interested in purchasing stock.
The app will also allow people to buy even a small fraction of the shares, as little as $1, so interested millennials wouldn’t have to worry about having a fat bank account before they can be a part of the investment. With this move, the company now prides itself as the first company to bring to Europe, the possibility of buying fractional shares from U.S. markets.
Revolut Founder & CEO, Nik Storonsky, has explained that the new platform hopes to drive financial inclusion and inspire people to start making specific decisions about financial stability. According to him:
“This is another huge step in our mission to make financial services more inclusive, innovative and affordable. Investing in the stock market has been closed off to ordinary people for far too long, which has led to real problems for people as they search for effective ways to make the most out of their savings.”
Head of Wealth and Trading Product, Andre Mohamed, has also corroborated this however adding that a move like this was necessary to encourage an investment culture in young adults:
“It’s about including people that have previously been excluded from developing their personal wealth. This [platform] gives them another way to accumulate their personal wealth starting from a younger age in a way that is easy and low cost.”
Revolut has plans for the near future which involve adding U.K. and European stocks and Exchange Traded Funds (ETFs) as well. Revolut has successfully raised up to $340 million and is currently valued at $1.7 billion.