The British private financial technology company, Revolut, has launched a commission-free stock trading service, as a way to differentiate itself from rival banking start-ups such as Monzo and Starling Bank and to “democratize” access to investing.
The service will be available from Thursday, to customers who pay for the GBP 12.99 monthly “metal” subscription service, while the users who use the cheaper premium or the free accounts will have access to it within the next few weeks.
Revolut, which was valued at USD 1,7 Billion in a fundraising last year, is about to become the first European company allowing investors to buy fractions of shares and the app will have no minimum investment size. Revolut ‘s free users will receive three free trades a month and pay GBP 1 per trade for further transactions. Premium subscribers, who pay GBP 6.99 per month, will get eight free trades, while metal subscribers will get 100.
Launching this new service is also a way for Revolut to challenge major trading platforms such as Hargreaves Lansdown which charges up to GBP 11.95 per order, falling to GBP 5.95 for the most frequent traders.
Despite the company’s ambitious goals, the fact that it will initially only offer US stocks, with a trade executed through a partnership with US clearing firm DriveWealth, makes the investments not able to be held within tax wrappers such as stocks and shares Isa or a self-invested personal pension.