Revolut has launched a commission-free stock trading service across Europe.
How it works:Metal card customers will gradually get access to make up to 100 instant free trades in over 300 US listed stocks on the New York Stock Exchange and NASDAQ.
- While Metal account holders will get 100 free monthly trades, Revolut Premium and Standard accounts will get eight and three, respectively.
- Trades exceeding the monthly allowance will be charged £1 per trade, and an annual custody fee of 0.01%.
- All currency transactions will be made within Revolut’s multi-currency wallet and require US dollars, so anyone can transfer money from their home currency using Revolut’s exchange rates and automatic conversion process.
- Revolut has partnered with DriveWealth to handle brokerage and trading for the service.
Future plans: Revolut's slow rollout of stock trading will be followed by a general launch for all other customers in the coming weeks.
- Revolut intends to add more stocks to the service.
- The challenger bank also plans to provide access to UK and European stocks and ETFs.
"This is another huge step in our mission to make financial services more inclusive, innovative and affordable," said Nik Storonsky, founder and CEO of Revolut.
"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."
Convergence of banking and trading: Next generation financial services firms typically start with a niche core offering and then expand outwards to provide customers a broader offering. Banks are adding investment capabilities and investment platforms are rolling out banking products.
- Robo-adviser Betterment just launched a new high yield savings account, Everyday. The company plans to roll out a new checking account later this year.
- A variety of problems plagued the launch of Robinhood's savings product. The company is expected to relaunch a high yield cash account.