Revolut eyes Robinhood in battle over commission-free trading in the US

Rick Steves

Revolut already offers commission-free stock trading on its mobile app to users in the United Kingdom and Europe. 

Revolut

Revolut, the UK-based digital banking app, has launched commission-free stock trading in the United States in a major milestone for the firm which will now compete with leading online brokerage such as Robinhood Markets Inc and Charles Schwab Corp, which has recently acquired E*TRADE.

The so-called “superapp” had to keep making moves within the multi asset space in order to consolidate its position as a market leader. Having launched as a payments services provider, the firm added cryptocurrency trading and savings accounts. Now, it is time for stock trading to address growing demand.

Revolut goes PFOF as it competes with Robinhood

Retail trading has surged particularly since the pandemic and the ‘meme stocks’ phenomenon, with social trading and gamification of trading having an impact on the behavior of the younger generations.

This has led US retail traders to trade approximately $281 billion worth of stocks in 2021 alone. An astonishing figure when compared to $38 billion in 2019.

Revolut has gone the PFOF way, relying on payment for order flow to earn revenue, while traders get access to trading with zero commission. This practice has led to much controversy in the wake of the Gamestop short squeeze as Robinhood, another player using the PFOF model, restricted trades during extreme volatility. Robinhood was accused of conflict of interest.

The SEC reviewed the matter and found no fault, according to a recent report from the regulatory authority. Citadel Securities, Robinhood’s partner, and also a defendant in the short squeeze lawsuit quoted the SEC report in order to dismiss the case. The lawsuit is going in favor of the defendants.

“This to us was just the next logical step”, said Gabe Vallejo, Head of Wealth and Trading at Revolut US, who said the firm is not concerned about an ongoing SEC review of PFOF and a potential ban on the practice. “We’re confident we can continue to offer this product to our customers in the most efficient manner possible”.

The US operation of Revolut offers access to zero commission trading on both full and fractional shares and of more than 1,100 securities and ETFs listed on the New York Stock Exchange and Nasdaq. The fintech secured a U.S. broker-dealer license in September 2021.

Revolut already offers commission-free stock trading on its mobile app to users in the United Kingdom and Europe.

 

Read this next

blockdag

BlockDAG Excels With $2.2M In Miner Sales And Moonshot Teaser, Overshadowing Litecoin’s Rally And Dogwifhat’s Market Highs

Explore how BlockDAG’s $2 million Miner Sales & Moonshot Teaser eclipse the Litecoin price recovery and the Dogwifhat all-time high.

blockdag

BlockDAG Leads Top 6 Cryptocurrencies to Buy in 2024 with a Potential Price Surge to $10 Leaving Cosmos, BNB, and Ethereum Behind

Discover the top six cryptocurrencies in 2024, including BDAG’s remarkable growth potential, BNB’s durability, Cosmos’ connectivity, and ETH’s eco-friendly advances.

Retail FX

Weekly Roundup: Prop firm arbitrarily accounts, Interactive Brokers’ CFDs in Japan

FX, Fintech and cryptocurrency markets have been bustling with activity over the past week, as is often the case. Keep yourself informed and ahead of the curve with a curated selection of crucial stories and developments that are most relevant to those engaged in the markets.

blockdag

BlockDAG Redefines Crypto Mining as Presale Tops $18.5M, Outshining Ethereum ETF & Dogecoin Dynamics

The recent approval of the first Ethereum ETF in Hong Kong underscores a significant advancement in the cryptocurrency’s mainstream acceptance. While Ethereum continues to attract institutional attention, the Dogecoin price prediction suggests a possible resurgence, despite its current undervaluation from past highs.

Digital Assets

Bitcoin halving is done: ViaBTC mines historic block 840K

The Bitcoin network has confirmed its fourth-ever halving block, mined by the cryptocurrency pool ViaBTC, according to data from Blockchain.com. This significant event in the Bitcoin ecosystem reduced the mining reward by half, a deflationary measure occurring approximately every four years to control the issuance of new bitcoins and curb inflation.

Retail FX

True Forex Funds now offers Match-Trader and cTrader platforms

Proprietary trading firm True Forex Funds today announced the launch of Match-Trader, a multi-asset trading platform developed by California-based FX technology provider Match-Trade Technologies.

Retail FX

CySEC hits FXORO parent with €360,000 fine

The Cyprus Securities and Exchange Commission (CySEC) has fined MCA Intelifunds, trading as FXORO, a total of €360,000 for multiple violations of the Cypriot investment laws.  

Digital Assets

Binance’s CZ in good mood ahead of sentencing, says partner

Yi He, co-founder of cryptocurrency giant Binance, has shared a positive outlook on the legal situation of the exchange’s former CEO, Changpeng Zhao. Zhao is currently awaiting a sentencing hearing scheduled for April 30 in the United States.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: USD, FED, Middle East Tensions April 17 ,2024

The Federal Reserve walks a delicate line, addressing high inflation through a hawkish stance while avoiding stifling economic growth.

<