Revolut launches commission-free stock trading

Potentially big news from Revolut: https://blog.revolut.com/trading-revolut/

…customers can make up to 100 commission-free trades per month in over 300 U.S. listed stocks on the New York Stock Exchange and NASDAQ with real-time prices and stock performance data. Any trades thereafter will be charged at £1 per trade. Trades with Revolut are instant, with a 0.01 percent annual custody fee and no account minimums.

Initial thoughts?

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$1000 limit per trade? funny. but it’s impressive how Revolut is growing. I really don’t understand why they only offer a mobile app. Is a wep app so hard to maintain?

Most people here don’t do stock picking, I guess won’t be very useful.

I assume they’re trying to compete with Robinhood?

From thenextweb.com:

And now, the company is launching a commission-free share trading platform, allowing anyone to invest in listed companies, without paying steep fees. Revolut also wants to let users purchase other instruments like ETFs (exchange traded funds) and options. Essentially, it’s trying to copy and paste the formula that made Robinhood a success in the United States, and bring it to its European heartland, where the lion’s share of its two million users are based.

I also read on a CNBC article that they plan “to add U.K. and European stocks, exchange-traded funds and stocks and shares ISAs over time.”

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But they can’t provide US ETFs to most of the European market, do they want to also cover EU listings (if so would be surprised if it’s commission free).

And can they offer individual stock? Does the European sh*t law only affect ETFs? How is VTI different from Apple?

Mind you the 100 free trades/month applies to Metal customers only…

Premium customers will be able to make eight free trades per month. Any trades thereafter will be charged at £1 per trade.

Standard customers will be able to make three free trades per month. Any trades thereafter will be charged at £1 per trade.

Both of these plans will be subject to the same 0.01 percent annual custody fee as applies to Metal customers.

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We currently offer trading to legal residents of the European Economic Area (EEA) and Gibraltar. The EEA includes: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
We are planning to launch in other countries around the world including the USA, Canada, Japan, Singapore, Australia, and New Zealand.

Source: https://www.revolut.com/help/exploring-revolut/trading/getting-started-with-trading/opening-a-trading-account

So no Switzerland, not even planned

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Also part-share purchases are possible - are these really shares they are selling or something similar what they did with BTC?

I guess the difference is that you clearly know what company you are buying when you buy a single stock. While when you buy a fund you have to trust the shady things that the managers might do with your money. Maybe the EU should add an exception for passive funds, since there is not much unclarity for the investor.

I don’t really believe that this regulation is made in the true interest of the investor. As GDPR is not in the interest of the consumer. They are all a series of protectionist bureaucratic measures taken by the EU.

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I‘m not really sure you could reliably say that for every possible passive fund.

What is (the definition of) a passive fund anyway? One that follows an index? How is that index constructed? For instance, do passive index funds tracking a volatility index (VIX ETFs) really leave only little unclarity for the investor?

Not truly free as still 0.01% annual fee, which is a bit hidden

Compared to IB low trading fees, not sure this works out any better?

To me it’s not hidden at all, it’s written in the 4th paragraph quite clearly. Besides 0.01% being neglectable really. Other factors count way more imv.

Like the question do they sell your order stream to HFTs, security, supported markets/instruments, support etc. Revolut is more of a toy in those regards compared to IB or similar

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This is not available in CH, right?

Hi @Kilbim, right not available in CH.

The headline is commission free, not commission free, but we charge you 0.01%/yr instead, so yes it is “a bit hidden” actually

Presuming you meant negligible, then you could say the same of IB commission, a useful comparison as IB is the broker of choice on here

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