Revolut targeting millennials by facilitating stock trading on app
Revolut launched something new and attractive on its mobile app. The European customers may now trade stock for free, without paying any commission. About 300 stocks listed on the NYSE and Nasdaq are being offered for trading. This means investing in US giants like Tesla and Amazon is very much possible through the Revolut app.
The company first teased the trading platform in August 2018 and it was an indication to bring some change in the shares investment segment.
Revolut chief executive and founder Nik Storonsky said stock market investing has been long closed for ordinary people and this has resulted in real problems while people are seeking effective ways to get the most returns on their savings.
The new feature will initially be made available to the company's metal card customers and thereafter to all the EU-based customers. US stocks have been added based on the feedback received from customers. It is learned that US stocks are most in-demand.
However, the new offer comes with some limitations. Metal Customers can only make up to 100 trades commission-free in a month. Premium customers can make eight and Standard customers three trades for free each month. Customers need to pay 1 pound a week beyond the cap as well as a yearly custody fee of just 0.01 percent. Most EU stockbrokers charge fees between 6 pounds and 12 pounds per trade.
The company said the US regulators may charge a trading fee and they are amid a deal process with DriveWealth LLC.
It is being questioned why it is stepping into the stock trading segment. In the past couple of years, a surge in investment apps has been witnessed and people are trying to put their savings or earnings in the stock market. Some new potential customers are now being tapped with the feature of investment through mobile apps.