Revolut Trading

New review from Which?

They like the pricing & fractional shares but aren’t keen on the lack of ETFs & other funds, tax wrappers e.g. ISAs or trading more generally so a pretty reasonable review in my opinion.

The story also mentions tax on US dividends and completing a W-8BEN. Surprisingly you can’t do this in Revolut’s app at the moment but they’re planning to let you do that in the future.

In case you missed it, here’s Revolut’s blog post announcing their service -

2 Likes

Seems like an amazing oversight considering how delayed the product was

2 Likes

I think for Revolut the bigger game plan is to enter into U.S. After all Robinhood has 4M users there and it’s easier for Revolut to grab users’ mind share immediately

U.K is not a big market to gain economies of scale, especially when lots of users won’t be revenue generating users anyway

1 Like

I agree, it’s not entirely clear what’ll make Revolut stand out in the US besides better user experience and fx conversion / transfers (I don’t believe the latter will be that popular) so I think this’ll be an important part of their offering.

Having said that, it’s going to be hard for them to build a fully featured service & compete with the likes of Robinhood, if it’s buried in a menu tab.

I guess the question is - do they see this as just another product to bolt on to their offering and make a bit of money from or another arm of their business. If it’s the latter then I wouldn’t be surprised to see them move this to a standalone app at some point.

3 Likes

Also GST owns both Robinhood and Revolut… a merger one day??

2 Likes

Just spotted this -

1 Like

Revolut’s planning some very aggressive expansion over the couple of years, which will presumably make their trading service available to a lot more people too.

They’ve struggled to scale their customer support as they’ve grown in the past so this will put some pressure on them there, hopefully the lessons they’ve learned means they’ll avoid those problems this time.

2 Likes

The expansion into new markets will be subject to Revolut getting the necessary regulatory approvals.

I think this is the important bit. The saga of the European banking license, which they still aren’t using, has shown that announcements of intentions doesn’t mean it’s not a long way off

1 Like

So roughly as many customers as Freetrade has, although spread out over more countries of course -

1 Like