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 -

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Seems like an amazing oversight considering how delayed the product was

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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

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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.

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

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Just spotted this -

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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.

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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

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

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Slightly off-topic from the broker side of things. Revolut is officially a bank in Lithuania.

This means the full banking rollout should start happening across Europe. A few other UK neo banks have prioritised getting their licence, whereas Revolut was more focused on international expansion. We’ll see what changes this brings to their service and stockbroker offering!

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Opening banking integration (getting your other accounts to show inside Revolut) is now in Ireland as well and not just the UK.

Be interesting to see if this extends to broker accounts or if they make use of the open banking new regulation to help the trading side. A great way to top up your brokerage account and see all your wealth in one place!

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The UK and EU neobanks are expanding, Revolut is rolling out more features in the US, including a partnership to enable crypto trading.

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While the trading aspects of Revolut here in the UK have gotten a bit quiet, the business is still full steam ahead.

Given the valuation has remained the same and they consider it an extensions to the series D, it’s likely the VC wanted to be part of the original raise but had extra conditions or delays on their side.

I’ll be interesting to see where this money ends up given the expansion into the US and Monzo heating up their own US ambitions. Fingers crossed we’ll see some enhancements and growth to the trading platform.

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