“Revolut partners with Freetrade to offer fee free trading …”
“Revolut partners with Freetrade to offer fee free trading …”
Nope, let Monzo do that, their philosophy is so much more similar to Freetrade than Revolut’s. After all, their CEO is on the waiting list
I couldn’t find tongue-in-cheek emoji
Hi Adam. I’ve heard them tout Revolut Wealth, certainly in the latest Rev Rally I watched live on Facebook, but the Revolut Stocktrading part is breaking news to me and appears to be for many others… if it was common knowledge then why wouldn’t it have been mentioned in the Investor Deck as a viable EU competitor?
Did Tom pay with cash or Monzo options?
When I signed up for Freetrade, it was free back in the days of 2017
You mean this slide @Diversify ?
It illustrates the new generation vs stodgy incumbents.
No, four competitors in the UK is not an exhaustive list. Didn’t include:
I meant as in anywhere in the Deck. If Stash and US comparables were going to be mentioned, I would have thought Revolut potentially entering the space would have been worthy of grabbing a line or two. I would argue Revolut is very different prospect from those left out in terms of competition.
For instance, this case study on De Giro was good because it’s a direct EU fast growing competitor.
On the same logic, if it true that Revolut intend to offer zero commission stock trading, this is materially significant info that would be worthy of mention in a 50+page Deck because it overlaps with exactly what Freetrade wants to offer.
Yes and also yes
I did include Revolut in the valuation section as a comparable UK company as there aren’t any other challenger stockbrokers to benchmark against. I included Monzo, too.
Would love to hear some speculation on what their effort could entail. I’m hoping Revolut Free Trading remains perennially “coming soon” like Revolut Wealth. I’m a conflicted R3 shareholder now after all
Would love to hear some speculation on what their effort could entail
Think you’ve already cut to the core of it above:
I’ve referred elsewhere to robo-advisors being a ‘software layer’ above existing infrastructure, and all of the public evidence points to Revolut doing the same here in terms of offering the services of an existing stockbroker (and/or ETF manager) through a shinier app.
Granted, Revolut are a software layer on steroids compared to robo-advisors and if they can give these services away for ‘free’ (although let’s not kid ourselves that it won’t be Premium only for the foreseeable) and with individual stocks it will be interesting to see.
They don’t seem to want or need any of this for the same reasons they’re content with being a prepaid card whereas Monzo has a full banking licence (Lithuanian stockbroker licence coming soon to an app near you ). They’ll be outsourcing the regulatory minimums to existing, old-world firms like the robo-advisors do and just like they do with their overdraft (LendingWorks), insurance (standard intermediation / broking), pensions (PensionBee) and current account technology (powered by the MasterCard issuer Prepay).
This makes their approach fundamentally different to Freetrade.
Question - when does this model simply become an opaque marketplace without any choice over what vendor the user is contracting with? Just because they can keep it ‘free’ should not excuse them from being clear about this, and they’re already on thin ice in terms of passing these services off as ‘by Revolut’, potentially disingenuously. If I have a complaint about any of these services, who should I count on to resolve it?
The instinct to take shots at Revolut for moving into more direct competition with Freetrade is a little silly. They are just another startup, doing very well, and their strategy to expand so rapidly into new products clearly works for them.
It’s doesn’t make a lot of sense to feel threatened by their stock trading offering. As a dedicated platform, Freetrade is very likely to perform that function better, offering a better customer experience, and more useful education. At that point Revolut is just a tool to get a huge number of people interested in the concept of stock trading.
I like Revolut, I use it as my day-to-day account. I have premium, I use the overseas insurance, I use the multi-currency accounts, and the opportunity to lock in a good exchange rate, disposable cards are useful, so is global delivery… Basically I like the features related to the core function of Revolut - travel and international payments. I played with buying crypto there, but I’ll stick to Kraken/Coinbase. I played with Vaults, but I’m very likely to stick to Moneybox for saving. I will play with stock trading on Revolut, but almost certainly I will be focused on using Freetrade.
And that’s fine, for everyone. Revolut will use their feature creep to get the low-hanging fruit as always. Freetrade, like the other more specialised products, will attract the people with a specific interest in what they provide. The ‘us vs them’ mentality is silly.
Great post. Just to respond to the question, I’m a satisfied user of Revolut and can confidently say that their ‘marketplace’ is transparent. The “offers” they provide always provide clear & simple T&Cs in my experience - particularly signing up to Pensionbee & using their crypto exposure service. It’s the customer’s responsibility to know and agree to what they’re signing up for and to raise any complaints in line with the terms of service.
I reckon this will launch as a Premium service for sure, but with ways to unlock it for standards users. This is what they did when they launched crypto: standard users had to make 3 successful referrals which I was happy to do.
I’d be interested to know who they may partner up with to provide zero commission trading and whether it will be real or synthetic.
@dan I agree with your post too Interesting prospect you mention with Revolut is they can leverage their large installed user base to use their product upon launch.
I’ve said as much here. The more public attention drawn to cheap / free investing the better.
As for shots against Revolut, many people come here, amongst other things, to find out about the nuts and bolts of building a stockbroker.
A core part of our narrative is identifying, explaining and educating on why incumbent stockbrokers are not doing as well as they could for their customers, and especially millennials. If I can find synergies in this with the approach of other fintechs (as I have ad nauseam on robo-advisors), I think it is worth pointing out.
Thanks - good to know. Not an active user myself, but that may change when they offer crypto as cashback on card purchases (rumoured feature).
And also connect into the likes of Xero and Sage to do the backend accounting…
For sure, you’ve presented the kind of rational evaluation I would expect from someone engaged in building a stock trading product. Your linked comment was a good read, also.
My comment was more aimed at the tribalism that occurs in any comment chain where Revolut are invoked in the name of ‘competition’. It’s not helpful - there’s much that can be learned from other products, and certainly no reason why we can’t make use of both.
As @adam said, we had showed a sample of the market, but Revolut had not announced their plans at that point. And it’s not really good form to sort of leak someone’s plans (EDIT: especially if not confirmed), while they surely prepared a baller accouncement for what would be the right time for them (and they just did it in Amsterdam now ).
Nevertheless, we tend to be extremely transparent, so Adam was very clear in his Forbes interview in terms of where we’d expect more meaningful competition from: