Revolut Trading 🦅

[Diversify (Radical Candor)]

Shoutout to the faithful in the comment section

[SimasZ]

It just sounds a lot like a comment I saw a while ago by someone saying that Revolut is just trying to be a jack of all trades but a master of none

[stelstyl]

Unfortunately this is not good news for Freetrade i am afraid. From day 1, they have free instant trades, EU rollout, franctional shares and already million of users on their platform.
I am sad to say that Freetrade is too slow to implement features. Even, the “Incentivised Free Shares” feature takes forever., They said the testing phase will take few weeks and it is still going on. Also, they always refer to the magical platform that will allow them to add thousand of stocks to the app, but we still didn’t see anything of this. On the other hand, Revolut gets things done very quickly,

[J4ipod94]

Please could you define quickly?

[szb (Sergey)]

We are all humans with our biases and limits.

A competitor launching their services and getting a first mover advantage in markets not yet served is the best productivity pill there is.

Especially in a down season such as August.

Better than any shout outs from investors owning less 0.1% of the business.

For me it’s good news as the product from the 2 companies is currently very different.

I am more worried about Robinhood getting in EU faster than Freetrade.

[Vlad (Vladislav Kozub)]

@stelstyl

On the other hand, Revolut gets things done very quickly,

https://www.reuters.com/article/us-fintech-revolut-trading/digital-bank-revolut-to-offer-customers-fee-free-share-trading-idUSKCN1J30D7

It took nearly 14 months since the announcement, I would not agree that this can be considered “quickly”. Bear in mind they did not start as a 3-man team but already had hundreds of developers and support staff in place, as well as all KYC/Support housekeeping being operational already.

[ryancormack]

There are still a few things here that aren’t as good as Freetrade that Revolut will be doing. Sure it’s some competition, but the offering isn’t as complete.

I guess it’s a race to see how quick Revolut can increase their offering vs how quick Freetrade can scale

• Users can also buy a fraction of a share, with the minimum amount being $1 worth of stock.
• The new feature is currently only available to users with Revolut’s metal card — who pay about £13 ($16) a month
• While Revolut’s service doesn’t charge commission, it will eventually apply pass-through fees where applicable and 0.01% custody fees as it rolls out to standard and premium customers. It plans to add U.K. and European stocks, exchange-traded funds and stocks and shares ISAs over time.

[szb (Sergey)]

To add to that they are operating using their partner’s API (DriveWealth) which is an easier thing to do than building their own platform. I guess European stocks arrival will take time.

[Dave (Dave Smith)]

@ryancormack

The new feature is currently only available to users with Revolut’s metal card — who pay about £13 ($16) a month

Will it ever be available to users who don’t pay a monthly fee? it’s not free otherwise. With Freetrade you can literally pay nothing if you only do basic trades in General Investment account

How many of their users have a Metal card?

[FisherBlack]

Rollout in a couple of weeks. This is like a public beta.

Difficult to say how many users have Metal. From info about the waiting list for metal: it was around 100K people one year ago. Now it may be 200-300K

[Bob]

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.

[Dave (Dave Smith)]

How much is premium? I assume only standard account is free?

If that’s the case three free trades on the free account isn’t really a threat

[saf]

12.99 a month from what I recall

The bigger takeaways are it’s available in Europe, fractional US shares, and low fx conversion cost. But Freetrade is addressing these things with their new platform.

[FisherBlack]

Premium is 6.99£. That is the metal tier.

[littlefinger (GT 😷)]

I agree with this, anyone trading/investing in US markets should consider FX conversions along with other charges. If they indeed provide low fx conversion charges then they would be cheaper overall.

Even though for the moment they are using DriveWealth, they would doit inhouse if it makes sense, it is not impossible.

My other takeaway is, at least FT got “Funding secured” on Crowdcube

[szb (Sergey)]

« Funding secured » nowadays means I am boasting about it on twitter and nothing is written in paper

[Lee]

Agree, key points @saf .

Can anyone link me to or comment on what Freetrade have explained about their fractional shares rollout with the US? I can’t find anything specific and from memory it was just UK stocks at first when it does become available?

[PoemofXtasy]

Funding secured for buy back at $420 I hope

[Diversify (Radical Candor)]

Fractions for all

[image] Fractional shares have been part of the Freetrade plan since the start. We want to open up investment in all companies’ stocks or ETFs, no matter how much money a customer wants to invest. What are fractional shares? They are essentially as they sound — that is, they are a fraction of a stock. For example, let’s say you have £25 to invest and one Unilever share costs £50. In that scenario right now, you wouldn’t be able to invest in Unilever shares on any platform. When …

[Justin (Big Boss)]

Y’all should read the comments in their reveal tweet. It ain’t a slick experience so far…

Revolut

ID verification isn’t instant (I’ve tried)…
W8BEN isn’t on the app…

Boring…