Revolut has secured itself a US broker-dealer license and is now about to compete in the trading app market, according to CNBC.
This way the company will directly challenge US trading juggernauts Robinhood and eToro.
“Launching commission-free stock trading is the next logical step in our plans for the U.S. market. We are building a single app where people can manage all aspects of their finances, from banking and foreign exchange to cryptocurrency and stock trading,” Nik Storonsky, CEO and founder of Revolut, said.
Revolut is about to use DriveWealth to help bring its trading and investment platform to US customers.
“As a licensed broker-dealer in the U.S., we’re eager to break down common barriers to entry around stock trading such as account minimums and complex interfaces by enabling customers to invest commission-free through a user-friendly interface,” Storonsky added.
US CEO Ronald Oliveira told CNBC that prior to awarding the fintech its new licence, the Financial Industry Regulatory Authority (FINRA) “took a deep dive—they asked lots of questions because they wanted to see exactly what the consumer experience was. It took them a period of time to get comfortable, but we’re very happy they got there.”
Revolut is also working with regulators on its U.S. bank charter application in California, first reported by CNBC last year, said Oliveira. That process isn’t likely to be completed this year, he said.