Revolut has received a UK trading license from the Financial Conduct Authority (FCA), allowing it to trade in UK and European stocks and exchange-traded funds (ETFs) from 2025.
The move will expand the London-based fintech company’s services. The company has previously focused on US-listed stocks available through its app since 2019.
Revolut is one of Europe’s most valuable fintech companies with a market capitalization of $4.5 billion and is looking to expand its services to 2.12 million UK trading customers. The company plans to update its app to support new services and compete with established players in the UK trading market, such as Hargreaves Lansdown, AJ Bell, Trading 1, and others. free trade.
The license follows Revolut’s approval of a banking license in the UK in July after a three-year waiting period, ending regulatory uncertainty that had constrained the company’s ambitions in the region. Resolved.
Despite its growing portfolio, Revolut has not indicated any intention to offer contracts for difference (CFDs) in the UK or EU. Although CFDs are banned in the US due to their high risk, they remain a controversial financial product, and Revolut appears to be focused on trading stocks and ETFs.
Revolut is also expanding its purpose-built cryptocurrency trading app, Revolut X, to users across the European Union.
Originally launched in the UK in May for professional crypto traders, RevolutX offers more advanced features compared to the standard buy and sell options in the original Revolut app.
Revolut X competes directly with major cryptocurrency exchanges by offering fixed trading fees of 0% for makers and 0.09% for takers, regardless of trading volume. This pricing strategy could offer a more cost-effective option for cryptocurrency traders.
The independent platform currently allows users in 30 European countries to trade over 200 types of tokens. The London-based digital bank, which has over 400,000 customers worldwide, aims to become the go-to platform for cryptocurrency transactions.
Revolut is reportedly developing its own stablecoin. New entrants are currently entering the stablecoin market, led by Tether’s USDT, which has a market capitalization of approximately $12.5 billion. Circle’s USDC market capitalization is approximately one-third that of Tether, ranking it second.
PayPal entered the stablecoin space this year, blockchain company Ripple is expected to follow suit soon, and BitGo’s upcoming launch was announced at Singapore’s Token2049.
What potential advantages or disadvantages does Revolut face by choosing not to offer CFDs in the UK, and how might this influence its overall growth strategy?
As a website editor, I would like to conduct an interview about the recent developments of Revolut, a London-based fintech company, and its UK trading license acquisition from the Financial Conduct Authority. We have two esteemed guests joining us today, Dan, an analyst at a leading finance firm, and Emily, a financial writer, to discuss the impact of Revolut’s expansion and its plans for the future.
Emily, can you tell us how significant is this news for Revolut and the UK trading market? What challenges does Revolut face in competing with established players like Hargreaves Lansdown, AJ Bell, and Trading 1?
Dan, as an analyst, what do you think about Revolut’s decision not to offer CFDs in the UK or EU? Do you think this approach might hinder their growth? Additionally, how do you see Revolut’s cryptocurrency trading app, Revolut X, impacting the existing market?
Moving on to the cryptocurrency aspect, Revolut is notably expanding its presence in this space. Emily, what do you think about Revolut’s decision to compete directly with major cryptocurrency exchanges? How does their pricing strategy compare to others in the market? Dan, as someone with expertise in the finance industry, how do you foresee Revolut’s expansion into cryptocurrency trading affecting conventional markets?
Dan, with various companies like PayPal and BitGo entering the stablecoin market, do you think there is still room for Revolut to make a significant impact? What unique features or strategies could Revolut implement to stand out in this increasingly crowded space?
Thank you, Emily and Dan, for your insights.
