Revolut Unveils Standalone Investment App: A Bold Challenge to Robinhood and eToro

Revolut Launches Standalone Investment App: A Game Changer for Casual Traders

Revolut, Europe's largest fintech company, has entered the competitive retail investment market with its new standalone app, Revolut Invest. The app aims to compete with established platforms like Robinhood and eToro, offering a wide range of assets for retail investors. With nearly 5,000 assets, including US and European stocks, ETFs, commodities, bonds, and contracts for difference (CFDs), the app provides users a comprehensive selection of investment options. Currently being piloted in Greece, Denmark, and the Czech Republic, Revolut Invest plans to expand across the European Economic Area (EEA) by the end of 2024.

Revolut's strategic move is part of its ambition to become a "super app" that offers an integrated platform for various financial services, including banking, trading, and payments. The app also offers a "Trading Pro" premium subscription for discounted commissions, higher order limits, and advanced analytics tools.

Key Takeaways

1. Vast Investment Options: Revolut Invest provides access to 5,000 assets at launch, including stocks, ETFs, bonds, commodities, and CFDs, giving it an edge over some competitors.

2. Competitive Pricing: With a flat fee structure of either 0.25% or €1 for equity and bond investments, Revolut Invest offers affordable trading options for retail investors. Premium subscribers can enjoy additional discounts on commissions.

3. Geographic Focus: Currently available in select European countries, Revolut Invest plans to expand to other EEA markets by year-end and is poised for global growth with regulatory approvals in key markets like the UK, US, Singapore, and Australia.

4. Target Audience: Revolut Invest primarily targets experienced retail investors while providing a user-friendly platform for beginners, making it a versatile option for different investor profiles.

Deep Analysis

Revolut’s new venture into the investment app space is part of its broader business strategy to become a comprehensive financial hub for users. By launching Revolut Invest, the company is not only targeting current banking customers but also attracting new users who may not have used its financial services before.

One of the app's primary selling points is its extensive range of assets, which includes options that are often not available on other popular platforms. For example, alongside stocks and ETFs, Revolut Invest allows users to trade bonds and CFDs, offering a more diversified portfolio. While platforms like Robinhood and eToro have built a strong following by focusing on commission-free trading, Revolut Invest stands out with its flat fee structure and premium features. The "Trading Pro" subscription offers advanced analytics tools and higher trading limits, appealing to more experienced investors.

However, the app's flat fee structure—though competitive—does differ from the commission-free models used by Robinhood and eToro. This might make it less attractive to some retail investors who are accustomed to commission-free trades on select assets.

A notable strength of Revolut Invest is its seamless integration with Revolut's other financial services. Users can manage their investments alongside banking, payments, and currency exchange within the same platform, providing a convenient one-stop solution for personal finance. However, unlike eToro, Revolut Invest does not yet offer social trading features, such as copy trading, which could be a drawback for users looking for community-driven investment strategies.

From a geographic standpoint, Revolut Invest’s European focus and future expansion plans signal its intent to grow beyond the US-centric models of competitors like Robinhood. By establishing a strong foothold in Europe and with plans for global growth, Revolut Invest has the potential to serve a diverse, international user base.

Did You Know?

• Regulatory Approvals: Revolut has secured key approvals in several global markets, including the UK, US, Singapore, and Australia, setting the stage for potential future launches outside Europe.

• Fractional Trading: Similar to Robinhood, Revolut Invest allows users to trade fractions of stocks, making high-priced shares accessible to users with smaller budgets. This feature is particularly popular among newer investors looking to enter the market without needing significant capital.

• Double Asset Growth: By the end of 2024, Revolut plans to double the number of available trading assets on Revolut Invest, which could further differentiate it from competitors.

In conclusion, Revolut Invest’s entry into the market marks a promising development in the fintech space, especially for casual and intermediate traders. While it may not yet offer the advanced tools that professional traders seek, its low-cost structure, vast asset offerings, and global expansion plans make it a solid competitor in the retail investment market. For users seeking a convenient platform that integrates banking and investing in one place, Revolut Invest is poised to become a go-to option.