Revolut is to launch a new CFD trading platform. Here’s what you need to know. Revolut, one of the world’s largest neobanks, is to launch a regulated, leveraged CFD or Contracts for Difference trading platform across Europe, under a new brand called Revolut Invest.
The new platform was showcased in a tweet made by Max Karpis, a well-known European tech investor who is also a long-term shareholder in Revolut itself.
Revolut Invest is a standalone CFD trading app, that Revolut is currently testing in several European states ahead of a wider rollout.
It’s designed to offer leveraged trading services and it will have a distinct branding and be separate from the main Revolut app.
Unlike Revolut’s recognizable black “R” logo, Revolut Invest’s branding features an orange/red colour scheme and a unique look, setting it apart from the main Revolut brand.
The app is currently being tested in select European markets, including Greece, Denmark, and Czechia. It’s available for download on the Apple App Store for iOS devices in these countries.
Revolut Invest includes Leveraged trading, and access to over 3,000 tradable assets, alongside an AI robot advisor.
Brokerage services for Revolut Invest will be provided by Revolut Securities Europe UAB, which is Revolut’s licensed subsidiary in Lithuania.
Revolut is partnering with another company to provide the new service. Earlier this year, Revolut signed an agreement with UK online broker CMC Markets.
Under this partnership, CMC Connect, CMC’s institutional services arm, will provide execution and clearing services for CFD trading to Revolut clients.
As of June 2024, Revolut has 45 million customers, holds $23 billion in client balances, operates in 38 countries and had generated revenues of $2.2 billion in 2023 and earned a net profit of $428 million. It is also the most downloaded finance app in Europe, ranking first in 17 countries.
Revolut also announced last week that it now had 10 million UK customers, many of which it had acquired as part of a two-year campaign, of aggressive growth.
Of course, Revolut was also recently granted a UK banking licence by the Prudential Regulation Authority or PRA, albeit with some restrictions.
Revolut sees the UK as its home market and is planning to set up its headquarters in London’s Canary Wharf
Revolut is run by its founder and CEO, Nikolay Storonsky.
Mr Storonsky was in the news recently, as he sold at least $200 million worth of Revolut stock, as part of a secondary share offering to institutions.
A deal which helped to value the company at $45.0 billion, or £34.0 billion. Buyers of that stock are to thought have included VC funds such as Coatue and D1 Capital Partners.
The share sale was billed as a way for staff and long-term holders of Revolut stock, to monetize some of their holdings, whilst providing liquidity in the privately held company, to VC funds and other investors.
Around $500 million worth of Revolut stock was offered for sale in the transaction, this type of corporate action could be seen as a precursor to an IPO proper.
This launch represents the next stage of Revolut’s evolution, expanding its services into regulated, leveraged CFD trading and it demonstrates Revolut’s ambition to diversify its offerings and compete in the broader financial services market beyond its neobank roots.
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