Revolut launches ETFs trading across Europe

Revolut has launched Exchange Traded Funds (ETFs) for its trading offering via a partnership with German fintech Upvest.

The new update to its profitable wealth and trading business will allow its European customers to invest directly in c.150 fractional ETFs, whereby retail investors are the legal owners of the underlying shares and securities.

This means they are entitled to dividends and other shareholder voting rights.

Upvest provides the brokerage, settlement and custody infrastructure as well as regulatory permissions through its German licenses.

“Upvest is able to offer fractional trading with real securities by making use of its brokerage and proprietary trading licences, granted by the German financial authority. By allowing customers to invest as little as €1m, Revolut will be able to attract a wide range of investors who might not have otherwise considered investing,” Upvest said in a statement.

Trading is a core part of Revolut’s strategy to become both a global financial super app as well as a profitable business with sustainable revenues.

In its latest numbers, released in March 2023 but for 2021, the company demonstrated how it has grown earnings in a variety of business lines. Trading, however, which includes crypto, commodities and single stocks, was one of its best channels.

The UK-based company, which says it has 29 million customers globally, first launched US stocks trading four years ago back in 2019, through a partnership with Drivewealth.

Since then it has expanded into crypto trading as well taken its single stock platform to US customers as well.

“When looking at possible partners to offer access to ETFs and stocks listed in EEA markets to our European customers, Upvest was our preferred selected choice. They offered the infrastructure that enabled us to offer ETFs to our customers in a short time, just after our EEA trading entity operationalization was completed,” said Rolandas Juteika, Head of Wealth and Trading at Revolut.