German tech firm Upvest is teaming up with Revolut to provide investors with fractional Exchange Traded Fund and stock trading opportunities across the EEA area. Revolut launched US stock trading in March of this year and is now pushing out into the ETF trading space. It also plans to offer EEA area stock trading in the near future.
Of special importance to Revolut is the ability to offer fractional shares, for those investors just starting out on their trading journey. Upvest will be working with Revolut to provide a white label brokerage, settlement and custody solution that can support fractional investing.
Fractional investing will be available on real securities rather than derivatives, which means that investors will still get the benefit of legal share ownership, dividend rights and corporate actions. This also resonates with ESMA’s recent public statements in support of the protection of retail customers in the fractional share trading environment.
- The plunge in German bond prices is not just an interest rate issue
- Inclusion of Indian bonds in JP Morgan index is major boost for foreign investment
- Cathie Wood makes her European move with Rize ETF acquisition
Upvest is able to make fractional share trading available thanks to its German-regulated brokerage and proprietary trading licenses. It says customers will be able to trade shares for as little as 1 Euro.
Both parties will be leveraging Revolut’s existing payment set up to ensure there is no friction in the user interface. This includes an API that lets Revolut access Upvest’s brokerage, settlement and custody services. The set up should help Revolut to rapidly expand its factional share trading offering across the EU, with both stocks and ETFs.
