FNG Exclusive… Should traditional CFDs brokers in Europe (and elsewhere) be concerned?

FNG has learned that neobank giant Revolut is planning the next stage of its evolution, which will see the company launch regulated, leveraged CFDs trading in Europe, via a new brand to be called Revolut Invest.

Revolut is testing what looks like a standalone CFDs investing app, called Revolut Invest, according to a tweet from fintech investor Max Karpis, an early Revolut investor. The Revolut Invest app is apparently already available for download on the Apple App Store for iOS devices, in select markets including Greece, Denmark and Czechia, where it will be tested with clients before a wider EU launch. The Revolut Invest app includes functionalities such as leveraged trading, 3000+ tradable assets, and an AI robot advisor.

Brokerage services for Revolut Invest will apparently be provided by Revolut Securities Europe UAB, the company’s licensed subsidiary in Lithuania.

Interestingly, instead of bearing Revolut’s recognizable black “R” logo, the Revolut Invest logo and brand is somewhat different than “regular” Revolut, appearing with its own color (orange/red) and look.

Earlier this year Revolut signed an agreement with UK online broker CMC Markets, to offer CFDs trading to Revolut clients with execution and clearing provided by CMC Connect, CMC’s institutional services arm.

London based Revolut is one of the world’s largest neobanks, boasting 45 million customers and $23 billion in client balances (as of June 2024), while operating in 38 countries. The company brought in Revenues of $2.2 billion in 2023, earning Net Profit of $428 million. Revolut is the most downloaded app in the Finance category in Europe, ranking first in 17 countries. Revolut is run by founder and CEO Nikolay Storonsky.