Revolut Trading

revolut trading
  • Access to over 800 stocks
  • Free trading within your monthly allowance
  • Trade in fractional shares, commodities, and crypto
  • Trade from as little as $1

Investing in stocks, bonds, gold, or crypto has been mainstream for quite a while now. Regular people like you and me started investing their hard-earned money through dedicated apps like eToro and Robinhood. 

Well, Revolut took notice and launched their own trading platform inside the app and offered folks stocks, commodities, and crypto. As we already have a review of the crypto platform, we’ll focus on stocks and a bit on commodities in this review. But first, here’s our short Revolut trading verdict:

Revolut is offering its users a solid investment opportunity, albeit a basic one. It’s suitable for beginners that don’t want to invest excessive sums of money, but they should also be careful as there are no learning tools and no demo accounts to play with. 

revolut trading

About Revolut

Founded by Nikolay Storonsky and Vlad Yatsenko, Revolut has made itself into a global fintech juggernaut. The company already has more than 15 million personal customers and 500k+ business users. And its launch in 2015 has taken the world by storm. 

The digital bank is now available in more than 35 countries, including the US, UK, EEA, Australia, Singapore, Japan, and coming soon to Brazil, Canada, UAE, and Hong Kong.

Revolut launched commission-free stock trading in New York Stock Exchange and NASDAQ in July 2019 to its Metal account customers, and soon everyone else could join in on the action.

>>> Read our Revolut Metal Account review

Pros and cons

Pros

  • More than 800 stocks to choose from
  • Easy to start trading
  • Fractional shares
  • Dividends
  • From commodities, only silver and gold available
  • Unlimited trades on Metal Account

Cons

  • Only a general investment account available
  • No managed portfolios
  • Only US stocks
  • No investment strategy advice or learning tools
  • No demo account

Fees

  • 1 free trade per month for Standard Plan
  • 3 free trades per month for Plus Plan 
  • 5 free trades per month for Premium Plan 
  • Unlimited free trades for Metal Plan

The amount of fees you’re going to pay if any, depends on which Revolut account you have. It ranges from only one free trade per month on the free Standard account to unlimited free trades on the Metal account that costs £12.99 or €13.00 per month. 

After you’ve exhausted your free trades, you’ll have to pay a commission per trade in your base currency. If you’re a high-frequency trader, you should invest in a Metal account to save up on the fees. 

The commission per trade in your base currency:

  • UK GBP 1.00
  • Eurozone EUR 1.00
  • Denmark DKK 9.00
  • Norway NOK 11.00
  • Poland PLN 4.00
  • Romania RON 5.00
  • Czech Republic CZK 28.00
  • Sweden SEK 11.00
  • Bulgaria BGN 2.00
  • Hungary HUF 368.00
  • Croatia HRK 8.00

Additional fees:

  • Currently, 0.12% annual Custody fee
  • Trading Activity fee at a rate of $0.000119 per share with a minimum charge of $0.01 and a maximum charge of $5.95 

To give you an example of the Custody fee. If you’re holding $10,000 worth of shares, you’ll have to pay an annual fee of $1.

The Trading Activity fee goes to the SEC for regulation purposes and is charged at the point of sale. You’ll get the net proceeds of the sale deposited into your account. $100 – $0.01 TAF = $99.99 in your account.

>>> 10 Biggest Digital Banks in 2021

Commodities fees:

  • 1.5% markup for Standard and Plus customers during weekdays (2.25% on the weekend)
  • 0.25% during market hours and 1% outside the market hours for Premium and Metal (out-of-hours markup between is 12 am Saturday to 12 am Monday UK time)

What is trading?

Trading is a short-term strategy where you seek to take advantage of even the slightest fluctuations in the market to make a profit. Stocks are, in this case, bought and sold in weeks, days, or even minutes. 

You could earn large sums of money in no time, but you could also lose it all as fast. It’s more of a full-time ordeal as you have to be constantly vigilant for changes in prices.

What is investing?

Investors typically look at the long-term prospect of a company and its stock. We’re looking at months or years of holding stocks and weathering through the short-term volatility. Think of it as buying a house and selling it ten years down the line. 

Investors usually have a diverse portfolio of stocks to mitigate the risk of losing money if one or more stocks don’t perform well over time. As in trading, there’s no guarantee that you’ll ever earn any money.

What can you trade? 

Stocks

There are more than 800 stocks from US-listed companies to choose from. This includes international companies listed in the US via American Depositary Receipts (e.g. Alibaba, Sony). Most famous brands like Apple, Nike, Netflix, PepsiCo, and many others are available.

Revolut plans to add the UK and European stocks, exchange-traded funds and stocks, and shares ISAs over time. Check out all available investment vehicles in the trading feature of the app, even without creating a trading account.

You can only fund your investment account by transferring funds from your Revolut account. This can only be done by funding it with USD. 

Commodities

Commodities include oil, gold, silver, copper, wheat, corn, and more. With Revolut, you can currently gain exposure to Gold (XAU) and Silver (XAG). Yes, exposure. As in, you aren’t actually buying real gold. It’s being kept in a single account in Revolut’s name, probably in a bank somewhere, if at all. 

When you buy gold or silver, you can put it in a Vault like you would do with your money. You can get cashback in AU and AG, round up your spare change, do Limit and Stop orders, or send to a friend on Revolut. You can’t send them outside the Revolut platform. 

The fact is that gold and silver aren’t e-money and, as such, are not regulated by the UK Financial Conduct Authority and other government bodies.

Cryptocurrencies

You can exchange 20+ cryptocurrencies, including Bitcoin, Ether, Stellar and more. You can buy, sell, and transfer your crypto to friends just like any other currency. 

And the company recently introduced the ability to move your crypto from the Revolut platform into a crypto wallet or cold storage. Withdraw up to £1000 per month, or £500 per day to up to 3 addresses.

Read our Revolut: Bitcoin and other Cryptocurrencies review here

What types of trading accounts are supported?

At the moment, only General Investment Accounts for individuals over 18 are supported. Other types of trading accounts like Junior ISAs, Lifetime ISAs, Stock and Shares ISAs, Joint Accounts and SIPP (self-invested personal pension) accounts aren’t supported, but they are on Revolut’s roadmap.

What type of orders can I submit?

Revolut supports:

  • Market Orders, 
  • Out-of-Hours Orders, 
  • Limit Orders and 
  • Stop Orders

A market order is an instruction to the broker or app, in this case, to buy a stock immediately at best available current price.

Out-of-hours trading occurs outside regular market hours, and before, it was only possible for high-rolling investors and institutional investors like mutual funds. Now it’s available to everyone. 

Pre- and after-hours markets will generally have less liquidity, more volatility, and lower volume than the regular market. You have to be aware that the stock may not necessarily open at the same price it traded in the after-hours market.

If you place a Limit Order, it means that you’ll be buying or selling at a specified price or better. Buy Limit Orders will be fulfilled at the designated price or lower, and Sell Limit Orders will be fulfilled at the specified price or higher.

When you have a price in your mind that you want your stock to be sold at, you can place a Stop Order. When the desired price is reached, a Stop Order becomes a Market Order and is executed at the best available price, which can be lower or higher than the Stop Price.

Fractional shares

Buying whole stocks can cost a lot of money, even for a single stock. Shares in many popular companies such as Amazon, Google, or Microsoft, can cost thousand(s) dollars each. 

To make their trading platform more approachable, Revolut decided to offer people to buy fractions of a share. That’s nothing new in the trading and investing world as some of the most popular trading apps like Robinhood and eToro include this at their core. 

The minimum amount you can invest with Revolut is $1 or 0.00000001 of a share. You can buy a fraction of a share for that dollar and own a (tiny) piece of the company. 

Can I participate in voting at meetings?

If you own shares or even a fraction of a share in a US-listed company, you are an eligible voting shareholder! You’ll receive an email invitation to vote, and they will relay your instructions to the vote tabulator of the vote or the meeting.

Now, before you go on a power trip, you have to know that the vote tabulator may or may not decide to round or ignore the fractional share-ownership depending on the policy they choose to follow. 

What are the order limits?

Revolut increased order limits from $1,000 to $10,000, and they will be reviewing this limit over time which means that it could go up again. 

You can place an order up to a maximum of US$ 10,000 (or up to 500 shares if they are worth less than US$ 10,000) at any one time. That last part is essential. It means that you can’t buy $11,000 worth of stock in one go, but you can buy $10,000 worth of stock and then immediately after, buy another $10,000 of the same stock. 

Which countries are supported? 

Stock trading is currently only available to users in the UK and EEA (European Economic Area).

How to open a trading account with Revolut

To open a trading account, you need to have a Revolut account and be more than 18 years old. You can easily open an account on their website or by downloading the Revolut app.

You also have to submit information about your annual income, occupation, and net worth before opening your trading account for regulatory purposes.

How often can I trade?

You can basically trade as often as you like. You need to follow only one rule and that you agree not to break when opening a trading account – the Pattern Day Trading rule.

Day trading means that you bought and sold the same stock on the same day. You need to sell the stock for it to qualify as a day trade. If you just buy it without selling, it’s not a day trade.

Pattern Day Trading means you’ve made more than three day trades over five business days. You can see how many day trades you can still make without breaching the Pattern Day Trading rule in your Revolut app.

Can I cancel my order?

You can only cancel or withdraw an Order before it’s executed. You can also request to cancel your Out-of-Hours, Limit and Stop Orders, but there’s no guarantee that it will be cancelled.

Dividends 

Dividends are your share of a company’s profits and are typically paid out quarterly. Companies that pay out dividends are usually older and more established. Whereas tech, fintech, biotech, and similar stocks don’t pay out dividends but rather reinvest the profits back into the company. 

If a company issues a dividend, your account will be credited with the amount on the payment date. Dividend payments may be subject to US withholding tax which the Third Party Broker will withhold. 

Withholding tax is usually 30% but may be reduced depending on your country of residence and whether that country has an applicable tax treaty.

The dividend payment will be proportionate to the amount you invest. That means that you’re entitled to dividend payment even if you own a fraction of a share. 

What are the trading hours?

The largest marketplaces are the New York Stock Exchange (NYSE) and NASDAQ. They have regular trading hours of 9:30 am to 4 pm Eastern Standard Time (1:30 pm to 8 pm GMT). You can trade as usual during these hours.

Out of Hours, Limit and Stop Orders can be placed at any time but will only be executed during market hours and when the conditions of the order are met.

Social Trading 

Social Trading is only available in the UK at the moment. It’s a way of showing off your trading skills. If you turn your trader profile to public, your performance is recalculated daily alongside all other public traders.

You can see the top 100 traders list on the main Social Trading page. Traders with a risk score above four, who have been active for less than six months, and holding less than two stocks are removed from the list.

Public profiles are discoverable via search by username or real name if they opted in to reveal their full name.

Watchlist

The Watchlist feature lets you keep an eye on all your favourite stocks in one place. You can not only see the real-time prices but also set Price Alerts, so you don’t miss out on an opportunity. 

News Stories

To make informed decisions about which company’s stocks to buy, you need to be on top of the latest news stories. To see the latest news stories, tap on the company you’re interested in and find relevant news from Business Insider, Market Watch, BBC, Bloomberg, and others. For crypto, there are Cointelegraph and Coindesk.

Short selling and leverage

Various sophisticated trading tools like short-selling and leveraging on the market are widely used but not supported by Revolut. Apps like Robinhood and eToro support them, but they are meant for the more experienced investor, especially leverage. If used in the hands of a “newbie” trader, it can mean trouble

How is Revolut Trading regulated?

Revolut Trading Ltd (No. 832790) is an appointed representative of Resolution Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority in the UK.

Is my money safe with Revolut?

Revolut uses a third-party broker in the US called DriveWealth LLC to hold your investments and execute orders. Revolut isn’t responsible for safeguarding your instruments, but DriveWealth is.

The New Jersey-based DriveWealth allows companies across the globe to help their users invest in the US stock market. 

Your investments are protected in the US and covered by the Securities Investor Protection Corporation (SIPC) if DriveWealth LLC cannot meet its obligations to you. They are required to keep their clients’ securities and money separate from their own so that even if they fail, their clients’ assets are safe. 

DriveWealth is also a member of the Securities Investor Protection Corporation, which protects client securities accounts of up to US$500,000. If they cease to operate, their clients’ assets usually are transferred to another registered brokerage firm.

To store the cryptocurrencies held on users’ behalf, Revolut uses some of the most secure methods, such as multi-signature wallets and cold storage. And commodities are kept in a single account in a respectable institution. 

Competitors

eToro 

etoro

eToro offers commission-free stock, ETF, forex, CFD, and crypto trading for users in the US, UK, EU, Australia, and elsewhere. It’s a well-known fintech company that was established in 2007. Just like Revolut, it offers social trading, which lets you copy the strategies of other traders. 

Trading 212 

trading 212

Trading 212 is a global trading app that lets you invest in forex, EFTs, CFDs, and cryptos. They offer a demo account, so you can try the platform out before you invest real money. The company was founded in 2004 and is headquartered in London.

XTB

Another global CFD and forex broker with headquarters in London and Warsaw, which was founded in 2002. It has a long track record and is listed on the stock exchange. 

The bottom line

Revolut’s trading platform is a welcome addition for people looking to invest their money in stocks, cryptocurrencies, or even commodities. It’s a great tool to dip your toes in the trading waters, but for a more serious investing strategy, you’ll have to look elsewhere. 

The Metal account offers the most value for traders as for around 13 quid, you get unlimited trades and cheaper fees. 

Make sure to also read our Revolut: Bitcoin and other Cryptocurrencies overview.