Popular neobank Revolut has expanded its investing providing within the UK.
As a consequence, now you can rapidly entry world markets and asset courses on the platform through Alternate Traded Funds (ETFs). You may as well tuck up your investments contained in the cosy tax-free confines of a shares and shares ISA. There’s pretty.
These welcome strikes come on prime of Revolut’s present vary of shares, valuable metals, and crypto tokens.
Extra is at all times undoubtedly extra. If not at all times, opposite to well-liked opinion, ‘the merrier’. (Invite TI to a celebration and discover out.)
So whereas we’re at all times blissful to see new choices, we should ask: is Revolut good for investing? Whether or not you’re an present person or pondering of turning into one?
Let’s dive in.
Investing with Revolut
Revolut Make investments is an app-only expertise. And a really engaging, streamlined app it’s too. It’ll take you all of about ten minutes to get the cling of the funding options. Albeit that’s largely as a result of there aren’t many.
Right here’s what you are able to do…
Put money into US, UK, and European Financial Space shares
There are over 4,000 shares to select from. Although comparatively few are priced in kilos – and that can matter once we come to the charges.
Commerce a variety of 161 ETFs
That’s not many, particularly when lots of them are priced in euros. (Foreign money change charge alert!)
Top off on valuable metals
There’s gold, silver, platinum, and even palladium if you happen to fancy it.
These aren’t ETCs. You’re shopping for bodily portions of shiny metals as expressed in troy ounces.
Sadly, you’ll be able to’t take supply of the bars nor see a photograph of your private treasure chest. However you’ll be able to pay a mate in gold – in the event that they’re additionally a Revolut buyer. This will likely get costly.
The crypto service isn’t contained inside the investing part of the app. That’s as a result of crypto will not be an funding! [Hollers into the void / at his own co-blogger.]
How a lot does Revolut investing value?
Okay, it couldn’t be less complicated. Ahem. [Draws a deep breath.]
| Plan | Annual value (£) | Free trades | Commerce charge (%) | FX charge (%) |
| Customary | 0 | 1 | 0.25 | 1 |
| Plus | 47.88 | 3 | 0.25 | 0.5 |
| Premium | 95.88 | 5 | 0.25 | 0 |
| Metallic | 179.88 | 10 | 0.25 | 0 |
| Extremely | 540 | 10 | 0.12 | 0 |
You pay the commerce charge when you’ve used up your free trades for the month. The charge is levied on the worth of every order.
For instance, a £1,000 commerce incurs a £2.50 charge – as soon as your free commerce allowance is exhausted.
For £180 a yr, you could be a Buying and selling Professional. This tier grafts on to your present plan and reduces your buying and selling charge to 0.12%. It additionally bestows different advantages like Degree 2 market information and the flexibility to commerce as much as $250,000 a throw on US shares. Helpful, for somebody I’m certain.
FX charges
FX charges apply solely while you breach your month-to-month forex change allowance.
The allowance per plan is:
- Customary: £1,000
- Plus: £3,000
- Different plans: No FX prices
Need to change forex on the weekend? That’s an additional 1% (Customary) and 0.5% (Plus) on prime of the FX charge detailed above.
Your month-to-month allowance doesn’t apply on the weekends. It have to be visiting its nan.
Treasured metals charges
Customary or Plus: 0.99% of the commerce’s worth or £1 – whichever is greater
Different plans: 0.49% of the commerce’s worth or £1 – whichever is greater
And…
Revolut’s unfold.
And…
The FX charges as defined above.
This will all mount up.
Different charges
Do notice that these plans additionally cowl Revolut’s broader vary of companies, past investing.
Set in opposition to that, there are additional banking charges to consider if you happen to’re contemplating Revolut. They will not be what you’re used to. (Look out for the cashpoint withdrawal prices!)
How do Revolut’s investing charges evaluate?
You possibly can make investments extra cheaply elsewhere, even if you happen to’re a Revolut buyer paying right into a plan already.
Buying and selling 212 and Lightyear are app-first funding platforms that supply shares and ETFs for a eager charge. They’re each so-called zero fee brokers and their FX prices are decrease than Revolut’s.
InvestEngine focuses purely on ETFs and has additionally eradicated commerce charges and platform prices for DIY buyers.
Take a look at our dealer comparability desk for extra choices. And that is methods to smash your funding FX charges.
What if I wish to pay a charge?
Many buyers fear that the zero fee dealer enterprise mannequin may very well be unsustainable. If that’s you then Revolut’s Customary and Plus plans look affordable worth – offered you’ll be able to keep away from racking up buying and selling prices.
You could possibly, for instance, pound value common into one GBP-priced ETF monthly on the Customary Plan. Charges incurred: £0 monthly.
Nonetheless, the Premium Plan et al look costly if purely chosen for investing companies.
What funding account sorts does Revolut supply?
Revolut supplies two kinds of funding account:
- Shares and shares ISA
- Normal Funding Account (GIA)
The Shares and Shares ISA is versatile. Revolut doesn’t supply JISAs or pensions.
You can’t switch into the shares and shares ISA. (But.)
Transfers out are money solely.
That’s, you’ll must promote your investments (probably incurring charges) and spend time in money and out of the market if you would like away from Revolut. Exit charges don’t apply.
It appears to be like like you’ll be able to switch in Normal Funding Accounts from some brokers.
The minimal order worth is one pound, greenback, or euro, relying upon which forex you’re buying and selling in.
You possibly can maintain fractional shares for shares however there’s no point out of whether or not the identical is true for ETFs.
Lastly, customer support is chat-only. Neglect telephones.
Is Revolut secure for investing?
If Revolut went bust and your shares or ETF monies had been irrecoverable, you then’d be coated by the UK Monetary Conduct Authority’s Monetary Companies Compensation Scheme (FSCS).
In a nutshell, the scheme is designed to pay out as much as £85,000 per particular person in case your FCA authorised funding platform fails.
Revolut says its investing service is protected by the FSCS scheme.
The Monetary Conduct Authority (FCA) Agency Reference Quantity (FRN) is 933846 for the funding arm of Revolut.
Treasured metals are a special matter: they’re unregulated. FSCS compensation doesn’t apply. Different FCA rules don’t apply. Furthermore, Revolut states the Monetary Ombudsman most likely wouldn’t step in if you happen to had a criticism.
Learn the Dangers part of this phrases and circumstances web page earlier than you spend money on valuable metals with Revolut.
Money isn’t FSCS protected both.
Is Revolut good for ETF investing?
The ETF vary is restricted in the meanwhile. For my part it’s not very effectively curated.
Many funds are priced in Euros. That isn’t ultimate if you happen to’re eager to keep away from FX charge entanglements.
Treasured steel ETCs are solely lacking. This prevents you from investing in gold holdings that may profit from FSCS safety. (I don’t suppose that’s as a result of Revolut would moderately not cannibalise its valuable metals enterprise, huh?)
You possibly can put collectively a cheap passive portfolio with the ETFs accessible. However many classes are solely represented by one GBP-priced fund. And a few sub-asset courses are lacking altogether.
Looking for ETFs can also be finickity.
Granted, all of them seem as a giant lengthy record in an apparent place. However the one strategy to filter is by popping your greatest taxonomic guess into the search area – which is hit-and-miss.
As an example, the time period ‘Rising Markets’ elicited solely euro-priced ETFs. The GBP-priced variations didn’t present up, as a result of they had been tagged with the infinitely cooler-sounding ‘EM’.
In the meantime, the time period ‘bonds’ snubbed ETFs figuring out as gilts. And so forth.
Given the app’s normal slickness, its ETF-tracing powers appear unnecessarily cumbersome. Maybe that can change with future updates.
In different information, there’s no common investing plan. Although these wily European Revolut prospects have one, so possibly this function will come to Blighty sooner or later, too.
Lastly, there’s little or no on the investor schooling aspect. Fortunately although you may get that from Monevator. Begin with this piece on passive investing and this one that includes low-cost ETFs.
Revolut investing overview abstract
Revolut presents present prospects a simple pathway into investing. Nonetheless, cheaper, better-featured options can be found from the devoted funding platforms.
Professionals
- Clear and navigable app that doesn’t overwhelm
- Simple if you happen to’re an present buyer
- Low minimal order worth
Cons
- Restricted vary of ETFs
- Difficult charge construction
- Unregulated valuable metals providing
- Can’t switch ISAs in. Can solely switch out in money
Trustpilot overview rating: 4.5 (however most reviewers are commenting on Revolut’s banking companies.)
Take it regular,
The Accumulator
