Summary: While Revolut allows for ETF investing, its higher fee structure makes it a costlier option. For a more capital-efficient experience, consider using specialized brokers like eToro, which offers zero commissions and competitive spreads on ETFs, making it a more attractive alternative for those serious about their investments.
- Financial Conduct Authority (FCA) regulated broker with over 30 million users.
- Buy, sell and trade over 3,000 Cryptocurrencies, Stocks, ETFs and more.
- Deposit methods include Revolut Bank Transfer, Debit Card, Credit Card, Sofort and more.
Can I Buy ETFs with Revolut?
Certainly, the Revolut app provides various investment options, including key market indices like the NASDAQ and FTSE 100, as well as Bond and Commodity ETFs. However, it's important to note that these offerings are not accessible to investors residing in the European Economic Area or the United Kingdom. Additionally, Revolut's fee structure may give some investors pause. The platform levies a base fee of 0.25%, and the spread can frequently exceed 1.5%, positioning it as a more expensive choice among investment platforms.
How to Buy ETFs with Revolut
If you're a Revolut user looking to invest in ETFs, the most effective way is to go through a regulated broker that operates in your region. By doing so, you can make deposits in any fiat currency and take advantage of a platform specifically designed for investment activities.
Based on our research, eToro emerges as the prime option for Revolut users. The broker offers the flexibility of multi-currency deposits, an extensive portfolio featuring over 3,000 assets and ETFs, and robust compliance with strict regulatory standards. Here is a simple guide to get started with their platform:
- Create Account: Set up your account on eToro and verify your identity (personal or business account).
- Deposit Funds: Select the ‘Deposit Funds’ button to initiate a fiat transfer from your Revolut account via bank transfer, debit card and other options.
- Find ETF: Once the funds are loaded, use the search function to find the ETF you want to invest in.
- Execute Transaction: Input the amount you want to buy, review the details and execute your trade.
What are the Fees?
Revolut imposes a range of fees when it comes to trading ETFs. The commission per trade varies depending on your subscription plan, ranging from one free trade for Standard plans to 10 free trades for Metal and Ultra plans. The commission fee is either 0.25% of the order amount or a minimum country-specific fee, whichever is greater.
Custody fees are set at an annual rate of 0.12% charged monthly. Currency exchange fees may also apply if you need to convert your primary account currency to trade a specific ETF. Regulatory fees for US stock trading, such as SEC and FINRA fees, may also be applicable.
Is Revolut a Good Platform for ETF Investing?
Revolut might look convenient for ETF investing due to its all-in-one approach, but it's not the most cost-effective choice. With a base commission up to 0.25%, along with other fees like custody and currency conversion, the costs can add up. These fees can cut into your profits, especially if you trade a lot.
On the other hand, specialized brokers like eToro offer a more efficient experience. eToro has zero commissions on stock and ETF trading and offers competitive spreads. So if maximizing your investment returns matters to you, consider a specialized brokerage for your ETF investments.
In summary, while Revolut offers a convenient platform for investing in ETFs, it may not be the most cost-effective option due to its range of fees. For those seeking to maximize their returns, considering specialized brokers like eToro could be a wise move. eToro offers a user-friendly experience, an extensive asset portfolio, and zero commissions on stock and ETF trading, making it a standout choice for Revolut users interested in ETF investing.