Revolut Review

Company Background & Regulation

Revolut Trading is a division of Revolut, a financial technology company founded in 2015 by Nikolay Storonsky and Vlad Yatsenko. Initially launched as a digital banking app, Revolut expanded its services to include trading in 2018, leveraging its existing user base and technological infrastructure. Headquartered in London, UK, Revolut has rapidly grown to become a significant player in the financial services sector, offering a wide range of products beyond traditional banking, including trading, insurance, and even cryptocurrency transactions.

Ownership of Revolut rests with its founders and a series of high-profile investors who have backed the company through several funding rounds. As of the latest information, the company remains privately held, with significant investment from venture capital firms such as DST Global and Index Ventures. These investments have allowed Revolut to innovate continuously, expanding its offerings and solidifying its position in the fintech landscape.

Revolut Trading operates under the regulatory purview of the Financial Conduct Authority (FCA) in the UK. The FCA licence number for Revolut Trading is 900562. This regulatory oversight ensures that Revolut adheres to stringent financial standards and practices, providing a level of security and trust for its users. The FCA's regulatory framework is one of the most respected globally, aimed at protecting consumers and enhancing the integrity of the UK’s financial system.

Client fund protection is a critical aspect of Revolut's operations. Although Revolut is not a traditional broker, it does ensure that client funds are protected under its e-money licence. However, it's important to note that, unlike some dedicated brokers, Revolut Trading does not offer specific compensation schemes like the Financial Services Compensation Scheme (FSCS) for trading activities. Therefore, users should be aware of the differences in protection compared to traditional brokers.

Trading Fees & Spreads

Revolut Trading is known for its commission-free stock trading model, which has been one of its major drawing points. Users on the Standard plan can enjoy this benefit for a limited number of trades per month, typically one per month, after which a fee of £1 per trade may apply. The Premium and Metal plans offer more free trades, up to eight and unlimited respectively, highlighting a tiered approach to service access based on subscription levels.

The spread structure at Revolut Trading is particularly notable for its competitive pricing. For stock trading, there are effectively no spreads, as users can trade at the market price. This is a significant advantage for traders who are cost-conscious. However, it's important to note that spreads and fees for cryptocurrency transactions can vary significantly due to market conditions. Revolut typically adds a spread of 1.5% on crypto transactions for Standard plan users, which can be reduced to 0.5% for Premium and Metal users.

Regarding overnight swap rates, Revolut does not apply these charges because it does not offer leveraged trading products. This absence of leverage means that users are buying the actual underlying asset rather than trading on margin, thus eliminating the need for swap rates. This can be advantageous for traders who prefer holding positions longer term without incurring additional costs.

When it comes to deposits and withdrawals, Revolut Trading stands out by offering fee-free transactions within its banking ecosystem. However, users who wish to withdraw funds to non-Revolut accounts may incur fees, depending on their subscription plan. Inactivity fees are not a concern with Revolut, as it does not charge users for dormant accounts, which is a positive aspect compared to some traditional brokers that levy such charges.

In comparison to competitors, Revolut's fee structure is highly competitive, particularly for users who are already part of the Revolut banking ecosystem. While traditional brokers may offer a broader range of investment products, they often come with higher fees and commissions. Revolut’s zero-commission model, combined with its seamless integration into the Revolut app, offers a unique value proposition, especially for casual traders and those who appreciate the convenience of managing their finances from a single platform.

Trading Platforms & Tools

Proprietary Mobile Platform

Revolut Trading offers a proprietary mobile trading platform that integrates seamlessly with the Revolut banking app. Available on both iOS and Android, the mobile platform provides users with a streamlined and user-friendly experience. The app allows clients to buy and sell stocks and cryptocurrencies directly from their smartphones, making it ideal for traders who prefer to manage their investments on the go. The interface is intuitive, designed for ease of use rather than complexity, which can be a double-edged sword for more experienced traders requiring advanced functionalities.

Charting Capabilities

The charting capabilities on Revolut’s mobile platform are fairly basic, catering primarily to novice traders. Users can access simple line and candlestick charts, but the platform lacks the extensive technical indicators and drawing tools often found in more advanced trading platforms. The charts are sufficient for basic market analysis, but traders seeking to perform in-depth technical analysis may find the offering limited.

Order Types and Alerts

Revolut Trading supports fundamental order types, including market and limit orders, allowing users to execute trades at current market prices or set specific price targets. However, the platform does not offer more advanced order types such as stop-loss or trailing stop orders, which are crucial for effective risk management. Alerts can be set up to notify users of price movements, but these are limited in functionality compared to other platforms that offer customisable, condition-based alerts.

API/Algo Trading and Third-Party Integrations

As of the current offering, Revolut Trading does not support API access or algorithmic trading, which limits its appeal to algorithmic traders and developers interested in automating their trading strategies. Additionally, there are no third-party platform integrations available. Revolut's focus remains on providing a simplified trading experience that is closely tied to its banking services, rather than expanding into more sophisticated trading capabilities.

Account Types & Minimum Deposit

Account Tiers

Revolut Trading offers several account tiers, each with varying features. The basic plan, known as the Standard account, provides a limited number of free trades per month and is ideal for casual investors. The Plus account offers a slightly higher limit on free trades, while the Premium and Metal accounts offer more substantial benefits, including a greater number of free trades and additional financial services. The Metal account, at the top tier, comes with the most comprehensive set of features, appealing to those who regularly trade or require Revolut’s full suite of financial services.

Features per Tier

Each account tier provides a distinct package of features. For instance, the Standard account includes one commission-free trade per month, whereas the Plus account increases this to three. The Premium account allows for eight commission-free trades monthly, and the Metal account offers an impressive unlimited commission-free trading experience. These benefits are part of Revolut's strategy to integrate trading seamlessly with its banking services, encouraging users to upgrade for more extensive financial management tools.

Demo Account, Islamic Account, and Minimum Deposit

Currently, Revolut Trading does not offer a demo account, which could be a disadvantage for potential users who wish to familiarise themselves with the platform before committing real funds. Additionally, there is no dedicated Islamic account offering, reflecting the platform’s focus on simplicity and broad market appeal rather than niche services. A significant advantage of Revolut Trading is the absence of a minimum deposit requirement, allowing users to start trading without any initial financial commitment. Deposits can be made through various supported methods, including bank transfers and debit/credit cards, leveraging Revolut’s existing financial infrastructure to facilitate seamless transactions.

Markets & Instruments

Revolut Trading offers a selective but focused range of markets and instruments, primarily catering to those interested in stock and cryptocurrency trading. Its platform facilitates access to hundreds of shares from major stock exchanges, including the New York Stock Exchange (NYSE) and NASDAQ. This allows users to invest in some of the world's most recognised companies, making it an attractive option for those interested in mainstream equity markets.

In the realm of stocks, Revolut Trading provides the opportunity to trade fractional shares, a feature that democratizes access to high-value stocks by allowing investors to purchase portions of a share. This is particularly beneficial for traders who might not have substantial capital but wish to diversify their portfolios with investments in blue-chip companies. While the platform excels in offering U.S. equities, it lacks diversity in terms of international stock markets, which may be a limitation for traders looking to explore global opportunities.

Crypto enthusiasts will find a range of digital currencies available for trading on Revolut's platform. This includes popular options like Bitcoin, Ethereum, and Litecoin, among others. The integrated nature of cryptocurrency trading within the Revolut app offers a seamless experience for users who are already familiar with Revolut's banking services. However, it's important to note that the platform does not support more traditional asset classes such as forex, commodities, or bonds, which could deter traders seeking a more comprehensive range of investment options.

Safety & Security

Revolut Trading, being a part of Revolut Ltd, is regulated by the Financial Conduct Authority (FCA) in the UK. This affiliation with a reputable regulatory body provides a foundational level of trust and assurance to traders, as FCA regulations require strict adherence to financial standards. One of the primary safety measures in place is the segregation of client funds, ensuring that customer assets are kept separate from the company's own funds. This segregation protects users' deposits in the unlikely event of the company's insolvency.

Furthermore, Revolut offers negative balance protection, which prevents users from losing more than their account balance, essentially safeguarding them from incurring debt due to trading activities. The platform also takes cybersecurity seriously, employing advanced encryption protocols to secure user data and transactions. Despite its relatively short history since its founding in 2018, Revolut has maintained a solid regulatory track record, with no significant breaches reported, adding an additional layer of credibility to its trading services.

Who Is Revolut Trading Best For?

Revolut Trading is particularly well-suited for beginner traders and casual investors who are already part of the Revolut ecosystem. Its integration with Revolut's banking app offers a seamless transition for users looking to expand their financial activities into trading. The platform's user-friendly interface and straightforward approach to trading make it an attractive choice for those new to the investment world, especially given the absence of a minimum deposit requirement and the ability to trade fractional shares.

More experienced traders might find Revolut Trading's offerings somewhat limited, particularly due to its lack of advanced research tools and a narrower range of available markets. However, for traders primarily interested in U.S. stocks and mainstream cryptocurrencies, Revolut provides a competitive, commission-free trading environment, albeit with a cap on the number of free trades per month on its basic plan.

Revolut Trading is not a dedicated brokerage platform, which means it might not cater to traders seeking comprehensive market analysis tools or a wide variety of asset classes. Nevertheless, it remains a viable option for those who prioritise convenience and integration with banking services over a broad array of trading features.

• Ideal for existing Revolut users looking to diversify into trading.
• Suitable for beginner investors interested in U.S. stocks and cryptocurrencies.
• Attractive to traders seeking commission-free stock trading with fractional shares.
• Not ideal for traders requiring extensive research tools and market analysis.
• Limited appeal for those interested in a broad spectrum of asset classes beyond stocks and crypto.
• Less suited for professional traders seeking advanced trading platforms and leverage options.