Revolut Trading Review

Company Background & Regulation

Revolut Trading was launched in 2018 as part of the broader Revolut financial ecosystem, which was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko. The company is headquartered in London, UK, and has quickly grown to become a significant player in the fintech space, offering a range of services from banking to trading. Revolut Trading was introduced to leverage the existing infrastructure of Revolut's financial app, providing users with seamless access to financial markets.

Ownership of Revolut Trading falls under the umbrella of Revolut Ltd, which has garnered substantial investments from prominent venture capital firms to fuel its rapid expansion. The company's innovative approach and user-friendly platform have helped it amass over 40 million users globally, creating a large built-in audience for its trading services.

Revolut Trading is regulated by several financial authorities, ensuring compliance with stringent industry standards. In the UK, it operates under the regulation of the Financial Conduct Authority (FCA), with the reference number 793714. Additionally, it holds a licence from the Cyprus Securities and Exchange Commission (CySEC), allowing it to offer services throughout the European Economic Area. These regulatory licences ensure that Revolut adheres to robust operational and risk management standards.

Client fund protection is a priority for Revolut Trading. In compliance with FCA regulations, client funds are kept segregated from the company's operational funds, safeguarding them against potential financial instability of the firm. Furthermore, Revolut Trading is a participant in the Financial Services Compensation Scheme (FSCS), providing eligible clients with compensation of up to £85,000 in the event of the company's insolvency. This comprehensive regulatory framework and fund protection mechanisms are designed to provide clients with peace of mind.

Trading Fees & Spreads

Revolut Trading has designed its fee structure to be straightforward and competitive, especially appealing to retail traders and investors. One of the standout features is the zero-commission structure for stocks and ETFs available on the Standard plan. However, this plan is limited to just one free trade per month, which could be restrictive for active traders. For those requiring more frequent trading, Revolut offers paid plans that increase the number of commission-free trades.

The spreads at Revolut Trading are highly competitive, particularly for forex trading, with spreads starting from as low as 0 pips on major currency pairs. For equity and ETF trading, Revolut does not charge any direct spread but rather relies on the market spread at the time of trade execution. This approach allows it to offer zero-commission trading effectively, although users on the free plan should be aware of potential spread costs embedded in the market price.

Overnight swap rates, or rollovers, apply to positions held open overnight. These rates vary depending on the asset class and the specific financial instrument. While the exact rates are not publicly listed, they are typically aligned with industry standards. Revolut does not impose additional mark-ups on these rates, maintaining transparency for its users. Clients are advised to check the rates within the app before holding positions overnight to understand the potential costs involved.

Regarding other fees, Revolut Trading does not charge for deposits or withdrawals, making it attractive for cost-conscious traders. However, it is essential to note that while there are no direct inactivity fees, users on the free plan who do not trade beyond their monthly allowance may effectively experience a form of inactivity charge, as they miss out on potential free trades. When compared to competitors, Revolut’s fee structure is particularly advantageous for those who trade infrequently or are just starting, although more experienced traders might find the limitations of the free plan restrictive.

Trading Platforms & Tools

Mobile Platform

Revolut Trading primarily operates through its mobile application, which is available on both iOS and Android. The app is designed for ease of use, seamlessly integrating trading functionalities with Revolut’s comprehensive financial services. This integration allows users to manage their banking, foreign exchange, and trading activities all in one place. The mobile platform supports a variety of assets, including stocks, ETFs, and cryptocurrencies. Users can execute trades, monitor market prices, and access their portfolio while on the move. The app’s interface is intuitive, making it accessible for both beginners and seasoned traders, although it may lack some advanced features that professional traders might expect.

Web Platform

Revolut Trading does not offer a dedicated web-based trading platform. Users are required to conduct all trading activities through the mobile app. While this may be limiting for traders who prefer a larger screen and more comprehensive charting tools, Revolut’s mobile-first approach appeals to its target market of tech-savvy, on-the-go users. The absence of a web platform means that Revolut focuses on optimising the mobile experience, ensuring it is robust and efficient for the majority of its user base.

Charting Capabilities & Order Types

Revolut's app provides basic charting capabilities, suitable for casual investors but insufficient for in-depth technical analysis. Users have access to simple line charts with basic indicators. The app supports essential order types, including market and limit orders, but lacks more complex options such as stop-loss or conditional orders. This limitation may not cater to advanced traders who need sophisticated order execution strategies. Alerts and notifications can be set up to inform users of significant market movements or changes in their portfolio value, ensuring they remain updated in real-time.

Algorithmic Trading & Integrations

Currently, Revolut Trading does not support algorithmic trading or offer an API for third-party integrations. This is consistent with its focus on serving retail investors rather than professional or institutional traders. The lack of third-party integrations means that users cannot directly link Revolut Trading with other financial tools or platforms for enhanced trading capabilities. While this limits potential customisation and automation, it simplifies the user experience, aligning with Revolut’s mission to offer straightforward and accessible financial services.

Account Types & Minimum Deposit

Account Tiers

Revolut Trading offers several account tiers: Standard, Plus, Premium, and Metal. Each tier provides different levels of service and benefits, tailored to meet the diverse needs of its users. The Standard account is free and includes one free trade per month, with subsequent trades incurring a small fee. The Plus account, priced at £2.99 per month, offers three free trades monthly. The Premium account, costing £6.99 per month, provides eight free trades, while the Metal account, at £12.99 per month, includes unlimited commission-free trades.

Features Per Tier

The features available to users depend largely on their chosen account tier. All tiers allow trading in stocks, ETFs, and cryptocurrencies, with access to fractional shares starting at $1. Higher-tier accounts benefit from increased trading allowances and additional perks, such as better currency exchange rates and travel insurance. However, it is important to note that none of the tiers currently offer an Individual Savings Account (ISA) option for UK users, which may be a drawback for those seeking tax-efficient investing solutions. Additionally, while Revolut offers a broad range of cryptocurrencies, its stock and ETF offerings are more limited compared to dedicated brokerage platforms.

Minimum Deposit & Supported Deposit Methods

Revolut Trading does not require a minimum deposit for any of its account tiers, making it accessible for users with varying financial capacities. This no-minimum policy is particularly attractive for new investors or those wishing to start small. Users can fund their Revolut Trading account via multiple methods, including bank transfers and debit/credit cards, facilitated by the broader Revolut app. This integration simplifies the process of moving funds between banking and trading accounts. However, users should be aware that trading on margin is not available, and the maximum leverage offered is 1:5 for certain asset classes, adhering to regulatory requirements.

Markets & Instruments

Revolut Trading offers a diverse array of markets and instruments, albeit with certain limitations compared to traditional brokerage platforms. The platform allows users to trade in a variety of asset classes, including stocks, exchange-traded funds (ETFs), cryptocurrencies, and commodities. This breadth of offerings is designed to cater to the interests of both beginner and seasoned investors who are already part of the Revolut ecosystem.

Within the equities market, Revolut Trading provides access to a selection of global stocks. Although the exact number of stocks available isn't as extensive as some dedicated stockbrokers, the platform covers major US, UK, and European markets. This selection is particularly beneficial for users interested in popular and high-cap stocks. In terms of ETFs, Revolut Trading offers commission-free trading on its Standard plan, which is an attractive proposition for cost-conscious investors. The ability to trade fractional shares from as little as $1 further enhances accessibility for users with varying budget constraints.

Cryptocurrency trading is another significant component of Revolut's offering, featuring over 100 different crypto assets. This makes it one of the more comprehensive crypto trading options available from a financial app. The inclusion of commodities such as gold and silver, though not as extensive as traditional commodity brokers, provides an additional avenue for diversification. Revolut Trading's integration of banking, foreign exchange, and investing within one app is a notable feature, appealing to users who prefer a consolidated financial management experience.

Safety & Security

Revolut Trading takes user safety and security seriously, implementing several measures to protect client funds and data. One of the fundamental policies is the segregation of client funds from the company's operational accounts. This ensures that users' assets are protected in case of financial instability within Revolut. Furthermore, Revolut Trading extends negative balance protection to its users, safeguarding them from falling into debt beyond their initial investment.

Cybersecurity is a top priority for Revolut, employing advanced encryption and security protocols to protect user data and transactions. The company's regulatory history is strong, being regulated by prominent authorities such as the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC). This regulatory oversight provides an additional layer of security and assurance, ensuring compliance with stringent financial industry standards.

Who Is Revolut Trading Best For?

Revolut Trading is particularly well-suited for individuals who are already part of the Revolut ecosystem, offering seamless integration with its banking and foreign exchange services. It caters to tech-savvy users who appreciate a digital-first approach to financial services, providing a streamlined platform for managing various financial activities in one place. Its commission-free trading on stocks and ETFs within the Standard plan makes it an attractive option for cost-conscious investors seeking to maximise their returns.

The platform's offering of fractional shares is ideal for beginner investors or those with limited funds, allowing them to buy into high-priced stocks without requiring significant capital. Additionally, cryptocurrency enthusiasts will find Revolut Trading appealing due to its extensive range of over 100 crypto assets, supported by a user-friendly interface that simplifies the trading process. However, it is worth noting that Revolut Trading might not be the best fit for advanced traders who require extensive research tools and a broader selection of stocks.

In summary, Revolut Trading is best suited for:

• Existing Revolut users looking to consolidate banking and trading activities in one platform.
• Cost-conscious investors interested in commission-free trading of stocks and ETFs.
• Beginner investors who benefit from fractional share trading starting at $1.
• Cryptocurrency enthusiasts seeking a wide range of crypto assets.
• Tech-savvy individuals who prefer a digital-first financial management experience.
• Casual investors who trade infrequently and can benefit from free monthly trades on the Standard plan.

Conversely, Revolut Trading might not be ideal for:

• Advanced traders seeking comprehensive research and analysis tools.
• Investors looking for a broader selection of global stocks.
• UK investors interested in tax-efficient ISA accounts, as these are currently unavailable.