Is Revolut safe for stock trading? Is it possible to buy stocks without paying any fees? Can you earn from stock market fluctuations by using the Revolut trading app? We will look at all of these and more topics in this review. And most importantly, what about withdrawals? How to withdraw money from Revolut stocks? Let’s dive in!
Revolut stock trading
Revolut trading launched in mid-2019. In the beginning, the app was buggy, and there were not that many companies shares to buy. Fast forward a couple of years, and the app is working almost without issues and provides a great user experience. New companies show up every week, so if the company you want to buy is not listed yet – don’t worry, most likely it’ll appear soon in the company list. The good news is that even hot IPO’s show up quickly and you won’t miss the party when your favourite company goes public.
Revolut has proven to be a reliable and easy app for European and British investors (and not only) to buy stocks from the U.S. stock exchange. However, it’s highly likely not the main reason why people chose the app and it’s certainly not the best stock trading app in Europe yet. In fact, Revolut trading Ltd. stopped supporting European traders after the BREXIT due to regulatory limits. More on that in the safety section.
There are some downsides like missing many companies that may be hot in the market, trading limits, the number of stocks you can buy and some app bugs here and there. But to be honest, lately, the app seems to be working without technical glitches. It is impressive, counting in the time frame the company has achieved such results.
Revolut trading limits
Revolut monitors your trading activities and you must always comply with Pattern Day Trading rules that restrict you to day-trade more than 3 times in 5 business days. Depending on your account type, you may have 1, 3, 5 or unlimited commission-free trades per month available.
You can buy stocks at a minimum of 1 USD and up to 10,000 USD in one order, or up to 500 company shares. If you need to buy or sell more, you’ll need to place another transaction order.
Revolut trading fees – Is it commission-free?
Even though the app is said to be a commission-free trading app, there are some fees that you’ll need to pay even on Revolut. Some of these fees are not directly related to the Revolut app but are fees imposed on US stock trading by regulators. These are the fees that you’ll need to pay if you trade stocks on Revolut:
|Custody fees||0.01% once a month when you hold stocks over to the next month.|
|Exchange fees||The trading account is in USD so unless you hold your funds in USD on your Revolut account, you’ll need to exchange funds.|
|Revolut commission-free trades per account type||Standard (€0.00/month) – 1 trade a month|
Plus (€2.99/month) – 3 trades a month
Premium (€7.99/month) – 5 trades a month
Metal (€13.99/month) – Unlimited trades a month
Is Revolut share trading cheap? It is, but if you want to trade more often and avoid fees, you’ll need to look for another broker or to trade within the set limits.
If you want to trade commission-free and access more assets, Revolut may be still far away from platforms like Etoro, which was created for trading specifically. However, we cannot ignore that the Revolut user base is growing at a significant speed. It forces the app to grow along and to add new features, stocks and it doesn’t come free.
Is Revolut safe for stock trading?
Recent changes affected by BREXIT forced Revolut trading to stop supporting traders outside the UK. Revolut Trading Ltd. is regulated by the FCA (Financial Conduct Authority) and it covers only citizens from the UK. If you’re not a UK citizen, your investments on Revolut are no longer protected by the EU deposit protection scheme. Here’s the Revolut announcement:
So keep this in mind if you’re not from the UK and want to use Revolut for stock trading. You may still trade stocks on Revolut at your own risk but don’t be surprised if the Revolut support team doesn’t help you when you get in touch with them. We recommend evaluating how secure Revolut is before depositing large amounts.
If you prefer to trade stocks with a broker that is regulated in the European Union, you can check the link below.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
In short, no stock trading is safe. You should always evaluate risks and rewards because stock trading doesn’t guarantee a steady income. However, stock trading can be very profitable if done right.
Investing with Revolut
Investors can invest in stocks available from NYSE (New York Stock Exchange) and NASDAQ. It has more than 900 stocks available on the app. Currently, there are no European stocks available on the app as well as ETF’s, however, the company keeps saying that it’s in their near plans to add these to the app.
The app is user friendly and intuitive. It has useful features where you can follow the latest news, get important stock data, check top movers and even evaluate your trading results.
Don’t forget about trading tax
In most countries, you should pay tax on capital gains. You’ll need to take care of that yourself. Make sure that you consult with local authorities if you’re not familiar with the process. We recommend you to find out what taxes you need to pay and how to do it.
How to trade stocks with Revolut?
If you are in one of the countries where Revolut trading is operating and meet the age requirements, you can buy stocks in the app in almost no time. Trading with Revolut is no rocket science but how to buy shares on Revolut? Before you do that, make sure that you familiarize yourself with the process and risks involved. Never invest money you cannot afford to lose. Also, you may want to consider a good Revolut trading alternative if you’re from the EU.
It takes 7 simple steps to buy your first company share on Revolut. It’s also possible to buy fractional shares, which means that if the company share you want to buy is worth $1,000 per share and you can only afford to invest $500, you can buy half of the company share and still participate with your investment and gain profit if the company stock price increases. Now, let’s have a look at how you can buy stocks on Revolut.
What do you need before you can buy stocks on Revolut?
There are certain things you need to take care of before you get to buy stocks on Revolut. If you’ve completed the preparation steps listed below, you can skip to the buying bit.
1. Download and install the Revolut app
First of all, to access trading features, you need to download and install the Revolut app. Depending on the mobile device you are using, below are the links where you can download the app:
- For Android users, download Revolut from Google Play Store.
- For iOS users, download Revolut from Apple store.
2. Create & verify your Revolut account
After you install the Revolut app on your mobile device, open the app and create your account. You’ll need to verify your identity as it’s required by the international KYC (Know your customer) and AML (Anti-money laundering) procedures. It’s a common process for financial institutions.
3. Apply for a Revolut trading account
In the app, find the Revolut Stocks tab and apply for a trading account. You’ll need to go through multiple documents and e-sign them before you can get access to the trading account.
4. Add funds to your Revolut account
Add funds to your newly created account. You can top up the account by wire transfer, credit card or another method.
How to buy stocks on Revolut?
Timed needed: 2 minutes.
Investing with Revolut is simple, and you can buy stocks in almost no time. If you don’t have an account with Revolut, first, you need to complete a few steps before buying shares. These are related to the application download, account verification and account funding. Once completed, the steps to buy company shares are as follows:
- Go to the ‘Stocks’ section in the app.
Open the Revolut app and find the ‘Stocks’ tab to begin the investing process.
- Add money to your trading account
Click on ‘+Add money’ and fund your Revolut trading account with the amount you want to invest.
- Click on the ‘Invest’ button
In the ‘Stocks’ tab, click on the ‘Invest’ button to get to the company list available for trading.
- Pick a company stock you want to buy
Find a company from the available stocks list you’re interested in and click on the ‘Buy’ button.
- Enter the amount you want to invest
Enter the number of stocks you want to buy or the amount you want to invest. You can also pick a market order type.
- Review and confirm your transaction order
Make sure everything is correct with your investment order and if so – confirm it.
- Congratulations, that’s it!
You have just bought your first stocks on Revolut trading. You can see the number of stocks you own and the invested amount in your ‘Stocks’ section.
Congratulations, you have just bought your first shares on Revolut. Good luck with trading and remember that trading comes with certain risks. Don’t invest funds you cannot afford to lose.
How to withdraw money from Revolut stocks?
If you want to withdraw funds from the Revolut trading account you can withdraw the uninvested amount at any time. If you have just sold any stocks in the app, you’ll have to wait until the sale order settles and the money becomes available. It usually takes about two days.
Which countries can use the app for trading?
According to Revolut, the following countries can use the share trading service: legal residents of the European Economic Area (EEA) and Gibraltar. The EEA includes Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
And they are working to introduce the USA, Canada, Japan, Singapore, Australia, and New Zealand. Unfortunately, not Switzerland yet.
Revolut ETF trading
Before Revolut introduced stock trading in the app, they mentioned that the goal is to make ETF trading available as well. However, they haven’t launched it yet. The company grows and adds new features. We believe that it won’t take long to get to this point because we have noticed a similar growth with a well-known Robinhood app available in the US.
Some tips to remember when trading with Revolut
- It’s not possible to buy stocks out of stock market working hours. However, there’s an option to submit a shares purchase order before the market opens.
- Try to operate with your funds within working days to avoid overpriced forex rates.
- When a company pays dividends to its investors, they are credited to your account the same day.
- Recent changes associated to Brexit strips the benefit of any EU regulatory protections or investor compensation schemes by trading with Revolut Trading ltd.
To close your trading account, you need to make sure you don’t own any company shares anymore. Withdraw all the funds from your Revolut ‘Stocks’ account and click on three dots where is the ‘Close trading account’ button.
You can make money from Revolut trading when you buy and sell publicly traded company shares. To make money, you need to sell them at a higher price than you have bought. Please note – your capital is at risk and there’s no guarantee that you will earn from your trades. You may as well lose on your trades when company shares decrease in value.
To buy stocks on Revolut, you need to open a trading account on the Revolut app. Once you complete your verification, you’ll be able to access the list of companies available. Pick a company you want to buy, enter the number of stocks or value, and confirm your order.
There are selling and buying limits on the app. You can buy stocks at a minimum of 1 USD and up to 10,000 USD in one order, or up to 500 company shares. If you need to buy or sell stocks for a higher value or amount, you’ll need to place multiple orders to divide the order into smaller pieces.
No, but you can place a trading order before the market opens or after it closes. The order will be executed once the market opens again.
Revolut Trading Ltd. is an appointed representative of Resolution Compliance Ltd, which is regulated by the Financial Conduct Authority (FCA) in the UK. Revolut Trading Ltd. is not regulated in Europe.