How to Buy Gold with Revolut
Find out if investing in gold with Revolut is worthwhile by assessing transaction fees and the platform's regulatory status.
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Summary: Revolut allows direct purchases of gold and other commodities but with higher transaction fees and without Financial Conduct Authority (FCA) regulation, making it potentially costly and less secure.
Investors might find eToro a preferable option for its lower fees, extensive range of assets, and compliance with FCA regulations, ensuring a more secure and cost-effective investment process.
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Can I Buy Gold with Revolut?
Yes, Revolut allows you to purchase gold directly through its platform. It's an extension of their digital banking services, letting users broaden their investment choices by including commodities such as gold, silver, platinum, and palladium.
However, there are two important considerations. First, Revolut charges a base fee of 0.25% on gold transactions, and the spread can often surpass 1.5%, which could make it more expensive compared to other platforms. Second, the commodities trading service at Revolut is not regulated by the Financial Conduct Authority (FCA), raising potential concerns about security and regulatory compliance.
How to Buy Gold with Revolut
If you're interested in buying gold and have a Revolut account, consider using eToro, which starts with fees as low as 0.15%, especially if you're in the UK or EU. eToro, regulated by the FCA, offers a straightforward deposit process, low fees, and a diverse range of Gold, Silver, and other commodity ETFs, plus over 4,500 tradable assets.
Here’s a quick guide to get started:
- Sign Up: Visit the eToro website and register. You'll need to verify your identity during registration.
- Deposit Funds: Log in and click the 'Deposit Funds' button on the lower left corner of the screen.
- Select Payment: Choose your currency, such as GBP or EUR, and select a payment method like a Bank Transfer from your Revolut account.
- Invest: Once your funds are deposited, you can start investing in gold or other assets that interest you.
Revolut Gold Fees
Investing in stocks through Revolut can become expensive, with fees varying according to your subscription level. Premium & Metal members incur a 1.49% fee, whereas Standard & Plus users pay 3%. Additionally, Revolut charges a monthly subscription of £12.99 or an annual fee of £120.
In contrast, eToro presents a more cost-effective alternative. It offers zero commission on popular Gold ETFs, such as the SPDR Gold ETF (GLD), and generally keeps spreads close to 1%. For those looking to save on costs, eToro presents a more affordable option.
Is Revolut Good for Gold and Commodities?
Revolut might not be the ideal choice for investing in commodities due to its high transaction fees and significant spreads, which could decrease your returns. Additionally, there's a mandatory subscription fee of £12.99 per month or £120 annually. More importantly,
Revolut lacks regulation from the Financial Conduct Authority (FCA), potentially increasing investment risk. Considering these points, looking into other regulated and more cost-effective platforms could better serve your commodity investment goals.
Bottom Line
In conclusion, while Revolut offers the ability to purchase gold and other commodities, potential investors should be wary of its higher fees and lack of regulation by the Financial Conduct Authority (FCA). This could make transactions costlier and riskier compared to other platforms. For more cost-effective and secure options, consider regulated platforms like eToro, which not only provide lower fees but also a wide range of investment assets.