How to Buy S&P 500 with Revolut
Explore the costs and steps to buy the S&P 500 with Revolut and decide if this investment platform suits your needs.
74% of retail CFD accounts lose money.
Summary: Revolut allows investment in the S&P 500 through ETFs, offering access to a robust portfolio of U.S. companies. However, a 0.25% transaction commission and potentially high spreads could make it costlier compared to other popular platforms like eToro, which offers lower fees.
Investors should carefully evaluate all associated costs and compare different platforms to ensure they choose one that best fits their investment objectives and budget.
Get the daily newsletter keeping 200,000 investors ahead of the market.
Can I Buy the S&P 500 with Revolut?
Yes, Revolut provides the option to invest in the S&P 500 via exchange-traded funds (ETFs) that track the performance of the index. This feature gives investors access to a broad selection of premier U.S. companies that are part of the S&P 500.
However, it's important to note that Revolut imposes a 0.25% commission on transactions. Also, the spread, which is the difference between the buying and selling prices, can sometimes surpass 1.5%. Due to these costs, investing in the S&P 500 through Revolut might be more expensive compared to other stock trading platforms in Europe. When choosing a broker, always consider these fees carefully as they can diminish your overall investment returns.
How to Buy S&P 500 with Revolut
To buy S&P 500 or NASDAQ shares using Revolut, first transfer fiat currency from your mobile banking app to a trusted exchange. In the UK and EU, eToro is a preferred choice due to its straightforward, low-cost deposit process from Revolut, adherence to financial rules, and a wide selection of over 4,500 tradable assets, including the S&P 500.
Here’s a detailed guide on how to proceed:
- Visit eToro: Navigate to eToro’s website, register for an account, and complete the identity verification.
- Initiate Deposit: Look for the ‘Deposit Funds’ button, usually found at the lower left of the screen.
- Select Currency and Payment Method: Choose your desired currency (e.g., GBP or EUR) and payment method (such as Bank Transfer) and then complete the transfer from your Revolut account.
- Invest: Once your deposit is confirmed, use your available balance to invest in the S&P 500.
What are the Fees?
Revolut's fee structure for investing in the S&P 500 is quite high compared to other platforms. The fees differ based on your product plan, with monthly subscriptions costing up to 11 Euros. For those on the Premium or Metal plans, a substantial 1.49% fee is charged. Users on the Standard and Plus plans face a 3% fee.
In contrast, a regulated platform like eToro provides more affordable options. eToro does not impose trading fees and uses a variable spread, which typically averages about 1% across a broad range of tradable assets, including the S&P 500.
Is Revolut Good for Investing in the S&P 500?
Revolut offers a convenient way to invest in the S&P 500, particularly for those already using its banking services. However, its relatively high fees are an important consideration. Users on the Premium or Metal plans face a 1.49% fee, while those on Standard and Plus plans encounter a 3% fee, much higher than many of its competitors.
Other platforms often boast lower or no trading fees and feature more competitive spreads. When selecting an investment platform, it's crucial to weigh the fees, user experience, range of financial products, and your specific investment goals. Ensure thorough research is done, paying close attention to costs, regulatory compliance, and the variety of investment options available before making your choice.
Bottom Line
In conclusion, while Revolut offers a convenient route to invest in the S&P 500 via ETFs, potential investors must be mindful of its higher fee structure, which includes a 0.25% commission and a possible spread exceeding 1.5%. These costs could make investing through Revolut pricier than other platforms such as eToro, which presents lower or no trading fees and competitive spreads.
Accordingly, when deciding on a platform for investing in the S&P 500, it's essential to carefully consider all fees alongside factors like platform reliability, user experience, and product offerings to ensure they align with your investment objectives.