Summary: Revolut does provide its users with the ability to invest in a variety of stocks, but it is generally seen as a more expensive option in the UK and Europe due to its base fee of 0.25% and an average spread exceeding 1.5%. Although it is FCA regulated and secure for stock trading, its high costs can deter many cautious investors.
Based on our research, eToro is often recommended as a preferred alternative. It offers a more cost-effective and secure platform for investing. As an FCA-regulated exchange, eToro offers a comprehensive portfolio of over 3,000 assets, including stocks, cryptocurrencies, and more, without charging trading fees and with competitive spreads.
Can you Buy Stocks with Revolut?
Yes, you can invest in stocks with Revolut provides a unique feature where users can directly purchase shares and equities from different markets around the world. This extends their services beyond just being a digital bank, offering users the chance to invest in shares of various companies.
But keep in mind, buying stocks through Revolut comes with a base fee of 0.25%, and a spread that can sometimes go above 1.5%. This makes it more expensive compared to other stock trading platforms in Europe. Despite the convenience Revolut offers, users should consider how these fees could eat into their overall investment returns. It's always wise to factor in these costs when investing in stocks through Revolut.
How to Buy Stocks and Shares with Revolut
When it comes to buying shares through your Revolut account, a straightforward method involves transferring money from your mobile banking app to an accredited exchange. For those in the UK and EU, eToro is a great option due to its efficient and low-cost deposit process, regulatory compliance, and extensive range of over 3,000 assets available for trade, including individual company shares.
Here's a step-by-step guide to get you started:
- Go to the eToro website, set up an account, and verify your identity.
- Find and click the 'Deposit Funds' option, typically located at the lower left of your screen.
- Choose your preferred currency (such as GBP or EUR) and your payment method (like Bank Transfer), and then complete the transaction from your Revolut account.
- Once your deposit is successful, you can use the balance to invest in the stocks of your choice.
Revolut Stocks Fees
When it comes to fees for buying stocks, Revolut is among the more expensive platforms in comparison to other stock investment services. Revolut's fee structure varies based on the user's "product plan," a monthly subscription that could go up to 11 Euros. Those using Premium & Metal tiers are charged a substantial fee of 1.49%, despite having a higher subscription level. On the other hand, Standard & Plus users face a 3% fee.
On the flip side, a regulated platform like eToro presents a more budget-friendly alternative. eToro doesn't charge any transaction fees and maintains a variable spread that averages around 1% across its wide variety of available assets. This could be a more cost-effective solution for those looking to invest in stocks.
Is Revolut Good for Stock Investing?
Revolut might not be the go-to platform for those in the UK and Europe looking to invest in the stock market. High transaction fees, wide spreads, the necessity for a monthly subscription, and a relatively narrow selection of available equities are among the factors that may deter investors. Despite being under Financial Conduct Authority (FCA) regulation, the steeper fee framework could considerably undermine an investor's earnings from stock investments, thus calling into question the platform's overall effectiveness for equity investing.
In conclusion, while Revolut offers the convenience of investing in stocks directly from its app, its higher fees compared to competitors may be a deterrent for potential investors. The significant fees charged by Revolut can eat into the overall returns on investments, making it less cost-effective compared to other options like eToro, which offers a wider range of assets and lower fees. Therefore, while Revolut's service extends beyond its digital banking offering, investors should carefully consider these factors when deciding on the best platform to buy stocks.