In today’s accessible investment landscape, exchange-traded funds (ETFs) have emerged as a potentially lucrative option for diversified market exposure. This guide provides essential information and a step-by-step approach to buy ETFs with Revolut investing platform.
Revolut offers the ability to invest in a range of ETFs directly from its mobile app. However, its high fees of 0.25% base charge plus a 1.49-3% trading fee make it one of the costlier choices compared to alternatives like eToro. We walk through the process of funding a Revolut account and placing ETF orders while weighing the pros and cons of using Revolut versus other brokers.
Revolut’s Key Metrics:
- Global rank decreased from #4,722 to #4,439 over the past 3 months
- Ranked #12 in Financial Planning and Management category in the UK
- Total visits were 11.9 million last month, up 4.22% from previous month
- Bounce rate is 52.46%
- Average pages per visit is 4.67
- Average visit duration is 3 minutes 15 seconds
- 54.27% of audience is male, 45.73% is female
- Largest age group of visitors are 25-34 years old (32.8%)
- Top country for traffic is UK (14.43%), followed by Poland (7.49%) and France (7.23%)
- Most website traffic comes from direct visits (39.48%), followed by organic search (31.26%)
What are ETFs?
ETFs are bundled investment funds that track an underlying index or basket of assets. They provide easy, diversified access to entire markets and sectors. Popular ETFs might track indexes like the S&P 500, NASDAQ 100, or FTSE 100 or focus on high-growth industries, geographical regions, or investment styles.
Revolut’s ETF Offerings
Revolut offers trading access to a range of ETFs from major providers like Vanguard, iShares, and Lyxor. Options focus predominantly on major global indexes and leading country/regional benchmarks. However, Revolut’s selection is still quite limited compared to dedicated investment platforms.
Step-by-Step Guide to Buy ETFs with Revolut
Step 1: Open a Revolut Account
Download the Revolut app, provide your personal details, and complete the sign-up process to open a free standard account. Upgrade to a paid Plus/Premium plan to unlock stock/ETF trading.
Step 2: Fund Your Account
From the app’s home screen, top-up your Revolut balance with a bank transfer, debit/credit card, or other payment option.
Step 3: Access Investment Platform
Navigate to the Investing screen within the Revolut app and enable stock/ETF investing if prompted during initial access.
Step 4: Choose an ETF
Browse or search Revolut’s available ETF list. Select your chosen ETF and input your desired investment amount.
Step 5: Review and Place Order
Verify order details like ticker, units, price, and total cost. Swipe to submit your purchase order for the ETF.
Following order execution, monitor your ETF investment’s performance daily via the Revolut Investing dashboard. You can sell holdings or layer in additional purchases over time.
Alternatives to Revolut
While simple for basic investing, Revolut’s ongoing fees could reduce long-term returns versus cheaper options. eToro offers a more cost-effective choice.
Here’s a quick step-by-step guide to get you started:
- Go to eToro’s website to create an account and verify your identity.
- Click the ‘Deposit Funds’ button and choose the currency (GBP/EUR) and payment method. Transfer from Revolut.
- Once the deposit is completed, use funds to invest in your chosen ETFs.
Revolut ETF Fees
Revolut levies a 0.25% account fee plus a per-trade fee ranging from 1.49-3% depending on your subscription tier. Compared to zero-commission alternatives, these mark some of the highest ETF investing fees globally.
Taxes on Revolut ETF Investments
Taxes on capital gains and dividends from U.S. or EU-listed ETFs depend on your country of tax residence. U.S. investors face short & long-term capital gains taxes, for instance. Always consult a tax expert to understand the implications.
Is Revolut Good for Buying ETFs?
While Revolut enables straightforward ETF investing from its mobile app, high ongoing fees could cut into long-term returns compared to cheaper alternatives like eToro or Vanguard’s UK brokerage. Review all your options before deciding.
In summary, Revolut allows customers to conveniently invest in ETFs as part of its mobile-based wealth offering. However, carrying higher fees than most dedicated platforms, investors should carefully weigh the overall value proposition before committing funds. Tracking performance and costs over time will shed light on Revolut’s suitability.
What are some of the most traded ETFs on Revolut?
Some of Revolut’s most-held ETFs include the Vanguard S&P 500 UCITS ETF, iShares Core FTSE 100 UCITS ETF, and the Lyxor Nasdaq 100 ETF.
What trading fees does Revolut charge for ETF investing?
Revolut charges a 0.25% account fee plus a 1.49-3% trading fee per transaction, depending on your monthly Revolut plan. These mark some of the highest fees among mainstream investing platforms.
How do I add money to Revolut for stock and ETF investing?
You can fund your Revolut account with a debit/credit card, bank transfer, or other payment methods. Supported currencies include GBP, EUR, USD and more. Top up your balance, then access the Investing dashboard to purchase ETFs.