Trading Fees on Revolut: What You Need to Know

If you're using Revolut for trading, chances are you've wondered about the true cost of those transactions. Trading fees can eat into your profits before you even realize it, and Revolut has specific fee structures that vary based on account types and trade volumes.

Here's the kicker: many users don’t realize how these fees accumulate over time. Whether you’re just buying a few shares of your favorite company or diving into cryptocurrency, understanding Revolut's fee structure could save you a significant amount of money in the long run.

Let’s break down the key fees and factors:

• Basic Account vs. Premium Account: Revolut offers different account types—Standard (free), Plus, Premium, and Metal. Each account type comes with different perks, but they also carry different fee structures for trades. While the Standard account might seem attractive due to its zero annual fees, it comes with a catch—higher trading fees. If you’re a more frequent trader, Premium or Metal accounts might be worth considering.

• Commission-Free Trades: One of Revolut’s key selling points is its commission-free trades. But here’s the twist: this only applies to a limited number of trades per month. For example, Standard account holders can make 1 free trade per month, while Premium users enjoy up to 8 free trades. After you’ve exceeded this limit, you’ll be charged a trading fee of £1 per trade. Metal account holders get an even larger buffer, but no account is entirely free of charge after you pass your monthly limit.

• Currency Exchange Fees: Revolut supports trading in various global markets, meaning currency exchange comes into play. If you’re trading stocks listed in a foreign currency, Revolut will automatically convert your balance, but this incurs a 0.5% currency exchange fee if you're on the Standard or Plus plan and no fee on Premium or Metal plans. This is often an overlooked cost that can accumulate, especially when trading in volatile markets with significant currency fluctuations.

• Custody and FX Fees for Cryptocurrencies: If you're diving into cryptocurrencies on Revolut, keep in mind that custody fees may apply. These fees cover the secure storage of your assets and usually range from 0.12% to 0.25% annually, depending on the size of your holdings. FX fees can also come into play when trading between cryptocurrencies or converting back to fiat.

• Hidden Costs in Crypto Transactions: Unlike traditional stocks, cryptocurrencies on Revolut are subject to additional spreads. The spreads can vary, but typically hover around 1.5% to 2.5%. So, if you’re trading high volumes of crypto, this seemingly small percentage can take a large bite out of your returns.

How does this impact your trading strategy?

For smaller trades, these fees might not seem significant. But when you're scaling your investments or making frequent trades, these costs can quickly add up. A careful review of your trade history might reveal how much you're really paying. It’s essential to understand your account’s fee structure to make informed decisions about whether to upgrade or adjust your trading habits.

To visualize the cost structure better, here’s a table summarizing the fees across different account types:

Now, here’s the million-dollar question: Should you upgrade your Revolut account for better trading conditions? If you’re a casual trader making a few trades per month, the Standard or Plus account might suffice. However, if you’re serious about trading and making frequent trades, the Premium or Metal accounts could offer enough in fee savings to justify their monthly fees.

There’s another layer to this discussion: market timing. Trading frequently can increase your costs, but are you getting enough out of each trade to offset these expenses? Revolut’s fee structure favors those who time their trades well and minimize unnecessary actions. For cryptocurrency traders, the volatile nature of the market adds an extra layer of complexity to this decision. Timing a purchase or sale when spreads are low can significantly impact your returns.

In summary, Revolut’s trading fees aren’t immediately obvious, but they can erode your profits over time if you’re not careful. Understanding the limitations of your account type and planning your trades accordingly can help minimize unnecessary expenses. If you’re trading at scale, upgrading to a higher-tier account or choosing a dedicated trading platform with lower fees might be worth considering. But for those making occasional trades, Revolut remains a convenient, cost-effective option—if you play by the rules.

Do you think you’re paying too much? Now’s the time to dive into your trading history and figure out how much those small fees are costing you.