Revolut Trading Fees: How Much Does It Really Cost to Trade?

How much are you really paying for trading with Revolut? If you're trading stocks, ETFs, or cryptocurrencies using Revolut, you might be tempted by the platform's simple interface and its offering of commission-free trades. But like most things in the financial world, there’s always a catch — hidden fees or costs that might not be immediately apparent to everyday users. In this article, we will unravel the actual costs of trading through Revolut, break down their fee structure, and guide you on how to avoid unnecessary charges while maximizing your returns.

The Free Trading Illusion:

Revolut markets its platform with the allure of “zero commission” trades. That’s true—on the surface. They do offer commission-free trading on a limited number of trades per month, depending on your subscription tier. However, this doesn’t mean there are no fees involved at all. In fact, the devil is in the details, and understanding Revolut's fee structure can save you from costly surprises.

1. Subscription Tiers & Free Trades: Revolut operates on a tiered subscription model. Your trading experience—and costs—depend heavily on which subscription you’re signed up for:

   • Standard Plan: This is free, but you only get 1 free trade per month. Each additional trade incurs a fee.
   • Plus Plan: This plan gives you 3 free trades per month.
   • Premium Plan: At a monthly fee of £6.99, you get 5 free trades per month.
   • Metal Plan: The most expensive at £12.99 per month, offering 10 free trades per month.

   After you’ve used up your allotted free trades, you'll be charged a flat fee of £1 per trade, regardless of your plan. If you’re a frequent trader, these fees can stack up quickly, cutting into your profits.

2. Foreign Exchange (FX) Fees: If you’re trading in international stocks that are priced in a currency different from your account’s base currency, you’ll be hit with an FX fee. This charge applies every time you buy or sell a stock in a foreign currency.

   Revolut charges a 0.5% currency conversion fee for users on the free or Plus plans. Premium and Metal plan users avoid this fee on weekdays but will still face weekend FX surcharges of 0.5-1%. This is an important consideration for traders who want to trade in US-based stocks, as currency fluctuations can impact your returns significantly.

   Table Example:

   Plan	Free Trades	Extra Trade Cost	FX Fee on Weekdays	FX Fee on Weekends
   Standard	1	£1 per trade	0.5%	1%
   Plus	3	£1 per trade	0.5%	1%
   Premium	5	£1 per trade	0%	0.5%
   Metal	10	£1 per trade	0%	0.5%

   Key Takeaway: If you’re frequently trading international stocks, especially US or EU equities, the FX fees can be a silent profit killer. You may not even realize how much they affect your gains until you factor them in.

3. Custody Fees: Revolut doesn’t charge traditional custody fees, which are typically charged by brokerage firms for holding your investments. However, you should always keep an eye on the fine print. Revolut makes money in other ways, such as spreads and indirect fees, that we’ll get into below.

4. Spreads on Cryptocurrencies: Cryptocurrencies are notoriously volatile, and trading them often incurs higher fees across all platforms. Revolut charges a spread fee when you trade cryptocurrencies. This spread can be as high as 1.5% for Standard and Plus users, while Premium and Metal users see lower spreads of around 1%.

   This fee applies every time you trade a cryptocurrency, whether you’re buying or selling. So, if you’re frequently dipping in and out of crypto trades, these spread costs can quietly reduce your profits.

   Table Example:

   Crypto Purchase	Plan	Spread Fee
   Bitcoin	Standard	1.5%
   Ethereum	Plus	1.5%
   Litecoin	Premium	1%
   Ripple	Metal	1%

5. Inactivity Fees: While Revolut doesn’t have specific inactivity fees for trading, it's always wise to be aware of your account activity. Some platforms will start charging if your account remains idle for too long, though Revolut doesn’t explicitly state this for now. It's a good practice to stay engaged with your account to avoid any sudden policy changes.

6. Hidden Costs in Bid-Ask Spreads: One of the lesser-known costs of trading, especially in volatile markets, is the bid-ask spread. This is the difference between the price at which you can buy a stock (ask price) and the price at which you can sell it (bid price). Wider spreads often mean you're paying more than you realize to enter or exit a position.

   Revolut, like most platforms, doesn't explicitly highlight these costs. But when you trade in smaller, less liquid markets, the spreads can be substantial, quietly cutting into your profits.

Maximizing Your Gains: How to Reduce Trading Fees on Revolut

Now that you know the full scope of Revolut’s fees, here are some practical tips to minimize them:

1. Plan Ahead for Free Trades: If you know you’ll be making several trades, it’s wise to plan and prioritize them around your free trades. You can also consider upgrading to a higher plan if you trade frequently, but make sure the subscription cost is justified by the number of free trades and other benefits you’ll receive.

2. Trade on Weekdays to Avoid FX and Crypto Spread Fees: If you're on a premium or metal plan, make sure to trade during weekdays to avoid the FX fees. Similarly, for cryptocurrency, keep an eye on market trends to avoid trading during high volatility, as this can widen spreads.

3. Use Limit Orders: To mitigate losses from wide bid-ask spreads, use limit orders rather than market orders. A limit order lets you set the price at which you’re willing to buy or sell, so you don’t get hit by unfavorable market prices.

4. Diversify Across Platforms: Revolut’s ease of use makes it tempting to rely on it entirely for trading. However, it may be beneficial to diversify your trading activities across platforms to leverage lower fees on other exchanges or services, especially for international and cryptocurrency trades.

5. Stay Updated on Fee Changes: Revolut periodically updates its fee structures and policies, so it’s important to check their official page and notifications for any changes that might impact your trading costs.

Conclusion:

Revolut provides a simple and accessible entry point for beginner traders, but understanding the hidden fees and costs is crucial for any serious investor. While the zero-commission trades are appealing, factors like FX fees, cryptocurrency spreads, and subscription tiers can significantly impact your overall profits. By planning your trades strategically, avoiding unnecessary fees, and staying updated on changes, you can optimize your trading experience with Revolut and potentially increase your returns.