How to Buy ETFs with Revolut

Can I Buy ETFs with Revolut?

Yes, you can buy Exchange-Traded Funds (ETFs) with Revolut. The platform offers various ETF options, including those tracking major indexes like the S&P 500 and NASDAQ, allowing for a diverse investment portfolio.

However, be mindful of Revolut's fees. The platform charges a base fee of 0.25% and a spread that often exceeds 1.5%. These fees are higher than many competitors and can significantly affect your overall returns. It's important to carefully consider these costs when using Revolut for ETF investments.

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How to Buy ETFs with a Revolut Alternative

If you use Revolut to invest in ETFs, it's essential to be aware of its fees and user interface, which may not suit all investors. eToro is a solid alternative for UK and EU users, known for its user-friendly interface, easy deposit process, and strong regulatory compliance. eToro offers over 4500 tradable assets, including ETFs tracking the S&P 500, catering to diverse investment preferences.

To switch to eToro, follow these steps:

1. Account Setup: Visit eToro's website, register for an account, and complete the identity verification.
2. Funding: Navigate to 'Deposit Funds,' select your preferred currency (USD, GBP, or EUR), and choose a payment method, such as Bank Transfer.
3. Transfer Execution: Complete the transfer from your Revolut bank account to your eToro account.
4. Start Investing: Once funded, you can begin investing in ETFs, including those tracking the S&P 500, using eToro’s efficient platform.

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Revolut ETF Fees

Revolut is known for its relatively high ETF investment fees. These fees depend on the user's product plan. For instance, a monthly subscription can cost up to €11. Premium and Metal plan users face a significant fee of 1.49%, which is high even for top-tier plans. Standard and Plus users are charged a 3% transaction fee.

In comparison, eToro offers a more cost-effective option. eToro does not charge trading fees and has a variable spread, usually around 1%, across its wide range of assets. This makes eToro a more attractive choice for investors looking to reduce costs.

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Is Revolut Good for ETF Investing?

For UK and European investors, it's crucial to consider specific factors before using Revolut for ETF investments. Revolut's high transaction fees and monthly subscription costs can make it a less attractive option. Moreover, the range of ETFs available on Revolut might not be as broad as other platforms.

Despite being regulated by the Financial Conduct Authority (FCA), Revolut's fee structure can significantly impact your returns. Therefore, evaluate these aspects carefully to determine if Revolut aligns with your investment goals and strategies.

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Bottom Line

While Revolut offers the ability to invest in ETFs, its high fees and limited ETF selection may not make it the best choice for all investors. Alternatives like eToro, which provide lower costs and a wider range of investment options, could be more suitable. Carefully assess the fee structures and features of each platform to ensure they align with your investment objectives and strategies.