Commission-free stock trading is now live for Metal customers 📊
I have to say - that is the feature to which I was looking for more than for ApplePay. And finally it is added to Revolut (for now Metal users only - but since I am a Metal user I can test it: - soon will write comparison of best trading apps incl. Revolut).
Unfortunately, for now we only have US shares, personally I prefer UK ones since I know the market better and .. well... working hours also are the reason :).
Coming back to subject - investing in the stock market has notoriously been expensive, complicated and inaccessible for a lot of people. Revolut, about a year ago, announced plans to bring commission-free stock trading to the UK and Europe. Starting today, that trading is now live for Revolut Metal customers, who will be able to make up to 100 commission-free stock trades per month, supported by real-time price and performance data.
In the coming weeks, Revolut will begin to roll this service out to Standard and Premium customers too. Until then, here’s an overview of what to expect from new trading service (source: Revolut's blog).
How trading works 🤳
Revolut Metal customers can make up to 100 commission-free trades per month in over 300 U.S. listed stocks on the New York Stock Exchange and NASDAQ with real-time prices and stock performance data. Any trades thereafter will be charged at £1 per trade. Trades with Revolut are instant, with a 0.01 percent annual custody fee and no account minimums.
Important note: The above commission and annual custody fees will be waived during the beta period. These will come into effect later, until then, trades for eligible customers will be free.
One of the things which Revolut is most proud of with their new trading feature, is the ability for customers to buy fractional shares. This is central to the idea of making trading and investing accessible to more people.
Often, investors are required to buy a minimum of one share in a company. That’s not a problem if the cost of a single share is low (pence/cents each, for example), but shares in many popular companies such as Amazon, Google, or Microsoft, can cost a thousand dollars each, or more. With fractional shares, you can buy a fraction of a single share for as little as $1USD, which means you’ll still own a piece of the company, albeit a much smaller one.
Instant market orders
In a nutshell, market orders allow you to buy a share, or a fraction of a share, at its current market price. For example, if the asking price for a single share in General Mills is $1.50 (hypothetically) when your order arrives at the market, you’ll pay $1.50 for that share.
$1,000 maximum per order
To begin with, Revolut will be placing a limit on orders of $1,000 worth of shares. This means, for example, that you could place two orders for the same shares of $1,000 each, but you could not place a single order worth $2,000.
As Revolut is only offering U.S stocks right now, note that trading will only be available during the hours of 9:30am - 16:00pm EST.
What does commission-free mean? 🤑
It isn’t just the price of shares which makes investing difficult for many people, it's fees, too. Commissions for individual trades can be considerable, quickly adding up to make investing a costly endeavour.
Revolut Metal customers will be able to make up to 100 trades each month, without paying any commissions for those individual trades. Any trades in excess of this would incur our standard £1 commission fee per trade.
Premium customers will be able to make eight free trades per month. Any trades thereafter will be charged at £1 per trade.
Standard customers will be able to make three free trades per month. Any trades thereafter will be charged at £1 per trade.
Both of these plans will be subject to the same 0.01 percent annual custody fee as applies to Metal customers (for beta test - free, as mentioned above).
Making trading inclusive 🤝
As we can read on Revolut's website:
"Over the last four years, we have worked passionately to build an inclusive product that is currently used by over six million people. Investing in the stock market has been closed off to many people for far too long, due to fees, high share prices, and complicated platforms. This has led to real problems for people as they search for effective ways to get the most out of their money".
"That is why we are proud to say that customers will be able to buy and sell fractional shares through Revolut, with as little as $1 (subject to being accepted as a Revolut customer, via our usual sign-up process)".
"This means that if you don’t have enough money to buy an entire share from a company like Apple or Tesla, you’ll be able to buy as little as $1 worth of shares instead".
Trading eligibility 🧐
It’s important to note that in order to trade with Revolut, you must have a verified email address and, depending on what kind of photo ID you signed up to Revolut with, the company may need to ask you for further photo ID in order to use our trading product.
Do it all from the Revolut app 📲
Another advantage of trading with Revolut is the ability to fund your trading account in multiple currencies, directly from the app. Not only does this make trading fast and convenient, you’ll also benefit from the real interbank exchange rate.
Trading is now open to more people 🎉
Revolut states clear - that they are targeting regular people, beginners who maybe struggle to start trading, and now - it is possible and much easier :)
"We believe in fairness and transparency, and that more people should have the opportunity to invest in stocks. As we develop our trading feature, we plan to open it up to more people outside of Europe, to bring in products such as ETFs, and introduce UK and European stocks".
For more details on the ins and outs of trading with Revolut, visit dedicated Trading FAQ.
Capital at risk
Revolut nor FTHours does not provide investment advice and individual investors should make their own decisions or seek independent advice. The value of investments can go up as well as down and you may receive less than your original investment. Currency rate fluctuations can adversely impact the overall returns on your original investment. Learn more by reading Revolut's Trading FAQ.