Revolut is a financial technology company from the United Kingdom founded in 2015 that provides banking services. In 2019, they released a feature within their app called Revolut Trading. Using this feature, you can trade financial instruments such as stocks, cryptocurrencies, and commodities.
One popular financial instrument among investors who want to diversify their investments is the ETF (exchange-traded fund). We can define the instrument as a security that tracks a specific asset or a group of assets. It is traded in stock exchanges, similar to stocks, and it can represent a group of securities or commodities that often share similarities. In this article, you will find out if you can trade ETFs in Revolut and alternatives to trading these instruments.
Can you trade ETFs on Revolut?
Currently, you cannot trade ETFs on Revolut. In the Revolut app, you can invest in more than 1000 stocks traded on US exchanges, many different cryptocurrencies, and two types of commodities: gold and silver. The company has plans to offer new financial instruments on its brokerage platform. These instruments include ETFs and other instruments traded in European, the United Kingdom, and Australian markets.
We must highlight that if Revolut decides to provide US-based ETFs, they will probably not be available to EU citizens. This is due to a European Regulation that forces ETFs traded in the European Union to fulfil requirements, which they generally do not. Considering that they explicitly plan to provide instruments traded in EU exchanges, they will likely include EU-authorized ETFs.
Note that products offered by Revolut vary according to region. If you live in the US, you may have access to more than 200 ETFs in Revolut, as some online news articles state. There are also a few reports on Reddit forums made by US clients who can see ETFs in their investment platforms. However, there is no indication online from Revolut that they allow investors from the US to trade ETFs in the app. Besides, there was no official announcement for that purpose, only the news articles from different sources.
We tried to contact the platform, but they answered that they could not tell us if investors could trade ETFs. Since the company does not have a MiFID investment license, they are “no longer able to advertise or promote the trading service within the EU”. The company also mentioned that they are currently getting this investment license, which will allow them to proceed with their expansion plans within the EU.
If you do not want to wait for Revolut to offer ETFs, do not worry. There are plenty of alternatives for trading the fund, and we can help you choose by listing a few of them.
Best Revolut Alternatives for trading ETFs
To help us answer this question, we focused on low-cost brokers, which are available in most countries in Europe. Given that, here are our suggestions:
Commission-free stock and ETF trading. You can also copy other traders/investors. Slick, modern, and easy for anyone to use. It is trusted by over 25 million clients worldwide.
Disclaimer: 67% of retail CFD accounts lose money.
Founded in 1978, IBKR is one of the world’s most trustworthy brokers. It offers an enormous range of financial products (stocks, ETFs, Options,…), and low currency conversion fees (FX fees).
💡 Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks and ETFs, ideal for novice investors.
Broker that offers ETFs in many European countries (Portugal, Italy, Poland, Slovakia, Czech Republic, France, Spain, Romania and Germany). It also allows you to invest in stocks, CFDs, cryptocurrencies, and forex with low fees.
Disclaimer: 79% of retail CFD accounts lose money.
Recent commission-free broker with no currency conversion fees. Besides, you have access to “curated investing” (similar to social trading).
Disclaimer: 56.65% of retail CFD accounts lose money.
One of the leading online brokers in Europe due to its low-cost structure. It offers commission-free stock and ETF trading and a wide product portfolio.
Disclaimer: Investing involves risk of loss.
Top tier regulators supervise all the companies mentioned here, like the UK’s Financial Conduct Authority (FCA) and Cyprus Securities and Exchange Commission (CySEC).
eToro at a glance
Founded in 2006, eToro is a well-known worldwide fintech startup and the leader in the social trading field (follow other people’s trades), with over 25 million users worldwide. You can also invest in other products such as CFDs, ETFs, stocks, commodities, Forex, and cryptocurrencies through their platform, which is intuitive and simple to use, making it a good choice for beginners. Plus, they started offering commission-free stock and ETF trading in Europe (not all ETFs are commission-free).
Opening an account and depositing is easy, and you can even try it out with virtual money. On the downside, spreads can be high for some products. The only currency accepted is the USD, which means that you’ll be charged currency conversion fees upon deposit and withdrawal if you deposit in another currency.
Want to know more about eToro? Check our eToro Review.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2# Interactive Brokers
Interactive Brokers at a glance
Founded in 1978 and publicly listed in NASDAQ (ticker: IBKR), Interactive Brokers is a global online broker which surpassed major financial crises, showing resilience and a rigorous risk management process.
Interactive Brokers offers an advanced investment platform that includes a wide range of products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from 150 markets, solid trade execution (IB SmartRouting), and a set of technical and fundamental tools to help you in your investment decisions.
Beginners and intermediate investors have educational tools to explore, but the learning curve will be steep. That´s why we mainly endorse it to more advanced traders. Besides, the customer service gives crystal clear answers to your doubts, so there is no need to go back and forth.
On the downside, Interactive Brokers’ fee structure is quite complex, the registration process is lengthy but fully online, and the broker doesn’t offer commission-free trading. However, when considering FX fees, narrower spreads, and the stock loan program, Interactive Brokers’ clients still get significant savings compared to most brokers.
Interactive Brokers also launched IBKR GlobalTrader, a modern mobile trading app to trade Stocks and ETFs, ideal for beginner investors. Some of the features of IBKR GlobalTrader include automatic currency conversions, fractional shares, demo account, and more.
Want to know more about Interactive Brokers? Check our Interactive Brokers Review.
XTB at a glance
Founded in 2002, XTB presents itself as a market player with extensive worldwide experience, regulated by the Financial Conduct Authority (FCA) and listed on the Warsaw Stock Exchange. The platform offers 0% commissions on stocks. However, its software is more oriented to CFDs and forex trading with competitive costs.
XTB also offers other financial products such as commodities, cryptocurrencies and ETFs in the following European countries: Portugal, Italy, Poland, Slovakia, Czech Republic, France, Spain, Romania and Germany. XTB charges high commissions on CFDs of cryptocurrencies but low costs for Forex. Besides, you will face an inactivity fee of €10/month after one year of non-trading and if you have not made any deposit in the last 90 days. Opening an account and transferring money is a quick and hassle-free process (demo account available).
Want to know more about XTB? Check our XTB Review.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investors accounts lose money when trading CFDs with this broker. It is important to understand how CFDs work and the risks involved in trading, like losing all the invested capital.
Nextmarkets at a glance
Founded in 2014, Nextmarkets is an online broker well-tailored for those with a basic understanding of the financial markets. It has a very intuitive and hassle-free mobile app. You can invest in financial products such as shares, ETFs, and CFDs on shares, ETFs, indices, forex, bonds, cryptocurrencies, and commodities.
In addition to the “Do-it-yourself” segment, Nextmarkets sets itself apart from its competitors because it offers “curated investing”. You have probably heard about social trading, where you follow other peoples’ trades. Nextmarkets wants to take the idea of social trading further by allowing you to benefit from the experience of proven experts (called “coaches”) and stock market professionals.
The fee structure is also unique: you only pay spreads. So, there are no fees on deposit, withdrawal, inactivity, currency conversion fees, and even no overnight fees in CFDs (something not usual in most brokers). On the downside, the web platform is quite “buggy”, you have no educational materials, and there is a €1 commission for orders below €250.
Nextmarkets Trading Ltd, the legal name of Nextmarkets, is registered in Malta and, consequently, authorized and regulated by the Malta Financial Services Authority (MFSA). You are protected up to a maximum of €20,000 on your money and assets.
If you want to learn more, check our Nextmarkets Review.
DEGIRO at a glance
Founded in 2013, Degiro is a low-cost brokerage firm that has become very popular due to its low rates! With over 2 million users, the innovative platform has become widely known for its “do-it-yourself” philosophy in the sense that you have everything at your disposal to start investing on your own. It offers a wide range of financial assets to trade, including stocks, ETFs, bonds, options, futures contracts, warrants, investment funds, and some leveraged products (not quite the same as CFDs. More info here).
For instance, you can trade some stocks and ETFs for free (a €0.50 flat handling fee – external costs – still applies). You also have a list of 200 ETFs where you may trade once a month completely free with no minimum amount required. The web trading platform is basic, but it is efficient and straightforward to use. In a matter of minutes, you get used to it. The same applies to its mobile app. On the downside, there is an absence of any significant fundamental research, a €2.50 connectivity fee applies and pricing alerts are missing.
Regarding security, Degiro is the Dutch branch of flatexDEGIRO Bank AG (a German regulated bank). In the unlikely event that the segregated assets cannot be returned to clients, Degiro falls under the German Investor Compensation Scheme, which compensates any losses from non-returned assets up to 90% (with a maximum of €20,000), so do bear this in mind if you are planning to invest much larger volumes. Furthermore, any money deposited on a DEGIRO Cash Account with flatexDEGIRO Bank AG will be guaranteed up to an amount of €100,000 under the German Deposit Guarantee Scheme.
Still any doubts? Go through our Degiro Review!
What to look for in an online broker to trade ETFs?
Now that you have a few alternatives to trading ETFs, we can help you by listing a few factors you should consider when choosing the broker you will trade with. We can list a few of these factors that can help you reach a decision:
- Currency conversion fees: if you want to trade ETFs, brokers may charge small amounts to convert different currencies to dollars. You can consider this when choosing the broker to pursue your investments, as it will affect the price paid for the ETF and your overall P%L.
- Commissions: similar to the point above, brokers may also charge commissions for trading ETFs, which is also something to be considered when trading the instrument.
- Range of ETFs offered: the variety of ETFs offered by the broker may also influence your decision. If you do not have a specific fund that you want to invest in, it could be better to have more options.
- ETF screener: this may be a handy tool for you and something to consider when choosing your broker. You can use the screener to compare and filter different funds according to your desired criteria, narrowing down the available funds according to your preference.
The bottom line
ETFs are popular financial instruments traded in brokerage firms and exchanges like stocks. But compared to stocks, they offer higher diversification and, therefore, less risk. Investing in ETFs is an interesting alternative for those who want to invest in a specific field or sector but do not have the time, money, or knowledge to diversify their portfolio.
You may not be allowed to trade ETFs in Revolut, but there is no reason to worry: there are many other options for you. You need to set your objectives and goals and pick the broker that better suits those needs.
Note that this article is for informational purposes only and should not be considered financial advice. We hope we can help you with your choice, and we wish you the best of luck with your investments!