Anyone using Revolut to trade shares?

Coil Kilcrea

Just wondering if anyone has used Revolut to trade shares and would be interested to learn how you find it or what approach you take?

garrettod

Hi,

No, but it's on my list of things to look into.

I've yet to put the time in, but at first glance, it looks like there are very limited markets available - perhaps that is just on the free version of Revolut?

adam88

Their prices are a rip off.

Coil Kilcrea

adam88 wrote: »

Their prices are a rip off.

Can you share more?

adam88

Coil Kilcrea wrote: »

Can you share more?

One share last week. Regular stock exchange was 40 approx. REVOLUT was 43. Massive spreads

Ush1

adam88 wrote: »

One share last week. Regular stock exchange was 40 approx. REVOLUT was 43. Massive spreads

Thanks for that, never noticed. I was delighted with the commission free trades.

adam88

Ush1 wrote: »

Thanks for that, never noticed. I was delighted with the commission free trades.

It’s like the post office doing commission free foreign exchange. They catch you anyway cause the exchange rates are so bad

Jim2007

adam88 wrote: »

One share last week. Regular stock exchange was 40 approx. REVOLUT was 43. Massive spreads

It is not a spread. It is simply that your order was directed to the market maker offering your broker the best commission for trade direction not the best price. The is how commission free trades work, it is well known and widely documented.

The price of your free trade is that the market maker gets to bid for your trade and no one is particularly worried about the price you get. In most cases arbitrage keeps the prices within reason and unless you are watching the order book you will not notice that you did not get the best price. But every so often there is a FU... and some clients get to see a bit of reality.

rebelArt2018

Guys,

Does anybody hold shares with them and received notification about transfer to UK authority?

thanks

Anatom

They sent an email a couple of weeks ago about moving to Lithuania, but nothing about any transfer to a UK authority. I am not a shareholder, but I am a customer.


On 31st December, 2020 the Brexit transition period with the EU is due to end, so we’re taking action to make sure our Irish customers are not affected when the UK leaves the EU.

In two months, we will be moving our European customers to the electronic money licence held by Revolut in Lithuania. This will ensure that your Revolut service will continue smoothly when the Brexit process is concluded. It means you’ll still be able to use all of the services and features that you love. You don’t need to do anything and we will contact you again when we have made the switch.

sean72

What’s the situation in relation to tax on shares. For example if I put in a 1000 and made 300 and decided to cash out (or whatever the term is). What is the tax hit and is it made at source when cashing out or is it something I’d have to do. I’m PAYE.

ArthurG

sean72 wrote: »

What’s the situation in relation to tax on shares. For example if I put in a 1000 and made 300 and decided to cash out (or whatever the term is). What is the tax hit and is it made at source when cashing out or is it something I’d have to do. I’m PAYE.

My knowledge of share dealing is limited to my employee share schemes, but in general (and please correct me experts if I’m wrong):

- you’re liable for capital gains if you exceed your annual threshold (profit) of approx €1,200 euro. You must settle this with revenue yourself. This is ‘off the top’ by the way. In other words you cannot deduct other charges (see below) and calculate CGT on the reduced amount.

- assuming this is a secondary source of income (and not a revenue approved scheme whereby you are not liable for PAYE), you’ll be obliged to pay tax at the relevant rate for you, USC and possibly PRSI. All of this must be self declared, there is no ‘deducted at source’ as far as I know.

DilD

I don't know anything about Revolut's system here but I imagine they are offering CFD's and not actually purchasing stocks?

Mickiemcfist

I would prefer Degiro but it's handy for fractional shares for people starting out. I.e. Amazon stock is 3,300 but you can buy $100 worth of an amazon stock (c.1/33)

Mickiemcfist

DilD wrote: »

I don't know anything about Revolut's system here but I imagine they are offering CFD's and not actually purchasing stocks?

No, it's share dealing

gadarnol

rebelArt2018 wrote: »

Guys,

Does anybody hold shares with them and received notification about transfer to UK authority?

thanks

Yes. I started to look at degiro a while back but I haven’t finished setting it up for various reasons. I used Revolut for experiment and got the notice too. I thought I’d hold out to see what progress they made getting EU license they mentioned but if I don’t hear about it by December I’ll close it down for now. I’ve never had anything to do with shares apart from the Mary O’Rourke Telecom debacle so it’s been interesting getting to know a little. The post here about the price you get when you buy is a good reminder that the middle men rarely lose!

sean72

sean72 wrote: »

What’s the situation in relation to tax on shares. For example if I put in a 1000 and made 300 and decided to cash out (or whatever the term is). What is the tax hit and is it made at source when cashing out or is it something I’d have to do. I’m PAYE.

Same as any shares. You need to pay CGT on profit, currently 33%.

There's an exemption of 1270 a year.

tamova

I use Revolut trading and have around 15k euro in there (investing most of my pay cheque every month since May). I have DeGiro but haven't used it and that's solely because I'm 1) lazy and 2) don't see the need for anything more advanced than Revolut for long-term trading. It doesn't bother me to buy at market value, as I'm holding these stocks for years. The only fees I pay with Revolut is the currency exchange, which isn't a massive amount.

I am a little concerned about any tax implications for myself with them not having an EU entity yet.. Can anyone advise on this?

allybhoy

Also using Revolut started back in May or so and have been contributing monthly, Was going to go with De-Giro but seeing as though i already have metal card and there are no fees it didnt make much sense. Previously they only had Market Orders, however within the last two months or so they have introduced Limit and Stop Orders which is a handy function. You also get dividends automatically and they just get added to your USD account. The main issues i have with the app is you can only trade stocks on the NASDAQ and also it is over user friendly IMO and is rubbish for tracking prices and profits, i use other apps \ spreadsheets to record my trades and calculate gains and losses. If like me though you are a casual user and just using it infrequently it is more than sufficient.

namloc1980

tamova wrote: »

I use Revolut trading and have around 15k euro in there (investing most of my pay cheque every month since May). I have DeGiro but haven't used it and that's solely because I'm 1) lazy and 2) don't see the need for anything more advanced than Revolut for long-term trading. It doesn't bother me to buy at market value, as I'm holding these stocks for years. The only fees I pay with Revolut is the currency exchange, which isn't a massive amount.

I am a little concerned about any tax implications for myself with them not having an EU entity yet.. Can anyone advise on this?

I'd be very mindful with such a large amount with Revolut as you have that they are currently not authorised in the EU from the 1st January next due to Brexit and you will have no access to protection from any investor compensation schemes. I closed out my positions with them over the last couple of months.

https://www.revolut.com/en-IE/help/wealth/stocks/trading-and-brexit/how-will-brexit-affect-trading-with-revolut

How will Brexit affect trading with Revolut?

As you know, the UK will formally leave the EU after 31 December 2020. As a result, our trading company, Revolut Trading Limited (RTL) will no longer be able to passport its services across the EEA, from 1 January 2021, as an appointed representative of its UK principal firm which is authorised and regulated by the Financial Conduct Authority.

This means that RTL will no longer be authorised on behalf of its principal firm to advertise, promote or otherwise provide the trading service to you under EU law after this date. You can, however, choose to continue trading with RTL - see how to below.

From early November you can download the latest version of the Revolut App and confirm via the Revolut App that from 1 January 2021:

- You are trading with RTL at your own initiative
- You are trading with RTL on the basis of an ongoing relationship
- You have been made aware that the Trading service is not provided by an investment entity authorised in the EU
- You are aware that you do not have the benefit of any EU regulatory protections or investor compensation schemes by Trading with RTL.

tamova

namloc1980 wrote: »

I'd be very mindful with such a large amount with Revolut as you have that they are currently not authorised in the EU from the 1st January next due to Brexit and you will have no access to protection from any investor compensation schemes. I closed out my positions with them over the last couple of months.

https://www.revolut.com/en-IE/help/wealth/stocks/trading-and-brexit/how-will-brexit-affect-trading-with-revolut

Thanks for this. Do you think this is actually of concern though? Surely the governing rules in UK would protect me?

namloc1980

tamova wrote: »

Thanks for this. Do you think this is actually of concern though? Surely the governing rules in UK would protect me?

UK will be outside the common market and outside the EU financial services passporting rules on the 1st January. Revolut does not have protection under the UK investor compensation scheme. If you want to check for yourself check out the UK Financial Services Compensation Scheme website and put in revolut in the search box. They aren't covered.

https://www.fscs.org.uk/check-your-money-is-protected/

Jim2007

tamova wrote: »

Thanks for this. Do you think this is actually of concern though? Surely the governing rules in UK would protect me?

Why? We've never had this situation in the past....


Beyond assumption, there is no evidence that a contract entered into outside the jurisdiction under passporting financial services will be covered by national law after the transition period ends.


If there is a large sum of money involved, I would not be very comfortable relying on such assumptions.

gadarnol

I cashed in my revolut shares a few days ago; I see today on the app that if you want continue trading you have to click on a UK governance acceptance button. Glad I got out for the moment. I'll wait for EU licence.

LeineGlas

Are fractional shares on Revolut liable for Stamp Duty, and how is it paid?