Revolut Cryptocurrency Fees: What You Need to Know

Understanding Revolut's Cryptocurrency Fee Structure

Revolut offers a simple and user-friendly interface for cryptocurrency trading, but this convenience comes at a cost. Revolut's fee structure can be categorized into several types: transaction fees, spread, subscription plans, and additional costs related to certain services. Let's break these down:

1. Transaction Fees

When you buy or sell cryptocurrency through Revolut, you're subject to a transaction fee. This fee varies depending on the subscription plan you're on:

• Standard and Plus Plans: Users on the free Standard plan or the Plus plan are charged a 2.5% transaction fee for every crypto trade.
• Premium Plan: Premium users benefit from a reduced transaction fee of 1.5%.
• Metal Plan: Metal plan users enjoy the lowest transaction fee at 1%.

These fees are relatively straightforward and are automatically deducted from the transaction amount.

2. Spread

Beyond the transaction fees, Revolut also charges a spread on cryptocurrency transactions. The spread is the difference between the buy and sell price of a cryptocurrency, and this is where Revolut makes a significant portion of its revenue from crypto trading.

• Average Spread: Revolut's spread typically ranges between 1% to 2% on each transaction, but this can vary depending on market conditions and the specific cryptocurrency being traded. The spread is not explicitly listed, making it a hidden cost for users.

3. Subscription Plans

Revolut offers several subscription plans (Standard, Plus, Premium, and Metal), each with different benefits, including lower crypto transaction fees. However, it's important to note that the cost of the subscription itself is an additional expense that users should consider when evaluating the overall cost of trading cryptocurrencies on Revolut.

• Monthly Fees:
  • Standard Plan: Free
  • Plus Plan: £2.99/month
  • Premium Plan: £6.99/month
  • Metal Plan: £12.99/month

These fees add up over time and can impact the profitability of frequent crypto traders.

4. Other Costs

While the primary costs are the transaction fee and spread, there are other potential costs to be aware of:

• Currency Conversion Fee: If you're trading in a currency different from your account base currency, Revolut may charge a currency conversion fee. This fee can be up to 0.5% depending on the day and the plan you are on.
• Withdrawal Fees: Withdrawing funds from your Revolut account to an external bank account may incur additional charges, especially for non-revolut currencies.

Comparison with Other Platforms

To understand whether Revolut's fees are competitive, it's essential to compare them with other popular cryptocurrency platforms such as Coinbase, Binance, and Kraken.

1. Coinbase

• Transaction Fee: Ranges between 1.49% to 3.99% depending on the payment method.
• Spread: Typically around 0.5% on buy and sell transactions.
• Subscription: No subscription fees.

2. Binance

• Transaction Fee: Starts at 0.1% per trade and can be reduced further with BNB (Binance Coin).
• Spread: Minimal spread, often close to 0.1%.
• Subscription: No subscription fees.

3. Kraken

• Transaction Fee: Ranges from 0.16% to 0.26% depending on the trade volume.
• Spread: Generally less than 0.5%.
• Subscription: No subscription fees.

Key Takeaways

• Revolut's fees are higher compared to dedicated cryptocurrency exchanges, particularly when it comes to transaction fees and spread.
• Subscription plans might offer reduced fees, but the cost of the subscription itself should be factored into your overall trading costs.
• Convenience vs. Cost: Revolut's integration with other banking features makes it a convenient option for users who want to manage all their financial activities in one place, but this convenience comes at a higher cost compared to other platforms.

Tips for Minimizing Costs

• Choose the Right Plan: If you’re a frequent trader, consider upgrading to a Premium or Metal plan to benefit from lower transaction fees.
• Trade Strategically: Be aware of the spreads and try to trade when market conditions are favorable to minimize the impact of the spread.
• Avoid Currency Conversion: Whenever possible, trade in your account’s base currency to avoid additional conversion fees.

Revolut provides a seamless and integrated platform for cryptocurrency trading, but it's crucial to be aware of the associated costs. By understanding the fee structure and comparing it with other platforms, users can make more informed decisions and potentially save on trading costs.