Revolut launches zero-commission share trading in Australia

Revolut has launched commission-free trading of US stocks in Australia. From today, the global fintech’s 100,000 strong Australian customer base will be able to invest as little as US$1 in popular US companies, such as Amazon, Tesla and Netflix.

Aussie users will be able to buy and sell fractional shares, which are parts of shares, listed on the New York Stock Exchange (NYSE) and NASDAQ through the Revolut app.

“The barriers to investing in US stocks are quite high – so high brokerage and high foreign exchange fees, all the way down to the cost of the share itself,” Matt Baxby, CEO of Revolut Australia, told Canstar.

Tesla shares, for example, are currently trading above US$800.

“People investing in shares might find that too high a barrier to entry,” Mr Baxby said.

“So we let people invest for as little as a dollar and being able to own a fraction of a share means the entry cost is much lower. We find that a lot of our customers globally use our platform as a way of educating themselves and experimenting with share trading.”

Revolut, which is perhaps best known for its low-cost foreign exchange rates, will also offer AUD to USD conversions at the interbank exchange rate (or the ‘real’ exchange rate).

To mark the launch, Revolut is offering unlimited commission-free trades for the rest of the year to anyone who tries the feature by 30 June. Some terms and conditions apply.

What are some of the features of Revolut’s share trading platform?

Revolut’s stock trading feature includes real-time market data, stock charts, price alerts, market graphs and global market news within the app.

The in-app platform will offer a ‘social trading’ feature, where investors can share their portfolio and follow the investments of other Revolut investors.

“Customers can switch their profile to public and be followed by other investors, or they can choose to keep their profile private and still follow other public investors who are using our platform,” Mr Baxby said.

“It gives people insight into how other traders’ portfolios are constructed and goes into creating a community of people focused on building their wealth.”

Social trading can have its risks though and replicating another investor’s strategy does not guarantee the same return. Consider your own financial circumstances and do your own assessment before making any investment. Keep in mind too that past performance is not a reliable indicator of future performance.

Additionally, not all platforms offer fractional share trading in Australia, so be aware that you may run into difficulties transferring fractional shares if you decide to change providers.

What fees will Revolut charge for trading shares?

Revolut operates on a subscription-based model and offers three plans to customers: Standard, Premium and Metal. The Metal plan comes with a metal card made of 18 grams of reinforced steel. The Standard plan is free, the Premium plan costs $10.99 per month and the Metal plan costs $24.99 per month.

Revolut charges no commission fees and no foreign exchange fees, subject to plan limits. Customers on the Standard plan can get three commission-free trades per month, customers on the Premium plan can get eight and those on the Metal plan can access unlimited commission-free trades at the time of writing.

Revolut also charges a custody fee in USD of 0.01% or 1 basis point annually of the market value of the assets in your account, which is charged monthly. For further details, see Revolut’s fee disclosure document.

How does Revolut compare to other investment platforms?

Revolut offers access to zero-brokerage trading and exchanges at the interbank exchange rate. It also charges no foreign exchange fees and no deposit or withdrawal fees. Limits may apply depending on which plan you are on.

Here’s a closer look at how Revolut’s fees compare to other popular share trading apps CommSec, Stake, SelfWealth and Superhero, based on a $1,000 trade in US shares.

Cost comparison for popular share trading apps: $1,000 trade in US shares

← Scroll to view →

Source: Provider websites as at 23/02/2022. *Fees may apply if for trades or exchanges exceeding your plan limit.