Fintech startup Revolut has introduced a new trading feature for premium users.
Customers who pay for Revolut’s Metal and Premium offerings can access gold through the app from Thursday. Users will be able to trade based on live market performance through a new “commodities” section that will appear when the app is updated.
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Revolut works with a gold services partner (London Bullion Market Association) so that the money you spend on gold exposure is backed by real gold held by this partner. That means you are not literally getting golden bricks. You can just invest money based on the price of gold.
Revolut’s own announcement: “First cryptocurrencies, then stocks, now precious metals. We’re excited to announce that customers on Premium and Metal plans can now access gold exposure directly in the Revolut app.
This new feature offers another way for you to diversify your portfolio, by taking advantage of a once-complicated product. Many people don’t even realise that it’s possible to exchange gold, but precious metals are traded as commodities every day, and just like stocks, the price goes up and down according to current global events.”
Gold is not regulated in the UK by the Financial Conduct Authority, nor is it safeguarded under e-money regulations
The startup has been building a financial hub and already lets you purchase cryptocurrencies and buy public shares. Gold is part of a new feature called Commodities.
There are multiple ways to invest in gold. You can purchase gold exposure directly at market price, set a limit price to auto-exchange gold when it reaches a certain price or get cashback in gold for Metal customers.
Related: Revolut seeking UK banking license because of Brexit
According to the company’s website, Revolut charges a 0.25% markup when you trade gold during the week and a 1% markup from Saturday at midnight to Monday at midnight U.K. time.
It’s worth noting that gold isn’t protected through the Financial Services Compensation Scheme in the U.K. “However, in the unlikely event of Revolut’s insolvency, all Precious Metals holdings will be sold and proceeds will be credited to your e-money account,” Revolut says. You’ll have to trust their word.
