8.6 C
New York
Wednesday, September 30, 2020
Home Challanger banks Revolut lets you purchase gold on Premium and Metal

Revolut lets you purchase gold on Premium and Metal

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.

Read also: UK’s most valuable fintech startup? Revolut!

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.


Avatar
Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

N26 names Dropbox’s Adrienne Gormley as its new COO

The German challenger N26 has introduced changes in the leadership team with two new C-Level hires.

Penta, the Berlin-based digital business bank

Penta provides banking for small and medium-sized enterprises (SMEs) and is headquartered in Berlin, with offices in Milan and Belgrade.

The Everly Summary (weekly TOP5 news)

Welcome to Everly.eu’s weekly summary. Let’s see the most important news we have covered during the last week in a TOP 5 list!

Robinhood managed to raise another $460m

The stock trading app Robinhood has added $460m to its Series G funding round closing a total of $660 million at an $11.7 billion valuation.