8.6 C
New York
Saturday, July 13, 2024
Home Challanger banks Revolut about to increase fees and cut number of free trades

Revolut about to increase fees and cut number of free trades

Revolut introduced additional fees on its free plan and trading on the Revolut platform will also become more expensive. 

From March, users will pay significantly higher fees for their investments and the number of trades they can make for free will decrease.

Read also: N26 introduces 100% digital account

If you are a Plus user and pay £2.99 per month, you will continue to receive three commission-free trades per month. If Premium user, paying £6.99 per month, you will receive five commission-free trades per month, but you previously received eight. And Metal users, who pay £12.99 per month, will continue to receive unlimited commission-free trading.

The custody fee will change from 0.01 percent of asset value per annum to 0.12 percent of asset value per annum.

“The changes are not that big, but obviously no one likes the increase of any kind of fees, so I know that some customers may be dissatisfied with these changes,” says Stefan Bogucki of Revolut.

Significant changes also apply to international money transfers. At the same time, Revolut assures that local bank transfers in domestic currencies, local and international transfers in euros to any country in the SEPA area, as well as transfers to other Revolut users (so-called peer-to-peer) anywhere in the world will remain free in the future.

Revolut’s introduction of new fees seems like a part of a bigger strategy to push users toward the paid accounts, as it also follows a broader trend of neobanks turning to charges as they struggle to survive. 

The CEO of Revolut Nik Storonsky claimed his company reached break-even in November, just a month after Starling’s Anne Boden announced the same.

According to the latest public figures, the London-based Revolut posted a loss of £ 106 million in 2019. The losses for Revolut came despite Revolut’s revenue jumping by 180% to £163 million. Revolut has also seen a huge surge of retail customers with the total number increasing from 3.5 million to 10 million in 2019. Current numbers show a total of 14 million Revolut customers.

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

Recent posts

NEW Revolut UK CEO to make Conference Debut at MoneyLIVE Summit

MoneyLIVE has today announced that Revolut’s newly appointed UK CEO will be making her conference debut at MoneyLIVE Summit 2024, which is...

2024’s Financial Innovators: A New Era of Banking Startups 

In the wake of the COVID-19 pandemic, our world witnessed an unprecedented shift towards digitalization. The banking industry, in particular, has been...

C-suite Banking and Payments Leaders From Across Europe Set to Meet at London’s MoneyLIVE Summit in March

On the 6-7 March 2024 MoneyLIVE Summit will return to London’s QEII Centre to unite over 1000 banking and payments leaders from...

The Evolution of Digital Wallets: A Shift from Physical Cards by 2030

By 2030, we can expect digital wallets to become the preferred payment instrument, offering a myriad of non-payment-related services for consumers.