8.6 C
New York
Wednesday, December 8, 2021
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

Nik Storonsky wants UK banking license by the start of 2022

Digital bank Revolut is a licensed bank in many countries but still not in the UK where the company is based.

Starling’s Anne Boden says banks must embrace hybrid working

Anne Boden, CEO of Starling Bank, worked in the office from dawn to dusk for most of her life.

Revolut is outpacing rivals in terms of app downloads in 2021

British digital bank Revolut has recorded a 37% increase in downloads of its Android app, new data shows.

The Great British Bounceback: research from Enterprise Nation and Starling Bank

Two-thirds of SME's are confident of increased turnover in 2022, Enterprise Nation and Starling Bank report in new research.