Thinking about entering the world of stock trading but found the process intimidating? Trading stocks on Revolut makes it easier than ever. With its user-friendly interface and accessible platform, Revolut offers a seamless experience for both beginners and seasoned traders.
In this article, we’ll guide you through the basics of getting started with stock trading on Revolut, from setting up your account to making your first trade. We’ll cover essential topics like understanding market orders, exploring the app’s features, and tips for managing your investments.
Whether you’re looking to diversify your portfolio or capitalize on market opportunities, our comprehensive guide will equip you with the knowledge and confidence to navigate the stock market using Revolut’s innovative trading tools.
Article summary
How to start trading stocks on Revolut
Download the Revolut App
Don’t have Revolut yet? Downloading the app is the first step to your stock trading journey. You can find it easily in your app store (iOS or Android). Once downloaded, you’ll need to sign up.
This typically involves providing your basic information, setting a secure password, and linking your phone number for verification. The signup process might also involve some identity verification steps to comply with regulations. These usually involve submitting clear photos of your government-issued ID and taking a selfie to confirm it’s really you.
Completing the signup process activates your Revolut account and unlocks all its features, including stock trading. Remember, this entire process can be done conveniently from your smartphone.
Start earning 60% a year with automated trading Free Sign UpVerify your Identity
Revolut takes security seriously, and to comply with financial regulations, they require identity verification before you can start trading. This is a quick and straightforward process you can complete within the app.
Typically, you’ll need to submit a clear photo of your government-issued ID, like a passport or driver’s license. Make sure the photo captures all details clearly and isn’t blurry. In addition, they might request a selfie to ensure the person opening the account matches the ID. Simply hold your phone securely and take a clear selfie within the app’s instructions.
Once Revolut verifies your identity, your account will be active, allowing you to explore all its features, including stock trading. This verification step helps protect both you and Revolut from potential fraud.
Choose a Plan (Optional)
Revolut offers different plans to cater to various user needs. The good news is that stock trading is available on their free standard plan! This plan is perfect for beginners or those who want to test the waters of stock investing without any upfront commitment.
However, Revolut also offers premium plans with additional features that might be enticing depending on your lifestyle. These premium plans (often with monthly fees) can include perks like travel insurance for your adventures, disposable virtual cards for secure online shopping, airport lounge access for frequent flyers, and even cashback rewards on everyday purchases. \
There’s also a priority customer support option for those who value quicker assistance. While upgrading is entirely optional for stock trading, consider exploring these features if they align with your broader financial goals and preferences. Remember, you can always start with the free plan and upgrade later if you find yourself needing the extra features.
Fund your Account
Revolut makes funding your account a breeze. You can easily transfer funds from a linked bank account. Simply connect your trusted bank account within the app, and you’ll be able to initiate transfers securely.
Alternatively, you can use a debit card for a more immediate way to add funds. Remember, the amount you transfer will be used to purchase stocks, so consider how much you’d like to allocate to your initial investment. Revolut allows for some flexibility, letting you buy fractional shares, so you don’t necessarily need a huge sum to get started. Once the transfer is complete, the funds will reflect in your Revolut account balance, ready to be deployed for your stock picks!
Navigate to the Stocks Section
Navigating to the “Stocks” section within the Revolut app is a straightforward process, essential for starting your stock trading journey. Once you’ve opened the app and logged into your account, look for the “Stocks” section. This is typically found under the “Wealth” or “Invest” tabs, depending on the app’s layout at the time. The “Stocks” section is your gateway to exploring a wide range of available stocks.
Here, you can browse through various stocks, view their performance charts, and access detailed information about each company. Use the search bar at the top of the screen to quickly find specific stocks by name or ticker symbol. Revolut provides useful filters and sorting options, allowing you to refine your search based on different criteria, such as industry, market cap, or recent performance.
As you explore, you’ll see essential data like current stock prices, historical price trends, and key financial metrics. This information helps you make informed decisions about which stocks to invest in. Whether you’re looking for tech giants, emerging startups, or industry leaders, the “Stocks” section on Revolut is designed to make your trading experience smooth and efficient.
Search and Select a Stock
To search and select a stock on Revolut, start by using the search bar within the “Stocks” section to locate the stock you want to invest in. Enter the company name or ticker symbol for a quick lookup. Once you find the stock, click on it to access detailed information.
When evaluating potential investments, consider several key factors. Look at the company’s performance, including recent earnings reports, revenue growth, and profitability. These metrics provide insights into the company’s financial health and potential for future growth. Additionally, assess the industry outlook to understand broader market trends that could impact the stock’s performance.
Your risk tolerance is another crucial aspect to consider. If you prefer stable investments, focus on established companies with a history of steady performance. For those willing to take on more risk for the chance of higher returns, emerging companies or industries might be more appealing.
By carefully considering these factors and using the tools provided by Revolut, you can make informed decisions that align with your investment goals and risk appetite. This thorough approach ensures you’re selecting stocks that best fit your strategy and financial objectives.
Place your Order
Now that you’ve chosen a stock you believe in, it’s time to place your order! Revolut makes the buying process user-friendly. Once you’ve found your desired stock through the search bar, you’ll be presented with details like current price and performance charts.
Here’s where Revolut shines for beginners – they allow you to invest in fractional shares. This means you don’t need a hefty sum to buy a whole share of a potentially expensive stock. Instead, you can specify the exact amount you want to invest, and Revolut will automatically calculate the corresponding fractional share you’ll acquire.
For example, if a stock is trading at $100 per share but you only want to invest $20, Revolut will let you purchase a fraction (like 0.2 of a share) proportional to your investment amount. Finally, once you’ve determined your desired investment amount, simply hit the “Buy” button to execute the trade.
Revolut will handle the transaction securely, and your fractional share will be credited to your investment portfolio within the app. Remember, buying stocks involves inherent risk, so always do your research and invest responsibly.
Bonus Tip:
These resources are designed to help both beginners and experienced traders understand the fundamentals of stock trading and risk management. By exploring these materials, you can gain valuable insights into how the stock market works, different types of stocks, and the principles of investing.
Revolut’s educational content covers essential topics like reading stock charts, understanding market orders, and the importance of diversification. Additionally, it provides strategies for managing risk, such as setting stop-loss orders and knowing when to take profits.
Familiarizing yourself with these basics can significantly improve your trading decisions and help you avoid common pitfalls. By building a solid foundation of knowledge, you’ll be better prepared to navigate the complexities of the stock market and make informed investment choices. This preparation is crucial for achieving long-term success in your trading endeavors on Revolut.
How much does it cost to trade on Revolut?
The cost of trading on Revolut varies depending on the plan you choose. For users on the standard plan, Revolut offers three free trades per month; after that, each trade incurs a fee of £1. For those on the premium or metal plans, a higher number of free trades is included—eight for premium and unlimited for metal—providing more flexibility for active traders.
In addition to per-trade fees, Revolut charges a 0.12% annual custody fee, calculated daily based on the value of your portfolio. This fee covers the costs of holding and managing your assets. It’s also important to note that there may be additional fees for currency conversion if you’re trading stocks listed in a currency different from your account’s base currency.
Can you do day trading on Revolut?
Yes, you can do day trading on Revolut, but there are some important considerations. Revolut’s platform allows for the buying and selling of stocks within the same day, making it possible for users to engage in day trading. However, it’s crucial to be aware of the limits and costs associated with frequent trading.
Users on the standard plan have three free trades per month, with each additional trade costing £1. Premium and metal plan users get more free trades—eight and unlimited, respectively. Additionally, a 0.12% annual custody fee applies, calculated daily on your portfolio’s value.
Day trading requires careful monitoring of market movements and swift decision-making. While Revolut provides the tools for day trading, it’s important to understand the associated risks, fees, and the need for a solid trading strategy to be successful.
What happens to my stocks if Revolut goes bust?
If Revolut were to go bust, your stocks would generally remain safe due to regulatory protections and the structure of how assets are held. Revolut partners with third-party custodians to hold your stocks, meaning your assets are segregated from Revolut’s own finances. This segregation ensures that, in the event of Revolut’s insolvency, your stocks are not considered part of its assets and remain protected.
Furthermore, Revolut operates under regulatory frameworks that mandate customer protection measures. In many regions, financial authorities require firms to have safeguards in place for client assets. You would typically retain ownership of your stocks, and they could be transferred to another brokerage or custodian.
However, it’s essential to stay informed about your rights and protections under the specific regulatory environment of your country to fully understand the implications of such an event.
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Ebiere Watchman is a prolific writer specialized in web 3.0 and finance. Ebiere’s experience includes research projects, sales copywriting, and storytelling. She prides herself in crafting impeccable content to drive mass adoption in cryptocurrency.
