Hello, investor! This article will provide our review of the newly launched Revolut Robo-Advisor in the EEA.
At Robo-Advisor Finder, we follow over 80 Robo-advisors worldwide, of which more than 30 offer their services to European investors. That's a lot to check, right? In this article, we'll make it easier for you by reviewing Revoluts’ Robo-advisor feature.
Revolut's Robo-Advisor is designed for those who want to automate their investing without spending much time on research or managing portfolios.
The service offers a personalized investment experience by taking into account your risk tolerance and financial goals, making it suitable for both beginners and those with limited trading experience.
One of the standout features of Revolut's Robo-Advisor is its low minimum investment requirement of €100, making it easier for a wider audience to start investing. However, it charges an annual management fee of 0.75%, which is something potential users should consider.
Revolut, a financial super-app with over 35 million customers globally, is expanding its suite of services with this Robo-Advisor, aiming to simplify and enhance the investment process for its users.
That's Revolut's Robo-Advisor in a nutshell. If you want to find out what our research team has to say after carefully analyzing this new service, keep reading.
Our overall take on Revolut Robo-Advisor:
All in all, we consider Revolut Robo-advisor a great option for any beginner investor that wants to build a diversified investment portfolio with little effort, especially for lower amounts. It is one of the best alternatives in Europe, in our view, for small amounts.
For beginner investors, it “saves” the hassle of choosing a bad trading platform, choosing the wrong investment instruments, and allows you to start with small amounts and save over time. For that reason, we believe that this is a great solution! Revolut is also a transparent company and the robo-advisor is aligned with users’ goals: to make profits.
On the downside, if you’re comfortable managing your own investments and saving the 0.75% annual fee, you will be better served using a trading platform instead of a robo-advisor. We would also recommend using an online broker if you have a high investment amount.
Revolut has below-average customer support. In case you have any issues, it will be harder to contact customer support than using a premium brokerage platform like the ones mentioned before. Plus, the core of Revolut is not the robo-advisor, and this company still has a short track record.
Video summary
Overview
Founded in 2015, Revolut has rapidly expanded its services to become a comprehensive financial super-app with over 35 million customers worldwide. The introduction of the Robo-Advisor in the EEA is part of Revolut's ongoing mission to democratize financial services and make investing more accessible.
Revolut's Robo-Advisor leverages technology to offer a fully automated investment experience. The service constructs personalized portfolios based on individual risk tolerance and financial goals, continuously rebalancing to align with market movements. This approach ensures a hands-off investment strategy suitable for both beginners and those with busy schedules.
One notable feature is the low minimum investment requirement of €100, which opens the door for a broader audience to start their investment journey. While the annual management fee of 0.75% is competitive, users need to factor this cost into their overall investment strategy.
Revolut's commitment to user-friendly financial solutions extends beyond the Robo-Advisor. The app also offers a broad range of investment opportunities, including US and EU-listed securities and various ETFs, providing a comprehensive platform for diversified investment options.
In terms of security, investment services within the EEA are provided by Revolut Securities Europe UAB, an investment firm authorized and regulated by the Bank of Lithuania. This ensures that users' investments are safeguarded under stringent regulatory standards.
To summarize, Revolut's Robo-Advisor is a strategic addition to its suite of financial tools, designed to simplify and enhance the investment process for its users.
Pros & Cons
Pros
Accessibility: Low minimum investment (€100) and user-friendly app make it easy to start investing;
Automated investing: Hands-off approach with automatic portfolio management and rebalancing;
Cost-effective: Competitive 0.75% annual fee (including VAT), no trading commissions or withdrawal fees;
Tax reporting: Provides a consolidated annual tax report for simplified filing;
Wide range of additional services offered: as a digital bank, if you sign up to Revolut, you can also use the debit card, benefit from a savings account, or even trade individual shares. Revolut is a one-stop-shop, not just a regular robo-advisor.
Cons
Limited investment choices: Currently only offers ETF portfolios, no individual stocks or other asset classes;
No ESG portfolio options: No dedicated socially responsible investing portfolios, though Revolut plans to add them in the future;
Limited customization: Pre-built portfolios with limited flexibility for personalized adjustments;
Customer support challenges: While live chat is available, access may be inconsistent;
It’s impossible to transfer your securities to another broker: In case you want to change to another broker, you’ll most likely have to sell your instruments, and buy them again;
No advisor access: You won’t be able to speak with a human financial advisor.
Platform
Revolut's Robo-Advisor operates exclusively through its mobile app, offering no separate web platform. This mobile-first approach aligns with Revolut's overall focus on providing financial services through a convenient and user-friendly app. Below is an overview of the key features and functionalities.
Revolut’s mobile app Navigation
Navigating through Revolut’s mobile app is quite simple. To access the Robo-Advisor, go to the “Invest” tab and select it. Here, you will see the portfolio you previously selected. In this example, it displays the “Aggressive Growth” Portfolio.
To view all the portfolio allocations, simply press where it says “See all.” This will reveal all the portfolio’s holdings, including ETFs tracking indices containing stocks, ETFs tracking bonds, and the percentage of cash allocated.
User interface and features
Revolut offers an intuitive and user-friendly interface accessible via its mobile app. The platform is designed to make it easy for users to navigate and manage their investments on the go. Key features include:
Portfolio tracker: A clear and concise dashboard provides a snapshot of your portfolio's performance, asset allocation, and recent transactions;
Tax, activity, and dividend reports: Easily access detailed reports for tax purposes, tracking your investment activity, and monitoring dividend payments;
Educational content: Revolut offers educational resources through its "Learn" section, primarily focused on cryptocurrencies. However, you can also find information on fraud awareness and protecting your money, which is helpful for all users.
Product Offer, Portfolios, and Investment Strategy
Revolut's Robo-Advisor tailors your investment journey through a personalized approach, starting with an initial questionnaire to assess your risk tolerance, financial goals, and investment time horizon. This information forms the basis for your recommended portfolio. While you can adjust your risk profile later, it's crucial to note that your initial answers will significantly impact the recommended portfolio's composition.
Here’s the list of Revolut Robo-Advisor offering based on your profile:
1. Defensive Portfolio
Risk Level: 1/5
Average Annual Return: +2.09%
Maximum Drawdown: -10.28%
Standard Deviation: 6.03%
Sharpe Ratio: 0.02
Designed for investment goals with a short-term horizon. It is best suited for investors who prioritize stability and capital preservation over high growth.
This portfolio typically includes 98% in ETFs that replicate bonds and 2% in cash (EUR) to ensure capital preservation.
For an investment of €1,000 over 10 years, with an average annual return of 2.09%, the expected final value is approximately €1,221.
2. Slow and Steady Portfolio
Risk Level: 2/5
Average Annual Return: +5.55%
Maximum Drawdown: -16.05%
Standard Deviation: 4.85%
Sharpe Ratio: 0.73
Designed for investment goals with a short-medium term horizon. Ideal for investors who value principal conservation but are comfortable with a small degree of risk and volatility to seek some growth potential.
This portfolio typically comprises 25% in ETFs containing stocks, 73% in ETFs that replicate bonds, and 2% in cash (EUR). For an investment of €1,000 over 10 years, with an average annual return of 5.55%, the expected final value is approximately €1,717.
3. Balanced Bundle Portfolio
Risk Level: 3/5
Average Annual Return: +10.13%
Maximum Drawdown: -21.76%
Standard Deviation: 7.56%
Sharpe Ratio: 1.08
This portfolio is designed for investment goals with a medium-term horizon. It is best for investors seeking relatively higher returns while being willing to accept modest risk.
This portfolio usually includes a diversified mix of 52% in ETFs containing stocks, 48% in ETFs that replicate bonds, and 2% in cash (EUR). For an investment of €1,000 over 10 years, with an average annual return of 10.13%, the expected final value is approximately €2,625.
4. Bold Stack Portfolio
Risk Level: 4/5
Average Annual Return: +12.46%
Maximum Drawdown: -25.93%
Standard Deviation: 10.62%
Sharpe Ratio: 0.99
Designed for investment goals with a medium-long-term horizon. It is best suited for investors seeking long-term growth with somewhat less variable returns and above-average volatility.
This portfolio is composed primarily of 70% in ETFs containing stocks, 28% in ETFs that replicate bonds, and 2% in cash (EUR).For an investment of €1,000 over 10 years, with an average annual return of 12.46%, the expected final value is approximately €3,241.
5. Aggressive Growth Portfolio
Risk Level: 5/5
Average Annual Return: +15.62%
Maximum Drawdown: -29.02%
Standard Deviation: 13.37%
Sharpe Ratio: 1.02
This portfolio is designed for investment goals with a long-term horizon. It is best for investors focusing on high-growth potential with the ability to withstand higher market swings.
This portfolio is heavily weighted towards 88% in ETFs containing stocks, 10% in ETFs that replicate bonds, and 2% in cash (EUR), aiming for maximum growth despite high volatility.For an investment of €1,000 over 10 years, with an average annual return of 15.62%, the expected final value is approximately €4,258.
Recurring investing
Users can automate regular investments from as little as €10 into their chosen portfolio. This feature allows for consistent contributions at a frequency and amount you define.
By investing regularly, you can benefit from dollar-cost averaging, a strategy that can help mitigate the impact of short-term market volatility. It also promotes a habit of consistent investing, which can be key to building wealth over time.
Rebalancing Portfolio
Revolut automatically rebalances your portfolio to maintain its target asset allocation over time. This process involves periodically buying and selling assets to ensure your portfolio's risk level stays aligned with your initial preferences, even as market conditions fluctuate.
Note: These projections offer a glimpse into potential future returns based on historical data. However, it's important to note that actual returns can vary, and investments are subject to risks. Always consider your financial goals and risk tolerance before selecting a portfolio.
Fees
Revolut's Robo-Advisor service comes with a straightforward fee structure for users in the European Economic Area (EEA). The primary fee is an annual management fee of 0.75%, calculated monthly based on the average daily balance of your investments. This fee covers the cost of portfolio management and is automatically deducted from your Robo-Advisor account at the end of each month.
How the fee is calculated
To illustrate, if your average monthly portfolio balance is €10,000, the monthly management fee would be €6.16. This is calculated as follows:
€10,000 * 0.0075 * (30/365) = €6.16
VAT on management fees
Depending on your country of residence, this 0.75% fee may include a 21% VAT set in Lithuania. If VAT is applicable, it's already incorporated into the 0.75% fee, so that you won't see any additional charges. The only additional fees are the total expense ratios included in the ETFs which vary depending on the specific ETFs chosen for your investment strategy.
These costs are inherent to the ETFs and not directly charged by Revolut.
No additional fee
Revolut does not charge fees for:
Opening or closing your Robo-Advisor account;
Withdrawals;
Trading or commissions;
Custody services;
Account transfers.
For a full breakdown of Revolut's fees, you can find additional details on their website.
Safety and Reliability
Revolut's investment platform features various security measures and operates within a regulated framework to protect user assets. Let's delve deeper into how Revolut safeguards your investments.
Regulatory oversight
Revolut's Robo-Advisor service is provided by Revolut Securities Europe UAB, which is licensed and regulated by the Bank of Lithuania. This regulatory framework ensures that the platform adheres to strict financial standards and practices.
Investor Protection
Revolut Robo-Advisor users benefit from protection under the Lithuanian Deposit and Investment Insurance scheme. If Revolut Securities Europe UAB becomes insolvent, this scheme safeguards your investments up to €22,000, encompassing both cash and securities held in your Robo-Advisor account.
This protection does not cover market risks associated with investing. As with any financial instrument, using Robo-Advisor involves the risk of losing all or some of the money you invested.
For more information on how Revolut protects your investments, you can visit their Key information on the Liabilities to Investors Insurance Scheme here.
Security measures
Revolut employs advanced security protocols to protect user data and investments. Key security features include:
Data encryption: All sensitive information is encrypted, ensuring that user data is protected against unauthorized access;
Two-Factor authentication: Users can enable two-factor authentication (2FA) for an additional layer of security, reducing the risk of unauthorized account access;
Secure transactions: All transactions are monitored and protected using state-of-the-art security technologies to prevent fraud and unauthorized activities.
Asset protection
Revolut ensures that your investments are securely held and managed:
Segregated Accounts: Client funds are held in segregated accounts, separate from Revolut’s operational funds. This means your investments are protected and not used for the company's business activities;
Custodian Services: Investments are held by reputable custodian banks, providing an extra layer of security and reliability.
For more information, you can check Revolut's Key Information on the Liabilities to Investors Insurance Scheme here.
Customer Support
Revolut offers customer support primarily through its in-app help center, which houses a comprehensive collection of FAQs designed to address common questions and issues. For more personalized assistance, the company states that live chat support is available directly through the app.
Live chat support
While Revolut indicates that live chat support is accessible, my experience as a user in Portugal suggests otherwise. Despite following the steps outlined by Revolut to access live chat, I was only presented with FAQs and no option to chat with a live agent. This suggests that live chat availability may vary depending on your location or other factors.
Alternative support methods
If you find yourself unable to access live chat, Revolut does provide an email address and an automated phone line for customer support inquiries.
You can find further details about these alternative contact methods and other support resources on Revolut's official website.
Account Opening
Revolut's Robo-Advisor is designed to simplify the investment process for residents of the European Economic Area (EEA). To get started, you'll first need an active Revolut Bank UAB account and a verified identity.
Eligibility Requirements
You must meet the following criteria to open a Robo-Advisor account:
Be at least 18 years old;
Be a legal resident of the EEA;
Have a valid local personal identification code/tax number;
Have the latest version of the Revolut app installed.
How to open an account
You can apply for a Robo-Advisor account directly within the Revolut app:
Navigate to the "Invest" tab at the bottom of the app;
Go to the "Automated Portfolios (Robo-Advisor)" section;
Complete the sign-up process, including the suitability questionnaire;
Review and accept the Terms & Conditions.
Revolut will typically review your application within 48 hours and notify you when your trading account is ready.
Minimum investment
The Robo-Advisor requires a minimum initial investment of €100, making it accessible to a wide range of investors.
Required documents and suitability questionnaire
You'll also complete a suitability questionnaire to assess your financial situation, risk tolerance, and investment experience. This information is used to create a personalized investment strategy and model portfolio that aligns with your individual needs and goals.
During the sign-up process, you'll need to provide:
A copy of a valid identity document;
A FATCA/CRS declaration;
A W-8 BEN form (for US tax purposes).
Base currency and currency conversions
The Robo-Advisor operates with your Revolut account's base currency. While Revolut supports multiple currencies, your Robo-Advisor investments will be denominated and managed in your chosen base currency. If you deposit funds in a different currency than your base currency, Revolut will automatically convert the amount at their prevailing exchange rate, which may incur fees depending on your account type and the specific currencies involved.
Available Countries
Revolut's Robo-Advisor service is currently accessible to residents of the following European countries:
In summary, Revolut's Robo-Advisor offers a convenient and accessible entry point into the world of investing, particularly for those seeking a hands-off approach. Its user-friendly interface, low minimum investment, and competitive fees make it an attractive option for beginners and experienced investors alike.
However, the limited investment choices, absence of ESG portfolios, and potential challenges with customer support are factors to consider.
Furthermore, if you’re comfortable managing your own investments and saving the annual fee, you will be better served using a trading platform and buying the ETFs yourself instead of a robo-advisor.
Looking for alternatives to Revolut Robo-Advisor? Check out our comprehensive list of robo-advisors available to compare features and find the perfect fit for your investment needs.
Hope we helped, and feel free to get in touch if you want to share feedback or have any questions.
Hello, investor! This article will provide our review of the newly launched Revolut Robo-Advisor in the EEA.
At Robo-Advisor Finder, we follow over 80 Robo-advisors worldwide, of which more than 30 offer their services to European investors. That's a lot to check, right? In this article, we'll make it easier for you by reviewing Revoluts’ Robo-advisor feature.
Revolut's Robo-Advisor is designed for those who want to automate their investing without spending much time on research or managing portfolios.
The service offers a personalized investment experience by taking into account your risk tolerance and financial goals, making it suitable for both beginners and those with limited trading experience.
One of the standout features of Revolut's Robo-Advisor is its low minimum investment requirement of €100, making it easier for a wider audience to start investing. However, it charges an annual management fee of 0.75%, which is something potential users should consider.
Revolut, a financial super-app with over 35 million customers globally, is expanding its suite of services with this Robo-Advisor, aiming to simplify and enhance the investment process for its users.
That's Revolut's Robo-Advisor in a nutshell. If you want to find out what our research team has to say after carefully analyzing this new service, keep reading.
Our overall take on Revolut Robo-Advisor:
All in all, we consider Revolut Robo-advisor a great option for any beginner investor that wants to build a diversified investment portfolio with little effort, especially for lower amounts. It is one of the best alternatives in Europe, in our view, for small amounts.
For beginner investors, it “saves” the hassle of choosing a bad trading platform, choosing the wrong investment instruments, and allows you to start with small amounts and save over time. For that reason, we believe that this is a great solution! Revolut is also a transparent company and the robo-advisor is aligned with users’ goals: to make profits.
On the downside, if you’re comfortable managing your own investments and saving the 0.75% annual fee, you will be better served using a trading platform instead of a robo-advisor. We would also recommend using an online broker if you have a high investment amount.
Revolut has below-average customer support. In case you have any issues, it will be harder to contact customer support than using a premium brokerage platform like the ones mentioned before. Plus, the core of Revolut is not the robo-advisor, and this company still has a short track record.
Founded in 2015, Revolut has rapidly expanded its services to become a comprehensive financial super-app with over 35 million customers worldwide. The introduction of the Robo-Advisor in the EEA is part of Revolut's ongoing mission to democratize financial services and make investing more accessible.
Revolut's Robo-Advisor leverages technology to offer a fully automated investment experience. The service constructs personalized portfolios based on individual risk tolerance and financial goals, continuously rebalancing to align with market movements. This approach ensures a hands-off investment strategy suitable for both beginners and those with busy schedules.
One notable feature is the low minimum investment requirement of €100, which opens the door for a broader audience to start their investment journey. While the annual management fee of 0.75% is competitive, users need to factor this cost into their overall investment strategy.
Revolut's commitment to user-friendly financial solutions extends beyond the Robo-Advisor. The app also offers a broad range of investment opportunities, including US and EU-listed securities and various ETFs, providing a comprehensive platform for diversified investment options.
In terms of security, investment services within the EEA are provided by Revolut Securities Europe UAB, an investment firm authorized and regulated by the Bank of Lithuania. This ensures that users' investments are safeguarded under stringent regulatory standards.
To summarize, Revolut's Robo-Advisor is a strategic addition to its suite of financial tools, designed to simplify and enhance the investment process for its users.
Revolut Robo-Advisor review - Revolut Robo-Advisor Pros and Cons
Revolut Robo-Advisor Pros and Cons
Pros
Accessibility: Low minimum investment (€100) and user-friendly app make it easy to start investing;
Automated investing: Hands-off approach with automatic portfolio management and rebalancing;
Cost-effective: Competitive 0.75% annual fee (including VAT), no trading commissions or withdrawal fees;
Tax reporting: Provides a consolidated annual tax report for simplified filing;
Wide range of additional services offered: as a digital bank, if you sign up to Revolut, you can also use the debit card, benefit from a savings account, or even trade individual shares. Revolut is a one-stop-shop, not just a regular robo-advisor.
Cons
Limited investment choices: Currently only offers ETF portfolios, no individual stocks or other asset classes;
No ESG portfolio options: No dedicated socially responsible investing portfolios, though Revolut plans to add them in the future;
Limited customization: Pre-built portfolios with limited flexibility for personalized adjustments;
Customer support challenges: While live chat is available, access may be inconsistent;
It’s impossible to transfer your securities to another broker: In case you want to change to another broker, you’ll most likely have to sell your instruments, and buy them again;
No advisor access: You won’t be able to speak with a human financial advisor.
Revolut's Robo-Advisor operates exclusively through its mobile app, offering no separate web platform. This mobile-first approach aligns with Revolut's overall focus on providing financial services through a convenient and user-friendly app. Below is an overview of the key features and functionalities.
Revolut’s mobile app Navigation
Navigating through Revolut’s mobile app is quite simple. To access the Robo-Advisor, go to the “Invest” tab and select it. Here, you will see the portfolio you previously selected. In this example, it displays the “Aggressive Growth” Portfolio.
To view all the portfolio allocations, simply press where it says “See all.” This will reveal all the portfolio’s holdings, including ETFs tracking indices containing stocks, ETFs tracking bonds, and the percentage of cash allocated.
User interface and features
Revolut offers an intuitive and user-friendly interface accessible via its mobile app. The platform is designed to make it easy for users to navigate and manage their investments on the go. Key features include:
Portfolio tracker: A clear and concise dashboard provides a snapshot of your portfolio's performance, asset allocation, and recent transactions;
Tax, activity, and dividend reports: Easily access detailed reports for tax purposes, tracking your investment activity, and monitoring dividend payments;
Educational content: Revolut offers educational resources through its "Learn" section, primarily focused on cryptocurrencies. However, you can also find information on fraud awareness and protecting your money, which is helpful for all users.
Revolut Robo-Advisor Product Offer, Portfolios, and Investment Strategy
Revolut's Robo-Advisor tailors your investment journey through a personalized approach, starting with an initial questionnaire to assess your risk tolerance, financial goals, and investment time horizon. This information forms the basis for your recommended portfolio. While you can adjust your risk profile later, it's crucial to note that your initial answers will significantly impact the recommended portfolio's composition.
Here’s the list of Revolut Robo-Advisor offering based on your profile:
1. Defensive Portfolio
Risk Level: 1/5
Average Annual Return: +2.09%
Maximum Drawdown: -10.28%
Standard Deviation: 6.03%
Sharpe Ratio: 0.02
Designed for investment goals with a short-term horizon. It is best suited for investors who prioritize stability and capital preservation over high growth.
This portfolio typically includes 98% in ETFs that replicate bonds and 2% in cash (EUR) to ensure capital preservation.
For an investment of €1,000 over 10 years, with an average annual return of 2.09%, the expected final value is approximately €1,221.
2. Slow and Steady Portfolio
Risk Level: 2/5
Average Annual Return: +5.55%
Maximum Drawdown: -16.05%
Standard Deviation: 4.85%
Sharpe Ratio: 0.73
Designed for investment goals with a short-medium term horizon. Ideal for investors who value principal conservation but are comfortable with a small degree of risk and volatility to seek some growth potential.
This portfolio typically comprises 25% in ETFs containing stocks, 73% in ETFs that replicate bonds, and 2% in cash (EUR). For an investment of €1,000 over 10 years, with an average annual return of 5.55%, the expected final value is approximately €1,717.
3. Balanced Bundle Portfolio
Risk Level: 3/5
Average Annual Return: +10.13%
Maximum Drawdown: -21.76%
Standard Deviation: 7.56%
Sharpe Ratio: 1.08
This portfolio is designed for investment goals with a medium-term horizon. It is best for investors seeking relatively higher returns while being willing to accept modest risk.
This portfolio usually includes a diversified mix of 52% in ETFs containing stocks, 48% in ETFs that replicate bonds, and 2% in cash (EUR). For an investment of €1,000 over 10 years, with an average annual return of 10.13%, the expected final value is approximately €2,625.
4. Bold Stack Portfolio
Risk Level: 4/5
Average Annual Return: +12.46%
Maximum Drawdown: -25.93%
Standard Deviation: 10.62%
Sharpe Ratio: 0.99
Designed for investment goals with a medium-long-term horizon. It is best suited for investors seeking long-term growth with somewhat less variable returns and above-average volatility.
This portfolio is composed primarily of 70% in ETFs containing stocks, 28% in ETFs that replicate bonds, and 2% in cash (EUR).For an investment of €1,000 over 10 years, with an average annual return of 12.46%, the expected final value is approximately €3,241.
5. Aggressive Growth Portfolio
Risk Level: 5/5
Average Annual Return: +15.62%
Maximum Drawdown: -29.02%
Standard Deviation: 13.37%
Sharpe Ratio: 1.02
This portfolio is designed for investment goals with a long-term horizon. It is best for investors focusing on high-growth potential with the ability to withstand higher market swings.
This portfolio is heavily weighted towards 88% in ETFs containing stocks, 10% in ETFs that replicate bonds, and 2% in cash (EUR), aiming for maximum growth despite high volatility.For an investment of €1,000 over 10 years, with an average annual return of 15.62%, the expected final value is approximately €4,258.
Recurring investing
Users can automate regular investments from as little as €10 into their chosen portfolio. This feature allows for consistent contributions at a frequency and amount you define.
By investing regularly, you can benefit from dollar-cost averaging, a strategy that can help mitigate the impact of short-term market volatility. It also promotes a habit of consistent investing, which can be key to building wealth over time.
Rebalancing Portfolio
Revolut automatically rebalances your portfolio to maintain its target asset allocation over time. This process involves periodically buying and selling assets to ensure your portfolio's risk level stays aligned with your initial preferences, even as market conditions fluctuate.
Note: These projections offer a glimpse into potential future returns based on historical data. However, it's important to note that actual returns can vary, and investments are subject to risks. Always consider your financial goals and risk tolerance before selecting a portfolio.
Revolut's Robo-Advisor service comes with a straightforward fee structure for users in the European Economic Area (EEA). The primary fee is an annual management fee of 0.75%, calculated monthly based on the average daily balance of your investments. This fee covers the cost of portfolio management and is automatically deducted from your Robo-Advisor account at the end of each month.
How the fee is calculated
To illustrate, if your average monthly portfolio balance is €10,000, the monthly management fee would be €6.16. This is calculated as follows:
€10,000 * 0.0075 * (30/365) = €6.16
VAT on management fees
Depending on your country of residence, this 0.75% fee may include a 21% VAT set in Lithuania. If VAT is applicable, it's already incorporated into the 0.75% fee, so that you won't see any additional charges. The only additional fees are the total expense ratios included in the ETFs which vary depending on the specific ETFs chosen for your investment strategy.
These costs are inherent to the ETFs and not directly charged by Revolut.
No additional fee
Revolut does not charge fees for:
Opening or closing your Robo-Advisor account;
Withdrawals;
Trading or commissions;
Custody services;
Account transfers.
For a full breakdown of Revolut's fees, you can find additional details on their website.
Revolut Robo-Advisor review - Revolut Robo-Advisor Safety and Reliability
Revolut Robo-Advisor Safety and Reliability
Revolut's investment platform features various security measures and operates within a regulated framework to protect user assets. Let's delve deeper into how Revolut safeguards your investments.
Regulatory oversight
Revolut's Robo-Advisor service is provided by Revolut Securities Europe UAB, which is licensed and regulated by the Bank of Lithuania. This regulatory framework ensures that the platform adheres to strict financial standards and practices.
Investor Protection
Revolut Robo-Advisor users benefit from protection under the Lithuanian Deposit and Investment Insurance scheme. If Revolut Securities Europe UAB becomes insolvent, this scheme safeguards your investments up to €22,000, encompassing both cash and securities held in your Robo-Advisor account.
This protection does not cover market risks associated with investing. As with any financial instrument, using Robo-Advisor involves the risk of losing all or some of the money you invested.
For more information on how Revolut protects your investments, you can visit their Key information on the Liabilities to Investors Insurance Scheme here.
Security measures
Revolut employs advanced security protocols to protect user data and investments. Key security features include:
Data encryption: All sensitive information is encrypted, ensuring that user data is protected against unauthorized access;
Two-Factor authentication: Users can enable two-factor authentication (2FA) for an additional layer of security, reducing the risk of unauthorized account access;
Secure transactions: All transactions are monitored and protected using state-of-the-art security technologies to prevent fraud and unauthorized activities.
Asset protection
Revolut ensures that your investments are securely held and managed:
Segregated Accounts: Client funds are held in segregated accounts, separate from Revolut’s operational funds. This means your investments are protected and not used for the company's business activities;
Custodian Services: Investments are held by reputable custodian banks, providing an extra layer of security and reliability.
For more information, you can check Revolut's Key Information on the Liabilities to Investors Insurance Scheme here.
Revolut Robo-Advisor review - Revolut Robo-Advisor Customer Support
Revolut Robo-Advisor Customer Support
Revolut offers customer support primarily through its in-app help center, which houses a comprehensive collection of FAQs designed to address common questions and issues. For more personalized assistance, the company states that live chat support is available directly through the app.
Live chat support
While Revolut indicates that live chat support is accessible, my experience as a user in Portugal suggests otherwise. Despite following the steps outlined by Revolut to access live chat, I was only presented with FAQs and no option to chat with a live agent. This suggests that live chat availability may vary depending on your location or other factors.
Alternative support methods
If you find yourself unable to access live chat, Revolut does provide an email address and an automated phone line for customer support inquiries.
You can find further details about these alternative contact methods and other support resources on Revolut's official website.
Revolut's Robo-Advisor is designed to simplify the investment process for residents of the European Economic Area (EEA). To get started, you'll first need an active Revolut Bank UAB account and a verified identity.
Eligibility Requirements
You must meet the following criteria to open a Robo-Advisor account:
Be at least 18 years old;
Be a legal resident of the EEA;
Have a valid local personal identification code/tax number;
Have the latest version of the Revolut app installed.
How to open an account
You can apply for a Robo-Advisor account directly within the Revolut app:
Navigate to the "Invest" tab at the bottom of the app;
Go to the "Automated Portfolios (Robo-Advisor)" section;
Complete the sign-up process, including the suitability questionnaire;
Review and accept the Terms & Conditions.
Revolut will typically review your application within 48 hours and notify you when your trading account is ready.
Minimum investment
The Robo-Advisor requires a minimum initial investment of €100, making it accessible to a wide range of investors.
Required documents and suitability questionnaire
You'll also complete a suitability questionnaire to assess your financial situation, risk tolerance, and investment experience. This information is used to create a personalized investment strategy and model portfolio that aligns with your individual needs and goals.
During the sign-up process, you'll need to provide:
A copy of a valid identity document;
A FATCA/CRS declaration;
A W-8 BEN form (for US tax purposes).
Base currency and currency conversions
The Robo-Advisor operates with your Revolut account's base currency. While Revolut supports multiple currencies, your Robo-Advisor investments will be denominated and managed in your chosen base currency. If you deposit funds in a different currency than your base currency, Revolut will automatically convert the amount at their prevailing exchange rate, which may incur fees depending on your account type and the specific currencies involved.
Available Countries
Revolut's Robo-Advisor service is currently accessible to residents of the following European countries:
In summary, Revolut's Robo-Advisor offers a convenient and accessible entry point into the world of investing, particularly for those seeking a hands-off approach. Its user-friendly interface, low minimum investment, and competitive fees make it an attractive option for beginners and experienced investors alike.
However, the limited investment choices, absence of ESG portfolios, and potential challenges with customer support are factors to consider.
Furthermore, if you’re comfortable managing your own investments and saving the annual fee, you will be better served using a trading platform and buying the ETFs yourself instead of a robo-advisor.
Looking for alternatives to Revolut Robo-Advisor? Check out our comprehensive list of robo-advisors available to compare features and find the perfect fit for your investment needs.
Hope we helped, and feel free to get in touch if you want to share feedback or have any questions.
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