Investing in US shares? See how our Stock Trading feature compares

Revolut Australia

 · 02/22/2022  · 02/22/2022

Note: The information provided in this article is correct as of 17 February 2022.

From high minimum trading sizes to expensive commission or brokerage fees, investing in US stocks can be confusing and costly if you don’t do your homework.

Luckily, we’ve done a bit of the number crunching for you and compared Revolut to three other providers that offer international stock trading for Australians. Our conclusion? You could save big using our Stock Trading feature.

This isn’t a huge surprise. We brought our Stock Trading feature to Australia because we knew we could create a better way for Aussies to trade US stocks on the New York Stock Exchange (NYSE) or NASDAQ and invest in some of the world’s most prominent companies.

So how did we fare?

When it comes to financial services, there are hidden fees everywhere, so we made sure we searched high and low for any hidden brokerage fees, deposit fees, withdrawal fees, foreign exchange (FX) fees, or custody fees.

What we found is when it comes to fees, we’re pretty proud of how we fared. Unlike the other providers we researched, our customers get access to both commission-free trades and fee-free foreign exchange on converting AUD to USD.*

How much will I have to pay?

Some brokers make money from huge fees and margins on foreign exchange (FX), not us. Also, most brokers will make you pay the FX fee again if you want to cash out back to AUD.

Let’s take a closer look at these fees in practice. Say you wanted to convert AU$2,000 of savings into USD and make 5 different trades. Jump forward one year and you’ve made a tidy 10% profit and have decided it’s time to cash out.

This is roughly how much you’d pay using Revolut compared to other brokers:

Note: Comparison assumes that the FX conversion is made mid-week at a rate of 0.71.

How do fees impact my earnings?

It’s pretty simple: When fees are more expensive, there’s less to put into your investments, and therefore less in your pocket when you cash out.

So, taking that same example as above, let’s look at how the fee structure would impact how much you’d take home from the 10% profit:

Note: Comparison assumes that the FX conversion is made mid-week at a rate of 0.71. Assumes investment in 5 different US shares over a 1 year time period.

With Revolut you take home nearly all of your 10% gains. But what really shocked us was that with some of the other providers researched, a 10% gain on your investment would barely cover your fees, if at all. Such is the impact they can have on your investment.

Want to know more?

Our research shows you could save hundreds of dollars in fees when you invest with Revolut.

But we do still charge some fees and we want to be completely transparent about that. So if you want to see all our fees in greater detail, please visit our Fee Disclosure page.

One more thing before you go

It’s important to remember that, as with any trading product, your capital is at risk when you invest in shares, and you may lose the money that you put in.