Introducing Auto-Exchange 💸

Rob Braileanu

 · 03/03/2020  · 03/03/2020

One of the best things about the Revolut app is the ability to instantly exchange money into 28 different currencies with no hidden fees, all at the tap of a button.

Building on this core feature that made Revolut one of the fastest growing Fintechs in the world, we're extremely proud to bring Auto-exchanges to the U.S.

What is an auto-exchange? 🤷‍♂️

We decided to leave the fancy marketing jargon at the door and make this feature as straightforward and easy to use as possible, starting with the name. So with that in mind, Auto-exchange does precisely what it says on the tin - automatically exchanges your money from one currency into another based on a target rate you set.

For example, you can set an Auto-exchange to convert, say, 100 USD into GBP whenever 1 GBP costs more than 1.21 USD (or any other value you want to set). Then you can kick back and relax, knowing that your money will only be exchanged when the stars align and the markets work in your favor, automatically giving you the most bang for your buck. Pretty cool, don't you think? 😏

How does it work? 🤔

Load up your Revolut app, navigate to any currency pair in the Rates page, or go to Rates, Actions and tap on Auto-exchange. Choose the two currencies you want to exchange between, the amount you want to convert and tap on ‘Set target’.

Then, carefully read and accept the risk disclaimer, set your target rates and tap the Auto-exchange button to set it live. The exchange will only trigger once your target rate has been reached, but you should be aware that the rate could be slightly different from your target value, when the auto-exchange takes place. This happens because, just like us, the exchange rate never settles.

How to set a target value? 🎯

Even if you're the ultimate finance guru, setting a target might seem a bit confusing at first, so pay attention.

Setting limits above the current rate 📈

Let's say you want to exchange 100 U.S. dollars to pounds and today’s rate was  $1 = £0.82, you might want to set a target rate of $1 = £0.88, to take advantage of a better exchange rate as the market fluctuates.

Setting the values this way is like saying "exchange my 100 dollars into pounds whenever 1 dollar is greater than or equal to 88 pence." Conversely, if you want to sell Pounds (ie. exchange pounds to US dollars), you can simply swap the currencies in the app, look at the current rate and set your target slightly higher.

To recap, targets can be set above the current value, if you’re hoping to exchange at a better rate in the future. This means that the exchange will only executed when the current rate is equal to or higher than your target.

Setting limits below the current rate 📉

That said, let’s assume a doomsday scenario where you think there is a serious risk of the U.S. dollar losing most of its value. You can then set your target lower than the current value, for instance 80¢ = £1, which means that the exchange won’t be executed if the rate is equal to or less than your target.

In this scenario, what you’re basically saying is: ‘If the dollar plunges, I think there is a significant chance that it will keep going down, and so I want to sell my U.S. dollars for pounds now, before the value drops any further’.

To recap, targets can also be set below the current value, which means the exchange won’t be executed until the current value is equal to or lower than your target rate, if you think there’s a risk that the value of whatever currency you’re holding might drop even more in the future. In any case, if the rate never hits your target, no currencies will be exchanged, so you don't have to worry about a thing - just let the tech do its magic. 👌🏻

Are there any limits to auto-exchanges? ✋🏻

You can auto-exchange all or part of your balance from any of our 28 available currencies, subject to some daily limits. This means you can set an automatic exchange for GBP to EUR, USD to CAD, HKD, AUD and everything in between.

When exchanging to or from any cryptocurrency in the app, please note that there is a monthly limit of  $6,500 and once you’ve hit your limit, a small 0.5% fee will be charged on any additional exchanges.

You can make as many as 30 auto-exchanges per day, so any exchanges that are triggered after you’ve hit your limit will fail. If you wait until the next day, you’ll be able to schedule another.

What happens when market volatility is high? 💹

If the market is particularly volatile, your target value might have shifted in the brief window between the target value being hit, and the auto-exchange being performed.

So, if the rate moves more than 0.75% on either side of your target value for fiat currencies, or more than 5% on either side of your target value for cryptocurrencies, we won’t carry out your auto-exchange. Once your target value hits again, we’ll re-attempt the auto-exchange.

What our lawyers want you to remember 👨🏻‍⚖️👩🏻‍⚖️

Just remember we can’t guarantee that you’ll receive the rate you request, but we’ll try to get the price as close to your target as we can.

Set up an Auto-exchange 📲