One of the best things about the Revolut app is the ability to instantly exchange money into 24 different fiat and 5 cryptocurrencies with no rubbish rates, 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 unveil Auto-exchanges to our more than 4 million users.
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 EUR into GBP whenever 1 GBP costs less than 1.1 EUR (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 favour, automatically giving you the most bang for your buck. Pretty cool, ey? 😏
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 Pounds to Euros and today’s rate was £1 = €1.12, you might want to set a target rate of £1 = €1.16, to take advantage of a better exchange rate as the market fluctuates.
Setting the values this way is like saying "exchange my 100 Pounds into Euros whenever 1 Pound is greater than or equal to 1.16 Euros." Conversely, if you want to sell Euros (ie. exchange Euros to Pounds), 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 Pound losing most of its value. You can then set your target lower than the current value, for instance £1 = €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 Pound plunges and gets as low as parity with the Euro, I think there is a significant chance that it will keep going down, and so I want to sell my Pounds for Euros 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 fiat or crypto currency, subject to some daily limits. This means you can set an automatic exchange for GBP to EUR, USD to BTC, ETH to XRP and everything in between. If Cryptocurrencies like Bitcoin, Ether and XRP don't appear in your list of currencies to Auto-exchange, this means you still need to unlock Cryptocurrencies in the app. Head to the More tab and tap Cryptocurrencies to do this first!
When exchanging to or from any cryptocurrency in the app, there is a daily limit of €10,000 and once you’ve hit your limit, you won’t be able to make any more exchanges until the next day.
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.
You must be satisfied that our crypto offering is suitable for you in light of your financial circumstances and attitude towards risk before starting. The price or value of cryptocurrencies can rapidly increase or decrease at any time (and may even fall to zero). The risk of loss in holding cryptocurrencies can be substantial. Funds received by us in relation to cryptocurrency transactions will not be safeguarded (under the UK Electronic Money Regulations 2011) or covered by the Financial Services Compensation Scheme. We do not make any representation regarding the advisability of transacting in cryptocurrency. We cannot guarantee the timeliness, accurateness, or completeness of any data or information used in connection with you holding any exposure to cryptocurrencies.
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