Experiences with Revolut/Transferwise

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Seppia
Posts: 1016
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Experiences with Revolut/Transferwise

Post by Seppia » Sat Aug 10, 2019 7:52 am

I just opened a Revolut account, it took me 3 mins and 10€, so I figured no big risk.
What lured me in is the possibility to transfer money internationally at the interbank rate, with zero fees up to something like 5000€ per month.

That's a pretty big deal: I'm lucky to be an HSBC Premier customer, so I get free international transfers, but the spread between the exchange rate I get and the interbank one is like 1,5%, which proved to be a fairly big hidden cost when I moved back to Italy from the USA.

Since I may be moving overseas again (in a different direction), I figure this could be a very effective way to move money.

What worries me is the fact that they don't have the european guarantee (the government guarantees your funds up to €100.000 here in case the bank goes bust).
Shouldn't be a big issue if one moves money into the Revolut account and then immediately out (using Revolut as a transit account basically), but still.

I would think this deserves its own thread as we have a lot of globetrotters here. I'll report my experiences with time

Anybody got any experience/anything?
Last edited by Seppia on Sat Aug 10, 2019 8:13 am, edited 1 time in total.

zocab
Posts: 10
Joined: Fri Jul 26, 2019 1:04 pm

Re: Experiences with Revolut/Transferwise

Post by zocab » Sat Aug 10, 2019 8:07 am

Seppia wrote:
Sat Aug 10, 2019 7:52 am
Anybody have any experience with these types of service?
I just opened a Revolut account, it took me 3 mins and 10€, so I figured no big risk.
What lured me in is the possibility to transfer money internationally at the interbank rate, with zero fees up to something like 5000€ per month.

That's a pretty big deal: I'm lucky to be an HSBC Premier customer, so I get free international transfers, but the spread between the exchange rate I get and the interbank one is like 1,5%, which proved to be a fairly big hidden cost when I moved back to Italy from the USA.

Since I may be moving overseas again (in a different direction), I figure this could be a very effective way to move money.

What worries me is the fact that they don't have the european guarantee (the government guarantees your funds up to €100.000 here in case the bank goes bust).
Shouldn't be a big issue if one moves money into the Revolut account and then immediately out (using Revolut as a transit account basically), but still.

I would think this deserves its own thread as we have a lot of globetrotters here. I'll report my experiences with time

Anybody got any experience/anything?
I know a few people who do use Revolut in this way, and I don't think they've had any issues - but like you suggest, they move their money out ASAP. I've personally used Transferwise in the past - they're reliable, BUT charge 0.35% commission per transfer (better than what banks give you to be fair).

However: I actually personally think Interactive Brokers are much better if you regularly transfer money: you get market rate for as much money as you like, albeit with USD2 commission per trade. Your account has SIPC insurance, and you can - in theory* - invest directly there too. Caveats: you need to wait 4 days after transferring money in to transfer it out again, and if you have less than 100k in your account they charge 10 USD (minus trade comissions) per month. You can solve the latter issue by transferring in 100k of stocks and securities to them.

* You can trade stocks on markets around the world, but they will prevent you from buying US-domiciled ETF's if resident in the EU.

(I'm actually doing the opposite with IB: I send my local currency to IB, convert it to USD, and invest on the US market. I'm currently a passive Index-but-tilted investor, and US-domiciled funds are unfortunately the most cost effective way to implement my strategy.)

frihet
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Re: Experiences with Revolut/Transferwise

Post by frihet » Sat Aug 10, 2019 8:14 am

I am a happy user since some months. I had to find another solution as my exchange fee free credit card changed its conditions.

Very easy to use and change between the currencies and easy to top up fee free with my Swedish credit card. I wonder how that works? I thought the credit card company took out a fee on every transaction and in that case Revolut looses on every top up?

As you said I would not keep amounts I would loose sleep over on the account.

One convenient thing was to add the card to PayPal. I’ve already made a few purchases online in USD fee free because of that.
Last edited by frihet on Mon Aug 12, 2019 1:39 am, edited 1 time in total.

Seppia
Posts: 1016
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: Experiences with Revolut/Transferwise

Post by Seppia » Sat Aug 10, 2019 8:18 am

Thanks for your replies. Interactive brokers is an option I hadn't considered, and could be a good one, especially because I've heard (to my biggest surprise) that in Hong Kong it's not that simple to invest in foreign stocks, and that the ETF market is not really developed.

I'll have to double check because I haven't really discussed with experienced people, but in that case IB would be a mandatory choice for me.

henrik
Posts: 755
Joined: Fri Apr 13, 2012 5:58 pm
Location: EE

Re: Experiences with Revolut/Transferwise

Post by henrik » Sat Aug 10, 2019 6:33 pm

Revolut has their European banking license (whatever that is) from Lithuania (because Brexit). Apparently it is being contested because of the owners' ties to Russia. It's probably worth checking out the details before committing to business with them, since you're in the EU.
My very cosmopolitan sister has been using Revolut for years and is very happy with them.
I have used Transferwise for EUR/USD and EUR/NOK transfers a few times (just the transfers, no deposits or anything), it's been fast and cheap and easy.

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