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Greetings from Lithuania! I'm wondering if you have done a video breaking down Interactive brokers? Particularly, fees, contract clauses and protections that are offered to EU citizens
If I understand correctly, in the event of DriveWealth's bankruptcy, the $500k would be divided among all Revolut stock traders. Can you kindly confirm if my understanding is correct?
@@yunussavas3481 I agree it doesn't make sense, but still, it is true: since Revolut will have only one account at DW, that whole account will be protected by the 500kUSD, meaning you'd get nothing in case DW goes bankrupt (unlikely, but possible). The T&Cs: "After Migration: If DriveWealth become insolvent and the shares of RSEUAB customers cannot be returned, SIPC provides up to $500,000 compensation. This protection will apply to the entire holdings in the RSEUAB omnibus account. You will not be entitled to the individual SIPC protection which you have currently, and you might receive significantly less than you would have prior to the migration." Please enlighten me if I understood it wrong?
To be honest, not really, also their custody fee and limited selection for investment instruments, for me makes it less attractive than other brokers such as the one's I am using i.e. IBKR, Trading 212 & Lightyear.
@@SmartMoneywithKai thank you for responding, a good show of care for your channel! I’m very new and inexperienced in this regard, i use revolut a lot as am currently studying abroad and the lack of exchange fee is very handy. I want to delve in to stocks and was attracted by it’s supposed ease of use. I think i will look into some isa’s or trading 212 now. :)
My pleasure and absolutely, for travelling and free currency exchange it's perfect (just make sure not to exchange on the weekend as they charge a small fee for that) You will see both Lightyear & Trading 212 have an even better and easier interface for buying stocks & ETFs, which Lightyear also offers commission free which is great. Cheers
Hi ,thanks a lot for the good explanation, I have question because my investment is small and in the email I understand that up to 22 000 euro , our investment is safe or I am in mistake . And one more question for the transfer to Interactive broker - can we transfer only few shares or we must transfer all the portofolio , thanks a lot 😊
Hi Pavlov, thanks a lot. Great question, that's correct, but only your cash sitting in your Revolut investment account will be protected, your actual investments technically not as it's shared across all other Revolut users, so you will basically get nothin in case of them going bust (which is unlikely though but not impossible) You can transfer some positions, Interactive Brokers allows you to specific which, so you would need to clearly indicate those on the IB transfer page. Cheers
Hi, your funds are still protected in the MMF up to €22K but only against insolvency of Revolut, if the MMF itself goes down, which is highly unlikely, then of course this would not be protected. Cheers
Thanks for this. Initiated it on August 3rd, and it reflected today (August 7th) in IKBR! Literally took them 2.5 business days. So relieved because if DriveWealth were to go bankrupt, I'd be screwed.
@@agiverreviga4592 I started with this guide of Kai's. I initiated it only a week ago, so there probably still is some time. In Revolut however, you need to check your stocks section to make sure it hasn't been moved to the new entity yet. If it still says "Revolut Ltd" at the bottom, you still have a chance.
Hi Björn, thanks for sharing. Didn't make to many withdrawals yet, but will keep that in mind. For deposits, yes, it's fast, but Revolut is cheaper with better FX rates as I usually send USD to IB. Cheers
While im no finiancial expert, i think that will never happen. This decision is driven by a lot of factors and is not easy to make in the first place. The only thing that is possible ( but not probable) is revolut trying to leverage some lithuania laws for similar protections. Looking at one of the well established banks (Swedbank, it's not "local" but nordic capital, but it has been operating in the country for like 20 years), they seem to offer protections upto 22,000 eur for their investors, so i do not expect revolut to magicly 5x that.
Hi Martin, thanks a lot🙏I doubt it also, this must have been a very deliberate decision, and probably cost implications behind it as well, insurance does not come free:) Also, I doubt many people will read the fine print and really know their fund protection limits. I see so many other brokers out there with shady practices yet people keep signing up to them. So I hope you'll be one of the smarter ones to make the right decision to protect your funds😉 Cheers
Hi Peter, I would recommend Interactive Brokers. This is the most reliable and trustworthy broker. If you are really just starting out Lightyear could be a good alternative as well, but personally I use Interactive Brokers👍
@@tomaspacifico My pleasure and yes, they are. Are Lightyear customers covered by EU wide asset guarantee schemes? Yes, all Lightyear customers have their assets covered up to the amount of 20,000 EUR by the Estonian Investor Protection Sectoral Fund. Read more about this fund here. Am I covered by the Securities Investor Protection Corporation (SIPC) protection in the US? Your US securities are held with our partner Alpaca, who is FINRA regulated and is a registered member of the Securities Investor Protection Corporation (SIPC). This means your US securities are protected up to the value of $500,000 should Alpaca fail. You can read more about this directly on the SIPC website.
Hi there, good question, just looked it up. That's what it says in their terms: In the unlikely event of Revolut becoming insolvent, all precious metals holdings will be sold and your proceeds will be credited to your e-money account. www.revolut.com/legal/precious-metals/ So that's very reassuring👍 Cheers
I believe that, there‘re some updates regarding investments protection. It‘s now a total of up to 22k euros protection for all tradings in your Revolut account. Including stocks, Commodities, and saving accounts.
Might be, they do those updates regularly, but for me still not worth using it for stocks, given that you can't transfer your portfolio elsewhere. Cheers
Pretty much none, same as we've seen with other Crypto exchanges. Here is what it says on their website: 'When you buy cryptocurrency through the Revolut app, it will not be protected by the Financial Services Compensation Scheme (FSCS) or the Lithuanian Deposit Insurance Scheme and if you have a complaint it is not likely to fall within the scope of the jurisdiction of the Financial Ombudsman Service (FOS).' So better to keep it on your own hardware wallet to be safe. Cheers
Hello! @@SmartMoneywithKai I’m also investing in crypto using Revolute. It’s just so easy to use the application! In this moment do you think revolute is safer than Binance/coinbase, etc… I’m not talking about ledge or another cold wallet! I’m talking about the crypto exchanges vs revolute! Where is safer? Thank you very much!
@@constantinsomandru8244 Hi Constantin, this is really hard to say as we have no real data to make this decision on. It's just what we 'feel' and that's never a good advice. People felt safe with FTX & others and it went nowhere. So I can only reiterate cold wallet, but do have a little bit on Nexo who had been doing very well through all this, definitly not Revolut, much too expensive for my likeing and too little rewards compared to Nexo with their staking and card cashback. Cheers
I know, the interface is not the easiest for sure, that's why I use my IBKR with getquin to track my dividends and other brokerages. I prefer Trading 212 interface for sure 👌
Nice video, Kai ! I got one question. So up to what amount is my fiat money protected on Revolut bank account ? (not brokerege account yet main account) Thanks in advance.
Thanks a lot. Good question, if you are EU based then you are with Revolut UAB, in which case all your deposits held with Revolut Bank UAB are aggregated and the insurance coverage limit of EUR 100,000 applies to the total amount of your deposits. Hope this helps. Cheers
@@SmartMoneywithKai Hello, Kai again ! Just wanted to tell that I am waiting for IB to approve my account (I stopped at 2FA) Hope that won't take to long. I am from Croatia btw. Also, I want to ask you IB doesn't have joint insurance policy like Revolut (DriveWealth) brokerage account. So my funds are protected up to 250k or 500k as one account ? I will reallly aprecciate your response.
@@GordanZ Nice to hear and good move. If you with IB registered in Hungary which I guess you are like me as well, then deposits are protected up to €100K and US stocks up to $500K which should be plenty to get started😉
@SmartMoneywithKai Hello, Kai again ! I need your help. I did all verification needed to sign up to IBKR, and I have issues with last one about deposit money. I have transfered from Revolut to thier German accout with my reference. I get notice on my mail that amount is not enough. What amount we need to deposit ? Also, is there some problems with log in to IB ? When I go to their page and press log in, only says that is some error ? Do you have problems log ining in also ? I am from Croatia, EU resident, just to mention. I will appriciate your answer.
@@GordanZ Hi there and sorry to hear that. I have no problems logging in and personally transferred €10 before and had no issues with that. Maybe best to write to support directly as this seems like a technical issue. Good luck.
Hi there and my pleasure, glad you've enjoyed it. If you buy ETF's I suppose you are not buying them on Revolut as they don't offer ETF's, so in this case it depends which broker you use to buy them and up to which amount they protect you. Cheers
Oh wow, that's amazing, didn't hear about this before, nice. In this case maybe check your Revolut specific protection levels for Luxemburg, maybe they are also different, if not, you would still be exposed to the same risk as it applies to all their assets under management with DriveWealth so I would definitely suggest to check it out. Cheers
Hi, well, to be honest, as I mentioned in the video, since your protection with the new arrangement is anyways close to zero, quite frankly this would not really make any difference if someone else was to buy them. They would need to change back the arrangement and safeguarding of clients asset for it to be relevant, that's why I can't recommend Revolut for trading at this stage.
Hey kai i was wondering if I wanted to start buying stocks now on revolut and I have not made a revolut account yet whould that be safe i also live in Norway so I dont really know if its safe for me to buy stocks on revolut right now
Hi Dominik, Revolut is still an amazing platform and app. Just for stocks maybe not the best. To get started it’s fine but once your portfolio grows it’s really not the best option. I always recommend Interactive Brokers but otherwise Lightyear could be a great option for you and they allow you to transfer your portfolio to another broker later on if you so wish. Cheers
Thank you for the video! I have a question, does Interactive brokers have $500k insurance? and what other platforms you can recommend beside interactive brokers for lithuanians?
Hi there and thanks a lot. Yes, that's correct, they are member of SIPC insurance program so your US stocks are secured up to $500K. Otherwise I really like Lightyear, which works for all UK & EU clients, very nice interface and also part of SIPC. golightyear.com/eu/help/deposits-conversions-and-withdrawals/how-are-my-assets-protected
The Stock trading platform in revolut is completely inaccurate also, never ending bugs. This video flagged to me the huge decrease in investor protection also. Liquidating my position and joining another broker (no real big gains so happy to do so).
Thank you for the tips! I've managed to transfer my revolut positions with ACATS to IBKR. It took 4 business days to transfer them, although cost basis need some more time to be stated. It was easy as the guide you've mentioned, i hope cost basis will be ready soon to. Keep up the quality content, Best regards.
Hi Kratki, amazing to hear and thanks a lot for sharing, this is great insight and happy to hear all went smoothly and I am sure the cost basis should be updated eventually too. Can I ask how much the total cost of this transfer has been from IB and/or Revolut side? Cheers
There was no fees up to the point where i am at, but i think the transaction is not closed completly yet. I can see all my stocks on IBKR now, can also see the transfer transactions on Revolut, so my Revolut account is empty now. Although I got an email from IBKR that, "Drivewealth"is responsible for sending the cost basis of covered securities to IBKR. Please allow 7 - 15 days for this step to complete. In the interim, IBKR has assigned the closing price for each security as of the posting date, but will update with the actual cost basis once received". I'll let u know if there were costs when the cost basis are stated.
Great to hear that and really appreciate your update as I did not actually do it myself so would be great to hear from someone who actually did it. Thanks a lot.
@@SmartMoneywithKai The transfer seems to end although it wasn't easy at all. "Unfortunately cost Basis delivery is not required for non-USA Taxpayers and generally no information is delivered along with the ACATS. The biggest reason is that USA brokers have no knowledge of cost basis accounting for each jurisdiction". Long story short, ACATS work fine, if i'am correct it had no cost, but you have to add the cost basis of your stocks manually. In my case it was up to at least 250 transactions. The painful part is there is no way to copy data from csv nor anything. You have to manually type theese transactions. eg. cost basis, date, piece. You can't even copy a date from a excel, have to choose it from a built in calendar one by one. Still don't know whos gonna decide, approve if my data is valid.
@@krtkbrn13 Thanks a lot for sharing, this is good to know, though sad to hear that it didn't do that automatically and yes, sounds very painful having to do this manually:( At least you did it and protect your funds, I guess that is the main priority👍
Hi Kai, I just read that revolut is launching in Spain and FRance, TRADING PRO REVOLUT. Cost is 15 euros per month!! Do you know if this will be having a better coverage after the migration for the stocks and also after hours!? Thank youu!!!
Hi there and thanks for bringing this to my attention, didn't hear about it before. Just has a look, looks interesting, though I found that it will be regulated by Revolut Securities Europe UAB which basically means it's part of the same coverage as normal Revolut investing accounts, meaning pretty much no coverage in case of bankruptcy so for me that still makes it a no-go. Also 0.12% commission and €15 per month, makes it much more expensive than Interactive Brokers so for me it's not really interesting to be honest.
@@SmartMoneywithKai Thanks for your answer. yes, 15 e is a lot and it's only available for France and Spain as of now. I am still trying to talk to the costumer service, one just told me 'Please know after the migration 22k to be covered individually for stocks such in your case + the 500k among all costumers of trading after migration' . The guy on the chat is reassuring that 22k are protected in invested stocks, I told him that reads differnte and need clarification and he told me to take his word and save the chat... I will contact on another time, I still don't understand it...
@@relaxfilmpraylove524 Thanks for sharing and relying on a chat doesn’t sound very promising so yes, let’s wait for the fine print once it comes out in our respective countries 👍
@@SmartMoneywithKai Not promising at all. Will get this right even if I have to talk to the CEO :) Dont understand how it can read one thing and mean other...They are losing a lot of costumers.
Hi Kai, I am a revolut customer and I totally agree with what you said in the video a couple of months ago however even though today they offer EFTs in euro to buy US stocks, such as VGWD ETF, the fact that 1) you can´t transfer your portfolio to another broker 2) the 22k€ vs 100k € safety budget the rest of the brokers offer doesn´t encourage the long term investors to put in money through their app. It´s sad as I was a big fan of the app but I will definitely look for some other broker out there however I will stick with them as they`ve got some other brilliant non-investing features. Regards. Mauro
Hi Mauro, thanks a lot for sharing and I totally agree with you. Just too many reasons that speak against using them as a long-term broker of choice. I still use and love Revolut for everything else, recently upgraded to Ultra, but will definitely not use them anymore for investing. Cheers
Native Lithuanian here. Thank you for the video and I can agree 100 % . It is not safe anymore to be anymore, also knowing Lithuanian banking systems and how they manage to get bankrupt I highly suggest to avoid Revolut now.
Labas Joseph, thanks for sharing and yeah I also stay away from it at least for trading but still use it for daily banking/payment needs, but won't keep a massive balance there. Cheers
I already left Revolut last week as a European citizen. I Really liked the app. But two times moving since the Covi /Brexit is too much for me.Back into the EU. Lolz. You also have to file all these changes to your government/bookkeeper as well. So for now goodbye Revolut!
Hi there and thanks for sharing and yes, I agree with you, I also love the app overall and continue to use it, but this move was not very smart of them and they will probably have quite a number of users moving their investments elsewhere. Cheers
Hi Petros, I haven't used them as they are not available in my country sadly so I can't really review them. Can definitely recommend Lightyear also and made a video on them and Interactive Brokers which is my broker of choice. Cheers
@@SmartMoneywithKai thanks you for your answer .in Greece freedom24 and degiro is number1 but I don't trust them..like revolut now..I have interactivebrokers and I like your videos..good job👏
I am British, living in the UK and was impressed with your thorough research. Would a Revolute share dealing account be secure in my case and how much protection would I have?
Many thanks indeed. Here is what I found as you will be with LTD not UAB part of Revolut. Investment Protection The Third Party Broker is a member of the Securities Investor Protection Corporation (SIPC). All Instruments held in your Account with the Third Party Broker are eligible for protection by SIPC. If the Third Party Broker becomes insolvent, then your Instruments may be protected by SIPC coverage up to $500,000. However, SIPC does not protect you against losses caused by a decline in the market value of your Instruments. I like how they say 'may be protected by SIPC' so very poor wording and not very clear to be honest, that's why I am still not a fan of Revolut for trading, doesn't matter which country you live in, I think there are better options out there💯
Hi mate, are you with the EU version of Revolut or maybe not used their Stock feature before? I also got an in-app notification about it. I guess there is sadly no way around it legally and that's why I would really not recommend them for stocks anymore.
@@SmartMoneywithKai tbh I’ve only been able to trade stocks with them just a couple weeks ago and I’m guessing I’m already with the new rules. Are you saying that deposit protection now is only up to 22k?
@@fabiets158 I see, well yes, for your cash sitting on your investing account, your actual stocks are technically not anymore secured, if DriveWealth goes bust $500K is split between all EU Revolut stock users so you'll get nothing, that's why I left, not worth the risk.
Amazing video! When I read the email from Revolut I knew it was time to get out of there. I ended up selling all my positions and using the money to buy ETFs on another broker.
@@SmartMoneywithKai I am going with Trade Republic and Scalable 😆 I love the fact that in Trade Republic they pay interest for any money you have there that is not invested... With Scalable that only happens if you have the premium account
Hey kai i was wondering if did not like interactivebrookers as my brooker and I live in norway what brooker should i use. i think interactivebrookers was to complicating and I am only a beginer
I get it. Took me also a little bit of time. You can try their app called Global Trader which makes it more easy. I made a video on that. Otherwise as I’ve mentioned check out Lightyear. Great app too especially for UK & EU residents.
@@Blaze_playzz I would not recommend it from what I read and heard. Plus they don’t let you to transfer your portfolio out of there and into another broker in case you would want to one day.
Disgraceful from revolut, I will be transferring for sure. My only concern is that isn’t degiro and IBKR only able to offer protection of up to €20,000 due to European law?
Ciao Luca, yea, not a smart move by them. I don't use Degiro, but IBKR, if you are under the Hungarian branch, which most central EU clients will be allocated to, you will be secured up to €100K and $500K on your US holdings under SIPC. You can find all details here www.interactivebrokers.hu/en/general/security-investor-protection.php Cheers
The 20,000 euro insurance is for your not invested funds. The stocks are owned by you so in case of bankruptcy, your stocks will be transferred to another broker.
Thanks for sharing, to just get started it is ok, but later on would definitely suggest you to change to Lightyear, T212 or Interactive Brokers. Good luck
DO not buy any stocks or crypto on revolut they have 3 point speads on bid and ask and a 1.5% commission. Example you want a crypto price is 0.50 to buy it will be 0.53. You buy. You want to sell is will be 0.47 they make the money. There chat is all bots ND diffi ukt to talk to anyone. Tgey made a €580.00 error on a transaction still haven't connected with a real person to rectify it
Revolut has updated its pricing & removed the custody fee www.revolut.com/blog/post/custody-fee-removal-uk/
🟡 JOIN MY SMART MONEY CLUB
www.smartmoneywithkai.com/smartmoneyclub
I also think that this was one of the most stupid decision of Revolut. I can't imagine how many customers will they lose because of this.
Hi Jurij, it really was, but then again, a lot of people getting started with investing don't read the fine print I guess:)
Does this change still apply?
@@Evoprimals ye interested
This is the perfect synchronization, to keep me away from a mistake I was about to make. Thank you for good on point information!
Hi there and many thanks, great to hear that😉 Cheers
Hey do we need to fill in anything if we live in the Uk and where do we fill in these things help please
Great content. thanks
Cheers mate👋
Greetings from Lithuania!
I'm wondering if you have done a video breaking down Interactive brokers? Particularly, fees, contract clauses and protections that are offered to EU citizens
Hi Tadas, nice to see some Lithuanian's here😉 Not exactly to that detail yet, so something to keep in mind for future videos👌 Cheers
If I understand correctly, in the event of DriveWealth's bankruptcy, the $500k would be divided among all Revolut stock traders. Can you kindly confirm if my understanding is correct?
Hi Konstantinos, that's correct, that's the worrying part, which basically means in that event you would end up getting peanuts only.
Not correct as this wouldnt make any sense
@@yunussavas3481 I agree it doesn't make sense, but still, it is true: since Revolut will have only one account at DW, that whole account will be protected by the 500kUSD, meaning you'd get nothing in case DW goes bankrupt (unlikely, but possible). The T&Cs:
"After Migration: If DriveWealth become insolvent and the shares of RSEUAB customers cannot be returned, SIPC provides up to $500,000 compensation. This protection will apply to the entire holdings in the RSEUAB omnibus account. You will not be entitled to the individual SIPC protection which you have currently, and you might receive significantly less than you would have prior to the migration."
Please enlighten me if I understood it wrong?
would you still recommend revolute to UK users? Thanks
To be honest, not really, also their custody fee and limited selection for investment instruments, for me makes it less attractive than other brokers such as the one's I am using i.e. IBKR, Trading 212 & Lightyear.
@@SmartMoneywithKai thank you for responding, a good show of care for your channel! I’m very new and inexperienced in this regard, i use revolut a lot as am currently studying abroad and the lack of exchange fee is very handy. I want to delve in to stocks and was attracted by it’s supposed ease of use. I think i will look into some isa’s or trading 212 now. :)
My pleasure and absolutely, for travelling and free currency exchange it's perfect (just make sure not to exchange on the weekend as they charge a small fee for that) You will see both Lightyear & Trading 212 have an even better and easier interface for buying stocks & ETFs, which Lightyear also offers commission free which is great. Cheers
Hey do we need to fill in anything if we live in the Uk and where do we fill in these things help please
Hi there, as I understand if you are in the UK, you will stay with the UK entity and there won't be any changes for you👌
Hi ,thanks a lot for the good explanation, I have question because my investment is small and in the email I understand that up to 22 000 euro , our investment is safe or I am in mistake . And one more question for the transfer to Interactive broker - can we transfer only few shares or we must transfer all the portofolio , thanks a lot 😊
Hi Pavlov, thanks a lot. Great question, that's correct, but only your cash sitting in your Revolut investment account will be protected, your actual investments technically not as it's shared across all other Revolut users, so you will basically get nothin in case of them going bust (which is unlikely though but not impossible) You can transfer some positions, Interactive Brokers allows you to specific which, so you would need to clearly indicate those on the IB transfer page. Cheers
Great video, wish I'd seen it sooner. Is transferring still possible?
Hi there and many thanks, last week I checked and I still saw Drivewealth listed on IBKR so worth a try. Cheers
What would you recommend me to use if I live in Spain?
I would recommend either Lightyear to have a user-friendly interface or Interactive Brokers for more pro features. Cheers
Hi Kai, does this change on portfolio protection applies our savings account which is on money market through Fidelity?
Hi, your funds are still protected in the MMF up to €22K but only against insolvency of Revolut, if the MMF itself goes down, which is highly unlikely, then of course this would not be protected. Cheers
Thanks for this. Initiated it on August 3rd, and it reflected today (August 7th) in IKBR! Literally took them 2.5 business days. So relieved because if DriveWealth were to go bankrupt, I'd be screwed.
Amazing to hear and that's very efficient and smooth, nice👌 Thanks for the update and smart move👍
How did you move your stocks from Revolut to IKBR? As far as I know, now it's not possible due to the new changes
Hi, I made a video about it here. It might stop working soon, so better do it sooner than later. Cheers
@@agiverreviga4592 I started with this guide of Kai's. I initiated it only a week ago, so there probably still is some time. In Revolut however, you need to check your stocks section to make sure it hasn't been moved to the new entity yet. If it still says "Revolut Ltd" at the bottom, you still have a chance.
Great to hear and thanks for sharing👌
You can connect your Interactive Brokers account with Transferwise and then withdrawals are cheaper. Also deposits are faster.
Hi Björn, thanks for sharing. Didn't make to many withdrawals yet, but will keep that in mind. For deposits, yes, it's fast, but Revolut is cheaper with better FX rates as I usually send USD to IB. Cheers
I'm assuming that UK users are not affected* by this change?
Hi Chris, I believe not, though hope Revolut will finally get it's own banking license in the UK soon🤞
Hi, great explanation. Don’t you think that after this decision will many EU clients leave, and Revolut will try to change it to save the situation?
While im no finiancial expert, i think that will never happen. This decision is driven by a lot of factors and is not easy to make in the first place. The only thing that is possible ( but not probable) is revolut trying to leverage some lithuania laws for similar protections. Looking at one of the well established banks (Swedbank, it's not "local" but nordic capital, but it has been operating in the country for like 20 years), they seem to offer protections upto 22,000 eur for their investors, so i do not expect revolut to magicly 5x that.
Hi Martin, thanks a lot🙏I doubt it also, this must have been a very deliberate decision, and probably cost implications behind it as well, insurance does not come free:) Also, I doubt many people will read the fine print and really know their fund protection limits. I see so many other brokers out there with shady practices yet people keep signing up to them. So I hope you'll be one of the smarter ones to make the right decision to protect your funds😉 Cheers
Fully agreed💯
So what should I use now living in midle/east EU country?
Im a small or mabye for some very small investor.
Hi Peter, I would recommend Interactive Brokers. This is the most reliable and trustworthy broker. If you are really just starting out Lightyear could be a good alternative as well, but personally I use Interactive Brokers👍
@@SmartMoneywithKai Hi! Thank you for the video and the information! Is Lightyear better protected against an insolvency?
@@tomaspacifico My pleasure and yes, they are. Are Lightyear customers covered by EU wide asset guarantee schemes?
Yes, all Lightyear customers have their assets covered up to the amount of 20,000 EUR by the Estonian Investor Protection Sectoral Fund. Read more about this fund here.
Am I covered by the Securities Investor Protection Corporation (SIPC) protection in the US?
Your US securities are held with our partner Alpaca, who is FINRA regulated and is a registered member of the Securities Investor Protection Corporation (SIPC). This means your US securities are protected up to the value of $500,000 should Alpaca fail. You can read more about this directly on the SIPC website.
Just saw this now can still move?
Hi there, not sure, might be a bit late, but you could just give it a try. Cheers
Is it the same issue with commodities inside revolut app or only stocks?
Hi there, good question, just looked it up. That's what it says in their terms:
In the unlikely event of Revolut becoming insolvent, all precious metals holdings will be sold and your proceeds will be credited to your e-money account.
www.revolut.com/legal/precious-metals/
So that's very reassuring👍
Cheers
@@SmartMoneywithKai thank you for the quick reply! :)
@@Taoikonomika_einai_polycool My pleasure, anytime💯
So do you still recommend Revolut for us from EU?
I do, but not for stock trading. For day to day payments and currency conversion, absolutely👍
Thanks man. Your videos have provided me with so much clarity. Can't thank you enough ❤
Thanks mate, you're the real MVP for tuning in! 🌟 Thrilled my vids could clear things up. Cheers man🙏
Really very well explained, thank you for your warning!
Many thanks Natascha, much appreciated🙏
I believe that, there‘re some updates regarding investments protection. It‘s now a total of up to 22k euros protection for all tradings in your Revolut account. Including stocks, Commodities, and saving accounts.
Might be, they do those updates regularly, but for me still not worth using it for stocks, given that you can't transfer your portfolio elsewhere. Cheers
What if i live in uk any changes?
Nope, only affecting citizens of EEA👍
@@SmartMoneywithKaihey is revolut protected for 500k in uk or not ? Thanks!
@@yunussavas3481 Hi there, 500K I don't think so, believe 85K in UK and 20K in EU.
What about holding crypto on Revolut what kind of protection do the have
Pretty much none, same as we've seen with other Crypto exchanges.
Here is what it says on their website:
'When you buy cryptocurrency through the Revolut app, it will not be protected by the Financial Services Compensation Scheme (FSCS) or the Lithuanian Deposit Insurance Scheme and if you have a complaint it is not likely to fall within the scope of the jurisdiction of the Financial Ombudsman Service (FOS).'
So better to keep it on your own hardware wallet to be safe. Cheers
Hello! @@SmartMoneywithKai
I’m also investing in crypto using Revolute. It’s just so easy to use the application! In this moment do you think revolute is safer than Binance/coinbase, etc… I’m not talking about ledge or another cold wallet! I’m talking about the crypto exchanges vs revolute! Where is safer?
Thank you very much!
@@constantinsomandru8244 Hi Constantin, this is really hard to say as we have no real data to make this decision on. It's just what we 'feel' and that's never a good advice. People felt safe with FTX & others and it went nowhere. So I can only reiterate cold wallet, but do have a little bit on Nexo who had been doing very well through all this, definitly not Revolut, much too expensive for my likeing and too little rewards compared to Nexo with their staking and card cashback. Cheers
I find INBKS very user unfriendly. I can’t even find where the dividends go when they come in from their app
I know, the interface is not the easiest for sure, that's why I use my IBKR with getquin to track my dividends and other brokerages. I prefer Trading 212 interface for sure 👌
Nice video, Kai ! I got one question.
So up to what amount is my fiat money protected on Revolut bank account ? (not brokerege account yet main account)
Thanks in advance.
Thanks a lot. Good question, if you are EU based then you are with Revolut UAB, in which case all your deposits held with Revolut Bank UAB are aggregated and the insurance coverage limit of EUR 100,000 applies to the total amount of your deposits. Hope this helps. Cheers
@@SmartMoneywithKai Hello, Kai again ! Just wanted to tell that I am waiting for IB to approve my account (I stopped at 2FA) Hope that won't take to long. I am from Croatia btw.
Also, I want to ask you IB doesn't have joint insurance policy like Revolut (DriveWealth) brokerage account. So my funds are protected up to 250k or 500k as one account ?
I will reallly aprecciate your response.
@@GordanZ Nice to hear and good move. If you with IB registered in Hungary which I guess you are like me as well, then deposits are protected up to €100K and US stocks up to $500K which should be plenty to get started😉
@SmartMoneywithKai Hello, Kai again ! I need your help. I did all verification needed to sign up to IBKR, and I have issues with last one about deposit money. I have transfered from Revolut to thier German accout with my reference. I get notice on my mail that amount is not enough. What amount we need to deposit ? Also, is there some problems with log in to IB ? When I go to their page and press log in, only says that is some error ? Do you have problems log ining in also ? I am from Croatia, EU resident, just to mention. I will appriciate your answer.
@@GordanZ Hi there and sorry to hear that. I have no problems logging in and personally transferred €10 before and had no issues with that. Maybe best to write to support directly as this seems like a technical issue. Good luck.
What if you are living in the UK?
Hi Ali, as I understand in this case it should not make a difference to you, though I do hope they will soon get a full UK banking license🤞
Hey Kai, is it still possible to transfer stocks from Revolut to interactive brokers?
Hi there, I think you might still be lucky, I believe it's another two weeks or so. So if you do it quickly you should be good👌
We are in August, I started the request on the 3rd, and it went through on the 7th. Thus, 2.5 business days.
Well my account is from England but left country in 2020 …tried to change countries but tells me to shut down account and get a new one
Sorry to hear that and that's very unfortunate, hope you can find a way somehow🤞
Thanks for your helpful Video. As I am buying etf I guess I am not concerned. Am I right?
Hi there and my pleasure, glad you've enjoyed it. If you buy ETF's I suppose you are not buying them on Revolut as they don't offer ETF's, so in this case it depends which broker you use to buy them and up to which amount they protect you. Cheers
In the revolut app which i use for luxembourg i can buy etfs from ishares, vanguard and others.
Oh wow, that's amazing, didn't hear about this before, nice. In this case maybe check your Revolut specific protection levels for Luxemburg, maybe they are also different, if not, you would still be exposed to the same risk as it applies to all their assets under management with DriveWealth so I would definitely suggest to check it out. Cheers
If Drivewealth goes bankrupt and another bank buys it will we still lose our assets? Thanks in advance.
Hi, well, to be honest, as I mentioned in the video, since your protection with the new arrangement is anyways close to zero, quite frankly this would not really make any difference if someone else was to buy them. They would need to change back the arrangement and safeguarding of clients asset for it to be relevant, that's why I can't recommend Revolut for trading at this stage.
Hey kai i was wondering if I wanted to start buying stocks now on revolut and I have not made a revolut account yet whould that be safe i also live in Norway so I dont really know if its safe for me to buy stocks on revolut right now
Hi Dominik, Revolut is still an amazing platform and app. Just for stocks maybe not the best. To get started it’s fine but once your portfolio grows it’s really not the best option. I always recommend Interactive Brokers but otherwise Lightyear could be a great option for you and they allow you to transfer your portfolio to another broker later on if you so wish. Cheers
@@SmartMoneywithKai I looked at lightyear and it hasent came to norway yes
I see, some hopefully soon. Maybe give GlobalTrader App from Interactive Brokers a chance, much easier interface.
Thank you for the video!
I have a question, does Interactive brokers have $500k insurance?
and what other platforms you can recommend beside interactive brokers for lithuanians?
Hi there and thanks a lot. Yes, that's correct, they are member of SIPC insurance program so your US stocks are secured up to $500K. Otherwise I really like Lightyear, which works for all UK & EU clients, very nice interface and also part of SIPC.
golightyear.com/eu/help/deposits-conversions-and-withdrawals/how-are-my-assets-protected
Hey i thought you said 22k im still confused
But what are the chances of Revolut going bankrupt?
Slim, but that's what they said about FTX too 😉 I always prefer being safe than being sorry. Cheers
Will this apply to revolut crypto as well?
Hi there. Crypto has never been protected so it doesn’t make a difference anyways. Cheers
Thanks revolut it took some time but appreciate the help
Awesome to hear that🙌
The Stock trading platform in revolut is completely inaccurate also, never ending bugs. This video flagged to me the huge decrease in investor protection also. Liquidating my position and joining another broker (no real big gains so happy to do so).
Yes, sadly that's the truth, still love and use their platform, but definitely not for stocks👍
Thank you for the tips! I've managed to transfer my revolut positions with ACATS to IBKR. It took 4 business days to transfer them, although cost basis need some more time to be stated.
It was easy as the guide you've mentioned, i hope cost basis will be ready soon to. Keep up the quality content, Best regards.
Hi Kratki, amazing to hear and thanks a lot for sharing, this is great insight and happy to hear all went smoothly and I am sure the cost basis should be updated eventually too. Can I ask how much the total cost of this transfer has been from IB and/or Revolut side? Cheers
There was no fees up to the point where i am at, but i think the transaction is not closed completly yet. I can see all my stocks on IBKR now, can also see the transfer transactions on Revolut, so my Revolut account is empty now. Although I got an email from IBKR that, "Drivewealth"is responsible for sending the cost basis of covered securities to IBKR. Please allow 7 - 15 days for this step to complete. In the interim, IBKR has assigned the closing price for each security as of the posting date, but will update with the actual cost basis once received". I'll let u know if there were costs when the cost basis are stated.
Great to hear that and really appreciate your update as I did not actually do it myself so would be great to hear from someone who actually did it. Thanks a lot.
@@SmartMoneywithKai The transfer seems to end although it wasn't easy at all. "Unfortunately cost Basis delivery is not required for non-USA Taxpayers and generally no information is delivered along with the ACATS. The biggest reason is that USA brokers have no knowledge of cost basis accounting for each jurisdiction". Long story short, ACATS work fine, if i'am correct it had no cost, but you have to add the cost basis of your stocks manually. In my case it was up to at least 250 transactions. The painful part is there is no way to copy data from csv nor anything. You have to manually type theese transactions. eg. cost basis, date, piece. You can't even copy a date from a excel, have to choose it from a built in calendar one by one. Still don't know whos gonna decide, approve if my data is valid.
@@krtkbrn13 Thanks a lot for sharing, this is good to know, though sad to hear that it didn't do that automatically and yes, sounds very painful having to do this manually:( At least you did it and protect your funds, I guess that is the main priority👍
Thanks for this video, I had skipped over most of that email. Keep up the good work. Used your IBKR referral code!!
Hi Tim, amazing to hear that and much appreciated🙏
Hi Kai, I just read that revolut is launching in Spain and FRance, TRADING PRO REVOLUT. Cost is 15 euros per month!! Do you know if this will be having a better coverage after the migration for the stocks and also after hours!? Thank youu!!!
Hi there and thanks for bringing this to my attention, didn't hear about it before. Just has a look, looks interesting, though I found that it will be regulated by Revolut Securities Europe UAB which basically means it's part of the same coverage as normal Revolut investing accounts, meaning pretty much no coverage in case of bankruptcy so for me that still makes it a no-go. Also 0.12% commission and €15 per month, makes it much more expensive than Interactive Brokers so for me it's not really interesting to be honest.
@@SmartMoneywithKai Thanks for your answer. yes, 15 e is a lot and it's only available for France and Spain as of now. I am still trying to talk to the costumer service, one just told me 'Please know after the migration 22k to be covered individually for stocks such in your case + the 500k among all costumers of trading after migration' . The guy on the chat is reassuring that 22k are protected in invested stocks, I told him that reads differnte and need clarification and he told me to take his word and save the chat... I will contact on another time, I still don't understand it...
@@relaxfilmpraylove524 Thanks for sharing and relying on a chat doesn’t sound very promising so yes, let’s wait for the fine print once it comes out in our respective countries 👍
@@SmartMoneywithKai Not promising at all. Will get this right even if I have to talk to the CEO :) Dont understand how it can read one thing and mean other...They are losing a lot of costumers.
Agreed, this is really messed up and not giving confidence to users at all:(
Hi Kai, I am a revolut customer and I totally agree with what you said in the video a couple of months ago however even though today they offer EFTs in euro to buy US stocks, such as VGWD ETF, the fact that 1) you can´t transfer your portfolio to another broker 2) the 22k€ vs 100k € safety budget the rest of the brokers offer doesn´t encourage the long term investors to put in money through their app. It´s sad as I was a big fan of the app but I will definitely look for some other broker out there however I will stick with them as they`ve got some other brilliant non-investing features. Regards. Mauro
Hi Mauro, thanks a lot for sharing and I totally agree with you. Just too many reasons that speak against using them as a long-term broker of choice. I still use and love Revolut for everything else, recently upgraded to Ultra, but will definitely not use them anymore for investing. Cheers
Native Lithuanian here. Thank you for the video and I can agree 100 % . It is not safe anymore to be anymore, also knowing Lithuanian banking systems and how they manage to get bankrupt I highly suggest to avoid Revolut now.
Labas Joseph, thanks for sharing and yeah I also stay away from it at least for trading but still use it for daily banking/payment needs, but won't keep a massive balance there. Cheers
I already left Revolut last week as a European citizen. I Really liked the app. But two times moving since the Covi /Brexit is too much for me.Back into the EU. Lolz. You also have to file all these changes to your government/bookkeeper as well. So for now goodbye Revolut!
Hi there and thanks for sharing and yes, I agree with you, I also love the app overall and continue to use it, but this move was not very smart of them and they will probably have quite a number of users moving their investments elsewhere. Cheers
We are in 2024 now BE honest , is it still safe now REVOLUT ? to INVEST ?
Safe yes. Protection level not the best in my opinion. Would prefer Interactive Brokers, Trading 212, Lightyear or Trade Republic for that👌
@@SmartMoneywithKaidoes this apply to UK or Switzerland?
@@Mrsotaf Hi, it seems not, Switzerland and UK fall under Revolut LTD👌
Excellent piece of advice. Thank you.
Hi Piotr, many thanks and much appreciated🙏
Life saving video
Awesome to hear that 🙌
Same other blockers..freedom 24..degico..?can you make a review?
Hi Petros, I haven't used them as they are not available in my country sadly so I can't really review them. Can definitely recommend Lightyear also and made a video on them and Interactive Brokers which is my broker of choice. Cheers
@@SmartMoneywithKai thanks you for your answer .in Greece freedom24 and degiro is number1 but I don't trust them..like revolut now..I have interactivebrokers and I like your videos..good job👏
@@PetrosTriantafyllidis That's very nice of you to say, ευχαριστώ
I am British, living in the UK and was impressed with your thorough research.
Would a Revolute share dealing account be secure in my case and how much protection would I have?
Many thanks indeed. Here is what I found as you will be with LTD not UAB part of Revolut.
Investment Protection
The Third Party Broker is a member of the Securities Investor Protection Corporation (SIPC). All Instruments held in your Account with the Third Party Broker are eligible for protection by SIPC. If the Third Party Broker becomes insolvent, then your Instruments may be protected by SIPC coverage up to $500,000. However, SIPC does not protect you against losses caused by a decline in the market value of your Instruments.
I like how they say 'may be protected by SIPC' so very poor wording and not very clear to be honest, that's why I am still not a fan of Revolut for trading, doesn't matter which country you live in, I think there are better options out there💯
@@SmartMoneywithKai
Thanks.
Hi Kai, I haven’t received anything so far. Guess we’ll wait and see
Hi mate, are you with the EU version of Revolut or maybe not used their Stock feature before? I also got an in-app notification about it. I guess there is sadly no way around it legally and that's why I would really not recommend them for stocks anymore.
@@SmartMoneywithKai tbh I’ve only been able to trade stocks with them just a couple weeks ago and I’m guessing I’m already with the new rules. Are you saying that deposit protection now is only up to 22k?
@@fabiets158 I see, well yes, for your cash sitting on your investing account, your actual stocks are technically not anymore secured, if DriveWealth goes bust $500K is split between all EU Revolut stock users so you'll get nothing, that's why I left, not worth the risk.
Amazing video! When I read the email from Revolut I knew it was time to get out of there. I ended up selling all my positions and using the money to buy ETFs on another broker.
Hi mate, thanks a lot, much appreciated and smart move. Which broker are you going with next?
@@SmartMoneywithKai I am going with Trade Republic and Scalable 😆
I love the fact that in Trade Republic they pay interest for any money you have there that is not invested... With Scalable that only happens if you have the premium account
Awesome and thanks for sharing. Two great platforms so you are definitely in good hands there👌
Hello sir i am from Bangladesh,,
Hello Sir, I am from Gerrmany😉
Hey kai i was wondering if did not like interactivebrookers as my brooker and I live in norway what brooker should i use. i think interactivebrookers was to complicating and I am only a beginer
I get it. Took me also a little bit of time. You can try their app called Global Trader which makes it more easy. I made a video on that. Otherwise as I’ve mentioned check out Lightyear. Great app too especially for UK & EU residents.
@@SmartMoneywithKai Do you think I should use etoro
@@Blaze_playzz I would not recommend it from what I read and heard. Plus they don’t let you to transfer your portfolio out of there and into another broker in case you would want to one day.
@@SmartMoneywithKai which one whould you recimend
@@Blaze_playzz So as mentioned before, Interactive Brokers, you can try GlobalTrader app, is the same account as IB, but better interface. Cheers
Disgraceful from revolut, I will be transferring for sure. My only concern is that isn’t degiro and IBKR only able to offer protection of up to €20,000 due to European law?
Ciao Luca, yea, not a smart move by them. I don't use Degiro, but IBKR, if you are under the Hungarian branch, which most central EU clients will be allocated to, you will be secured up to €100K and $500K on your US holdings under SIPC. You can find all details here www.interactivebrokers.hu/en/general/security-investor-protection.php Cheers
The 20,000 euro insurance is for your not invested funds. The stocks are owned by you so in case of bankruptcy, your stocks will be transferred to another broker.
i still might use ot cuz it's my first time into investing, and im not really investing big sums but thank you!
Thanks for sharing, to just get started it is ok, but later on would definitely suggest you to change to Lightyear, T212 or Interactive Brokers. Good luck
@@SmartMoneywithKaithanks i will keep in consideration your hint
DO not buy any stocks or crypto on revolut they have 3 point speads on bid and ask and a 1.5% commission. Example you want a crypto price is 0.50 to buy it will be 0.53. You buy. You want to sell is will be 0.47 they make the money. There chat is all bots ND diffi ukt to talk to anyone. Tgey made a €580.00 error on a transaction still haven't connected with a real person to rectify it
I also recommend other brokers like Interactive Brokers, Lightyear or Trading 212 to buy stocks instead of Revolut👌
What if Russia conduct a special military operation in Lithuanian? To claim land for the thousands of Russians there?
Hi there, I’m not a political channel but just remember, Lithuania is a EU & NATO county so that should give enough confidence😉
Thank you so much for clarifying and sharing this! 🫶🏻
My pleasure Narin and glad you found it useful🙏