How Much Does It Cost to Exchange Currency on Revolut?

When considering currency exchange options, Revolut stands out as a popular choice due to its digital-first approach and competitive rates. However, understanding the costs associated with using Revolut for currency exchange is crucial for making the most of this financial tool. This article delves into the costs of exchanging currency on Revolut, including fees, exchange rates, and additional charges that users may encounter.

Revolut's Currency Exchange Features
Revolut offers a streamlined way to handle foreign currencies through its mobile app, which includes features like real-time exchange rates and no hidden fees for basic transactions. Users can exchange currencies within the app at interbank rates, which are the same rates that banks use when trading between themselves.

Costs Associated with Currency Exchange on Revolut

1. Standard Exchange Rates
   Revolut provides users with access to interbank exchange rates, which are typically better than the rates offered by traditional banks. This is a major advantage as these rates are close to the real market rate. For many users, this can result in significant savings compared to using a bank or other financial services.

2. Fees for Currency Exchange
   While Revolut offers competitive rates, there are fees to consider:

   • Standard Users: For those using Revolut's Standard (free) plan, there is a limit to the amount of currency that can be exchanged at interbank rates per month. Exchanging amounts beyond this limit incurs a fee of 0.5% of the amount exchanged.
   • Premium and Metal Users: Users with Premium or Metal plans benefit from higher limits and no additional fees for currency exchange up to the limit of their plan.

3. Weekend Markup
   Revolut applies a 2% markup on exchange rates during weekends (Saturday and Sunday). This is due to the fact that the foreign exchange market is closed during weekends, and Revolut needs to account for potential fluctuations in rates. This markup is applied to protect against market volatility.

4. ATM Withdrawal Fees
   For users who exchange currency and then withdraw cash from an ATM, Revolut applies a fee if the withdrawal exceeds the limit of their plan. For Standard users, the fee is 2% of the amount withdrawn beyond the free withdrawal limit.

5. Currency Exchange Outside the App
   If users choose to exchange currency outside the Revolut app (e.g., through other services or ATMs not associated with Revolut), they might encounter additional fees. These are not charged by Revolut but rather by the third-party service provider.

Example Cost Breakdown

To provide a clearer picture, let's consider a scenario:

• Amount Exchanged: $1,000

• Interbank Rate: 1 USD = 0.85 EUR

• Total Amount Received: 850 EUR

  • Standard User (Beyond Free Limit): $1,000 x 0.5% = $5 fee
  • Weekend Exchange: If exchanged during the weekend, the markup would be $1,000 x 2% = $20 additional fee
  • Total Cost (Weekend Exchange): $5 + $20 = $25
  • Total Amount Received After Fees: 850 EUR - $25 = 825 EUR (considering fees deducted in USD)

Tips to Minimize Currency Exchange Costs on Revolut

1. Monitor Exchange Rates: Check rates regularly and try to exchange currency when the rates are favorable.
2. Plan Withdrawals: Be mindful of the weekend markup and try to avoid exchanging large amounts during these periods.
3. Upgrade Plans: Consider upgrading to a Premium or Metal plan if you frequently exchange large sums, as this can eliminate some fees and provide additional benefits.

Conclusion
Revolut provides a convenient and cost-effective way to handle currency exchange with its competitive interbank rates and user-friendly app. However, it is important to be aware of potential fees, especially during weekends and when withdrawing cash from ATMs. By understanding these costs and planning accordingly, users can maximize the benefits of using Revolut for their currency exchange needs.