Multi-currency accounts

(Alban Roger) #21

Every company subsidises somehow their “free” offering so nothing is trully free but it’s irrelevant in my point. My point is interbank FX, no meaningful spread, not even 25bps.

(Alban Roger) #22

Indeed they use Currency Cloud but, from a user point of view, what difference does it make? Likewise, why could not Freetrade do the same?

And, it’s just a matter of time before Revolut to take this in-house the same way as their banking licence application and them ditching their supplier “Global Processing Services” to bring also internalise payment processing.

(Vladislav Kozub) #23

Valid point, but I guess matching is not always a solution for all. It does come down to the sustainability of the service provision. Freetrade’s vision is not about catching the users in short-term, offering “everything” for free and then introducing price increases post factum. And the Revolut’s offer is also not clear at the moment, hence inappropriate to compare just as yet. Granted, Revolut is a fintech behemoth and has grown exponentially in the past years, but I personally would do not have that trust as I have in Freetrade.

To give another comparison, Monzo’s user retention in the UK is about 30 to 40 per cent better than Revolut’s (based on weekly active users reports), and that is given the latter has more customers (although I could be a bit outdated on that fact). Having 2,000,000 users and a potential to secure 3,000,000 by the end of the year is not a representation of an utterly successful business, it should all be about happy customer retention and ability to achieve better profit margins. As it stands, Revolut is not quite there yet.

But it would most certainly be interesting to compare Revolut to Freetrade once the former comes up with a ready-to-ship product.

Also, thinking of 25bps you mentioned, I want to insert one of my favourite posts on this entire forum (guilty of quoting it too often :grin:):

(Rob Nicholson) #24

Worth noting that Revolut charge the same 0.5% FX charge on total transactions above a certain amount in a month. I believe Transferwise also offered this rate, but have lowered it to 0.35% now. 0.5% above interbank is highly competitive!

Freetrade and Revolut will build different products and have different business models (as Monzo & Revolut have). They will all do well IMO as they offer superior products and pricing than the incumbents… and are cool!! :sunglasses:

(Alban Roger) #25

Revolut don’t charge premium users 0.5% above any amount, it’s still free for them no matter the volume. Anyone doing serious investing/trading with Revolut will be premium users paying zero FX transaction charges on unlimited transaction amounts. The premium yearly fee is peanuts compared with the savings. That’s the Freemium principle.