Revolut launches stocks and shares Isa and UK-listed ETFs to get Britons investing in home-grown companies

Revolut customers can now open a stocks and shares Isa on its banking app and invest in a crop of ETFs.

The digital bank with 11million customers in Britain has today launched a stocks and shares Isa to attract more investors.

At the same time Revolut has teamed up with fund managers Vanguard, Blackrock iShares, Amundi and Invesco to offer over 100 UK-listed ETFs.

The stocks and shares Isa as well as the ETFs will be offered through Revolut’s trading and investing arm, Revolut Trading.

Customers will be able to invest in a few taps using the bank’s app starting from £1.

The launch comes as the Government ramps up its efforts get Britons investing in the stock market, with potential cuts to the cash Isa allowance on the horizon.

Chancellor Rachel Reeves is expected to announce cuts to the amount of money that can be invested in a cash Isa next week in her Mansion House speech.

Revolut said: ‘Britons have historically had a lower appetite for investing, potentially missing out on opportunities to build long-term wealth.

‘Revolut is normalising investing as a core part of daily personal finance, making it more accessible than ever to trade either as part of a regular trading account or within a tax-efficient wrapper.’

Yana Shkrebenkovam, chief executive of Revolut Wealth and Trading UK, said: ‘Our UK customers can grow their money in a tax-efficient investment Stocks and Shares Isa, put their money back into homegrown companies.’

It follows the likes of rival bank Monzo which last month launched 11 Blackrock iShares ETFs through its Monzo investments.

But Revolut’s offering gives investors to a broader range of ETFs. Customers can already invest in global stocks through Revolut’s General investment account, but it is the first time they will be able to invest using a stocks and shares Isa.

The stock and shares Isa wil have the added feature of being flexible Isa, so investors will be able to withdraw and replace funds at any time, without impacting their yearly allowance.

Isa transfers will be made available to customers in the coming weeks so investors can transfer their investments from other providers to Revolut.

Interest on uninvested cash within customers’ Isa pots is also planned as a feature according to Revolut.

How much will it cost?

Revolut’s stocks and shares Isa fees for orders are the same as its existing General Investment Account and are based on what plan you have with it. 

These plans range between £3.99 and £45 per month.

If you are on a Standard plan, which is free, you get one free trade. 

Plus subscribers who pay £3.99 a month get three free trades. 

If you are a Premium subscriber, paying £7.99 a month you have five free trades while Metal and Ultra customers who pay £14.99 and £45 per month respectively, have 10 fee-free trades per month.

Outside of these fee-free deals, investors will pay a charge of 0.25 per cent per order beyond or 0.12 per cent of the order amount for Ultra customer.

For example, a £1,000 investment would have a fee of £2.50 per order for Standard, Plus, Premium and Metal users and £1.20 for Ultra users on top of the subscription plan fees.

Vanguard by comparison, offers a wide range of low-cost index tracking funds, has an account charge of 0.15 per cent. 

Vanguard has reduced fees on some of its fixed income ETFs as of 1 July. They now range from 0.07 per cent to 0.12 per cent.

While AJ Bell has a £5 dealing charge for ETFs and a 0.25 per cent annual account charge. Trading 212 offers fee free trading for ETFs.

For subscription-based account fees and access to a wide range of investments, including stocks and shares, you can consider Interactive Investor. Its flat fees allow investors to keep costs low as their pot grows. Read more in our Interactive Investor review.