3,5% Fee for buying cryptocurrencies


#1

Hi,

I would like to know what happen with the cryptocurrency features.

It written that its a 1,5% fee for buying BTC ETH or LTC on revolut but its not true.

For example when i bought ETH => the rate was around 383 EUR, I put 100 EUR but the change rate applied was 397.5 EUR.

383 / 397.5 * 100 = around 3,5% fees instead of 1,5%?

What happening?

Regards,
Denis


#2

Hi Denis,

Your observation is correct, but you need to keep in mind that since we work with a number of exchanges, there will always be 2 different prices ie. bid / ask. The 3.5% difference you see there is a combination of the spread charged by the exchange at that exact moment in time and our 1.5% fee.

We will be releasing a blog post soon which will explain all of this in more detail.

Best,
Rob


#3

I feel cheated by this. The price that shows up should include all fees. I thought I was getting a below market price, and it silently increased the price without any confirmation from me

Not to mention that you can’t actually withdraw the cryptos.


#4

Hey Rob,

Thanks for your explanation! However, by looking at the Bitstamp book as well as historical/current data ( https://data.bitcoinity.org/markets/spread/7d/USD?c=e&f=m10&st=log&t=l ) the average exchange spread (Bitstamp) is only 0.12%. So according to your explanation, the Revolut spread should be around 1.6 - 1.7% wide.


#5

Not 100% accurate - the price you are shown on screen is computed as a VWAP (volume weighted average price) which means that high volatility causes this average to diverge from the average exchange spread you mention.


#6

Hey Rob!

Thanks for the info! Could you possibly shed some light on how your VWAP is calculated (timeframe, etc). Also, I understand that with volatility Bitstamp’s spread will naturally increase, but it will not increase to 2% (And never has).

If you say that the 3.5% spread is a combination your 1.5% fee and Bitstamp’s spread. Then you’re implying that Bitstamp’s spread is 2% which is simply not true. Please see the chart below for proof.

Thanks!