I agree there is a difference but not quite 10-20$, Im using euro, and the diffrence is up to 5 euro at most. Its always less in Revoluts info. I dont see history for any crypto currency except Bitcoin in Revoluts data, so i cant say if its inaccurate. Why does support says this is technical problem, when its obviously not? Tell us how is this going when there is news, thanks!
Hi there. Thank you for your feedback. Let me clarify thereās not weekend mark up on cryptocurrencies as are not in the same Forex market as the rest currencies.
Thanks for your reply @anon33247966, however can you now explain to all of us why the considerable difference between the rate shown on the Revolut app and the Bitstamp exchange that Revolut uses?
I was looking to find out which exchange they used, and I thought from what I read they used multiple exchanges and gave a price that averaged across a few of them rather than just one?
Looking at bitside now and revolut app the buy side looks about right, the sell side is showing 0.5% off
The buy side seems right, the $16310 buy orders on bitstamp now + 1.5% commission gives the $16550 its being offered at.
If I sell 1 bitcoin Iām being offered $15994, which is 2% less, so 0.5% off after commission fee, although right now there are very few sell orders vs buy orders (still should be 16310 for sell).
So the sell is approx. 0.5% off, might be worth checking again later when the buy/sell orders are similar etc.
Well checking the market now and its not such a good story. Currently selling on Bitstamp @ $16800, but if i trade on the app I am being offered $16166. If i take off the 1.5% commision i should be getting closer to $16550!
So i am losing around (4% minus 1.5% commision) 2.5% on selling bitcoin.
Not sure if its just a time lag as during the last hour its jumped 2.2% - if it is might be handy when the falls happen, but that would be bad for Revolut if you could buy/sell an hour late on the proice an hour ago!
If I buy right now with $16800 i get 1.006 bitcoin. will check on the variation in a couple of hours!
well something looks broken for sure, bitstamp just hit 16950 and the app is still offering $16166, so if you are hoping to sell as prices go up fast doesnt look like you can
I donāt think its a technical issue - more of a rip off
It seems that Revolut has a $500-$600 spread on its BTC prices, while the spread on bitstamp is around $3. This means that Revolut can effectively lock in a large profit ($500) on every bitcoin that is exchanged with them.
In sum, if youāre buying Cryptocurrencies on Revolut, you wonāt break even on a transaction until your position moves AT LEAST 3-6% in your direction (Depending on the cryptocurrency)
not entirely sure if its false advertising; Iāve reached out to support various times to understand their methodology. Theyāve given me the same answer each time:
āour rates are derived from our exchange partner. They are calculated as a Volume Weighted Average Price (VWAP) with a mark-up of 1.5% to account for trading volatility and the price you see in the app is locked in at the time of the exchange. Please refer to our FAQs for more infoā
My guess is that they have a āFairā value for the rate based on their VWAP (still no clue how they calculate this - what time window, etc) and add an extra 1.5% on each side for ātrading volatilityā
For example BTC/USD is currently trading around 16,600. Lets say Revolutās VWAP price is somewhere around 16,000. Revolut should then give a market of
15,760 at 16,240 (1.5% on each side).
This is $480 spread represents 3%. However according to Revolutās fees, this spread should never be larger than 3% regardless of the Price or volatility in the market.
I wouldnāt worry about the notional value of Revolutās rate as other exchanges have their own prices. However this spread shouldnāt be larger than 3% (2 x 1.5%). I have seen this spread be larger numerous times, and itās even larger for other cryptocurrencies. Also, I wouldnāt be surprised if this spread increased even more in volatile moments.
But I guess, itās a lowest for a service which offers instant conversion to a regular euro debit card. Basically allows to pay from bitcoin balance with a regular card in euros.
All previous cards like that charged 10-30% fees in total!!!
And all cheap exchanges takes a day or more to convert bitcoins to euros.
So as always itās convenient and fast but for a fee.
im sure there is a missunderstanding somewhere but im not sure if its in us - the users or them - Revolut. Either way im happy of this service no matter the fees, its really amazing how easy they made it.
Iām a big fan of Revolut in general. Have recommended the service to numerous friends. However, by looking at the spreads of these rates, the fees for this service are not 1.5%
My biggest worry is that when volatility increases, Iām sure Revolut will also increase their spread from 5% to maybe 10% making it almost impossible (ridiculously expensive) to either put in or pull out your money.
If theyāre pushing for āTransparencyā and thus charge 1.5% fees for āvolatilityā, then the spread for any of these crypto-currencies should not exceed 3% at any given point.
Got the same response , they calculate the price on a weighted average, add 1.5% for volatility and the 1.5% fee, so always 3% added so saying 1.5% is misleading.
It only seems to apply when you sell your bitcoin that you get stuffed, when you buy you get around 1.5% off, so looks like they are cashing in on people selling bitcoins