Please have a look below for an extract of Revolut’s FAQ:
At the weekend (Friday 23:59 - Sunday 23:59) we apply a small mark up on the spot rate as the Forex markets are closed. We take the rate from Friday 23:59 and apply a 0.5% mark up on major currencies and 1.0% on other currencies to protect the company from potential losses due to a large fluctuation in the rate. For illiquid currencies like Russian Ruble and Thai Baht, there is 1.5% mark up on weekend.
The bid/offer spread is negligible on liquid currency pairs, so it’s a red herring in this context. It certainly doesn’t create a range. The range is caused by the movement of market price throughout the day.
Mid-market and interbank are not mutually exclusive. Compare XE.com to www.truefx.com. The latter is true wholesale interbank rates, on which you can trade if you have the right software and trading account.
We can assure you that Revolut isn’t putting an extra markup to what we say on our FAQs and the weekend rate is only 1% and 0.5% for major currencies.
The reason why you feel like you are getting extra percentage points charged is because in some cases (usually rare cases) the difference between the mid-market rate (as shown on XE) and the interbank bid rate can be slightly larger than expected.
What people see online is the mid-market rate, i.e. the average between the bid and offer rate. This is because when you go to search up a currency pair the website doesn’t know whether you’re looking to buy or sell that currency so it just gives the middle.
These interbank bid rates are usually quite hard to find online as they are mainly used by the largest mutual and hedge funds in the world as well as large multinational corporations who have millions (if not billions) of dollars. But Revolut is able to pass on this rate to you with no markup except for what is stated on our FAQs, which during the weekends is 0.5% for the major currencies and 1% for the other currencies.
Revolut Ltd (No. 08804411) is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 (Firm Reference 900562)..
Registered address: 7 Westferry Circus, Canary Wharf, London, England, E14 4HD.
Insurance related-products are provided by Revolut Travel Ltd which is authorised by the Financial Conduct Authority to undertake insurance distribution activities (FCA No: 780586) and by Revolut Ltd, an Appointed Representative of Revolut Travel Ltd in relation to insurance distribution activities. Revolut Ltd is an Appointed Representative of Lending Works Ltd for the activity of “operating an electronic system for lending”. Trading and investment services are provided by Revolut Trading Ltd (No. 832790). Revolut Trading Ltd is an appointed representative of Sapia Partners LLP (No 550103) which is authorised and regulated by the Financial Conduct Authority. Revolut Trading Ltd is a wholly owned subsidiary of Revolut Ltd.