Is Revolut regulated?
Trying to find out whether Revolut is regulated? Not sure which authorities are overseeing Revolut and why this matters?
Rest assured, the lack of regulation at Revolut is not a reason for worry. Our brokerage experts have determined that Revolut is a fully regulated broker, overseen in UK, Lithuania, USA, Singapore. We gathered all the information on the regulatory profile of Revolut and will explain why this matters.
I have personally tested several brokers globally and I am familiar with the regulatory and licensing procedures of at least a dozen financial authorities globally. Here are my key insights into the regulatory status of Revolut as of August 2024:
- Revolut operates under a very strict regulator, which is vital for the safety of your money if you have an account with the broker.
- Revolut must separate client funds/assets from its own operations; this makes all the difference for the safety of your investments.
- Explore the services of Revolut in our comprehensive Revolut review for 2024 and browse other top-tier regulated brokers with our unique Find My Broker tool.
Revolut has top-tier regulation
Think of a broker with strict regulatory oversight like a lifeguard at the beach. Just as the lifeguard keeps you safe in the water, offering immediate help when you need it, brokers operating with top-tier regulation protect your investments. They make sure your investments are secure and handled with integrity and transparency.
Revolut has the following regulation:
- All clients - Financial Conduct Authority (FCA)
Why does all this matter? We are contacted by an alarming number of people who ended up working with unregulated brokers and they share with us some sad and frightening stories. Here’s an example.
Marco invested a substantial amount using what appeared to be a credible online trading platform. Initially, his investments showed gains, and he was able to make several withdrawals without issues. Encouraged, he increased his investments, but when he tried to withdraw some profits after a successful trade, his requests went unanswered, and customer service became unreachable. Further investigation revealed the broker was not regulated by any financial authority. Eventually, the platform vanished overnight, taking John's investments with it, leaving him with no recourse to recover his funds.
Choosing a broker with top-tier regulation means you're in safe hands. This level of strict oversight ensures that your investments are protected, you're getting fair pricing, and trading conditions are transparent and favorable.
Client fund segregation: your ultimate safeguard
As a broker with top-tier regulation, Revolut is legally required to keep the funds and assets of its clients separate from its own money. This is a game changer in terms of the safety of your investments.
Client fund segregation is like having your money in a separate safe from Revolut’s own cash. Thus, if your broker ever runs into financial trouble, your funds won't be touched to settle their debts - they're entirely off-limits. It’s a crucial setup because it protects your money, ensuring that what you’ve invested stays secure and accessible only to you. This segregation is a requirement imposed by top-tier regulators and not something you can request your broker to do. You will only have access to this safety net if your broker has the appropriate regulation.
In the highly unlikely event that Revolut commits fraud and uses client assets for its own purposes, you can still recover your money if you have access to investor protection.
Revolut transmits client orders to DriveWealth LLC, a company that provides the trading platform and services for Revolut Trading. Sometimes Revolut refers to them as "Third Party Broker".
This company falls under US federal regulation by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). DriveWealth acts as an agent, executing orders by transferring the orders to a floor broker at the NYSE. Revolut's clients are protected up to $500,000 (including up to $250,000 cash) under the Securities Investment Protection Corporation's (SIPC) insurance.
Revolut has recently (April 2023) announced that it will move all its trading customers who reside in the European Economic Area (EEA) to a new European stock trading entity, called Revolut Securities Europe UAB (RSEUAB) . This new entity is regulated by the Bank of Lithuania. As a result, there will be changes in investor protection. Following the migration, users will not be entitled to individual SIPC protection, but only to a $500,000 protection for all RSEUAB accounts combined. This may mean that they will receive significantly less money in case of insolvency. Additionally, cash protection for EEA users will change to €22,000, compared to the previous €100,000 protection.
Get to know Revolut better and browse other top-tier regulated brokers
For detailed insights into trading conditions, costs, and service quality at Revolut, check out BrokerChooser's Revolut review for 2024. All our broker reviews are based on the analysis of nearly 600 data points and direct experience. When we review a broker, we go hands-on by opening a real-money account and trading on its platforms, giving us a complete view of what it offers and how it performs.
The BrokerChooser team has personally tested and reviewed more than 100 brokers globally, all of which have top-tier regulation. All our experience and expertise is included in the Find My Broker tool. Simply answer a few questions and get a personalized broker list.
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Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
