Earnings on gold, where Revolut or exchange broker is more profitable
If you want to make money on gold, then short-term trading of the precious metal is the best option.
Unlike investing in gold bullion, trading allows you to earn many times more, as it allows you to lock in profits rather than wait years for the price to rise.
The essence of this type of trading is that you enter into buy transactions, wait for the price to rise and make a sale, and after the price rolls back, you make another purchase.
As a result, you can make much more money on gold than with long-term trades where you buy and sell over several years.
Earn money with gold online
Due to the fact that the difference between buying and selling gold bars today is simply enormous and sometimes exceeds 10%, this option is absolutely not suitable for short-term transactions.
The only options remaining are those that do not involve the physical purchase of precious metal, which are carried out online.
Until recently, the only option for trading was through gold trading brokers :
These companies make it easy to buy or sell assets like XAUUSD online at the best price. But an equally interesting alternative has recently emerged in the form of investment accounts with Revolut.
Thanks to this feature, you can now buy not only gold, but also metals such as silver, platinum, and palladium directly from your Revolut bank account.
But how suitable is Revolut for short-term gold profits, when you need to open and close trades frequently? I tried trading gold with Revolut for several months and tested its profitability.
| Commission type | Revolut | Stockbroker |
|---|---|---|
| Opening a deal | 0,49% | 0.005% (in spread) |
| Closing the deal | 0,49% | 0% |
| Spread | 1.5% at opening 1.5% at closing |
0.005% at opening |
| Swap for position rollover | 0% | 0.01% per day or 0.3% per month |
Some issues with zloty trading through Revolut only became apparent when opening and closing trades. It turned out that in addition to the standard 0.49% commission, there's also a brokerage spread of around 1.5%.
The second unpleasant thing was that the spread and commission are taken both when opening and closing a transaction, while with stock brokers it is only taken once.
As a result, a completed gold transaction in Revolut will cost you 0.49 + 0.49 + 1.5 + 1.5 = 3.98% or $120 per troy ounce.
And the stock broker has only 0.005%, but if you hold the position for a month, then taking into account the spread 0.3 + 0.005 = 0.305% or $9.15 .
This means that when trading through a stock broker, the commission is 12 times lower than with Revolut.
Whether that's a lot or a little, you can judge for yourself. I bought 10 troy ounces of gold, and the total commission after the sale was $1,200. You could say I overpaid $1,100 in commission , which was about 25% of my profit.
In addition, the stop loss order did not trigger, which cost me another $75 in lost profit.
Therefore, it's safe to say that Revolut is only suitable if you're investing in gold for several years, and is completely unsuitable for transactions shorter than that. The convenience of trading directly from your account comes at a significant cost.
